Roundup: The slow part of the economic recovery

It was a big day for economic news – the Bank of Canada stating that they expect interest rates to continue to be at near-zero until 2023, as the economic recovery moves into a much slower phase as we wait for a vaccine for the pandemic. They also stated their plan to change how they buy bonds going forward. A few hours later, Chrystia Freeland gave a major speech wherein she stated that the government was going to keep spending until the pandemic was over, because they can at a time of such historically low interest rates, and because it provides businesses and households a necessary bridge through the economic turmoil until the pandemic is over. And for those of you in the back, it’s not 1995, and even with all of this added spending – which is time-limited – is not going to create a debt bomb. It’s just not.

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Of course, conservative pundits set about clutching their pearls that the government is taking on the debt instead of households, apparently not comprehending that they have more tools and levers at their disposal than households – but these are the same chuckleheads who equate government debt with credit card debt. The Bank of Canada’s Monetary Policy Report noted that much of the recovery to date has been on the back of consumer spending, which is one more reason why allowing households to go insolvent and enforcing consumer austerity would only harm the economic recovery – we saw this in the Great Depression, where consumers who had money but didn’t spend it because of the social stigma prolonged the depression for years. And yet, we keep hearing “taxpayer dollars!” and “leaving debt to our children,” as though leaving them a weak economy is any better – particularly if that debt is affordable and is treated as an investment with programmes like childcare, that creates more economic returns. This should not be a difficult concept to grasp – and yet…

Meanwhile, here is Kevin Carmichael’s parsing of the Bank of Canada’s rate decision and Monetary Policy Report, while Heather Scoffield gives her own thoughts on Freeland’s speech.

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QP: Fundraising from alleged gangsters

It being Wednesday, prime minister Justin Trudeau was present, and ready to answer — well, respond to — all questions put to him. Erin O’Toole led off, reading a script in French that was concerned about the world health information network and it being sidelined, which he blamed the prime minister directly for. Trudeau stood up and extemporaneously stated that they always had an eye out when it comes to infectious diseases and the Chief Public Health Officer was on the COVID file in December. O’Toole accused the government of reading press releases out of Beijing, and Trudeau disputed that, talking about being multilateral partners on this. O’Toole switched to English to repeat his first question, to which Trudeau accused him of drumming up alarmist political points before repeating his points about Dr. Tam being engaged early on. O’Toole added bombast to repeat the accusation, and Trudeau went on a tear about the Conservatives cutting science while his government invested in it. O’Toole then changed gears to talk about Senator Salma Ataullahjan’s candidacy for presidency of the Inter-Parliamentary Union, to which Trudeau said that governments don’t give endorsements but he wished her well. Yves-François Blanchet led off for the Bloc, raising the death of Joyce Echaquan, to which Trudeau stated that it was a reflection of systemic racism in Canada. Blanchet demanded the government do the work with the First Nations that the Quebec government was doing in response to the death, to which Trudeau first pointed out that Blanchet finally admitted that there was systemic racism in Quebec, before pointing out efforts the federal government was making. Jagmeet Singh was up next to lead for the NDP, and in French, he demanded that a future COVID vaccine be made freely available to Canadians, and Trudeau stated that they were working to ensure that it would be. Singh changed to English to reiterate the same question, insisting he wanted clarity, and Trudeau rambled about what a great job they have done on procurement to date.

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Roundup: O’Toole on the third ballot

On a third ballot result, Erin O’Toole won the Conservative leadership race. The big event turned into a very big disaster. It was delayed by over six hours because the machine they were using to open the envelopes with ballots started destroying thousands of ballots, and it was well past midnight by the time the first ballot was even announced – far beyond the day’s news cycle and past the deadlines for newspapers’ first editions, which had long since gone to print. While we were waiting, Andrew Scheer gave his farewell speech, which was bitter, and full of jejune understandings of conservatism or the political landscape – he railed against imaginary left-wing straw men, scared up a Bolshevik threat, lied about the media – to the point where he called The Post Millennial and True North (aka Rebel Lite™) as “objective” that more people should pay attention to, which is incredible.

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As for the result, this was very much about the social conservatives flexing their muscles within the party. Both Leslyn Lewis and Derek Sloan got over 35% of the votes combined on the first ballot, and there were places where either of the front-runners came in third to Lewis, and she swept Saskatchewan, where MacKay came in last. And true to form, it was those social conservatives’ down-ballot support that played kingmaker to O’Toole over MacKay, who was inexplicably considered the “last Progressive Conservative standing” (which doesn’t make sense because he was in no way a PC MP, especially if you look at his voting record). O’Toole at least has a seat, so that means he can get to work immediately, but we’ll see how many bruised feelings are in the caucus and party ranks given how the campaign played out, especially given that O’Toole hired a professional shitposter to run his campaign.

For his victory speech, O’Toole graciously thanked his competitors, and thanked the “patriotic Canadians” who made the victory happen. He paid special mention to Quebec, where he won the most votes, and made it clear that he was going to keep Sloan in the fold, in spite of some of his odious statements. O’Toole insisted that he was going to unite the party, before he took pot shots at Trudeau. He said they would be proposing a new “positive Conservative vision,” and that they would be ready for the next election, which could be as early as this fall. And then it was onto the doomsaying about the direction of the country under the Liberals, complete with the economic illiteracy that has marked the modern Conservative party. “The world still needs more Canada – it just needs less Justin Trudeau,” O’Toole said, before insisting that everyone has a home in the Conservative party.

We’ll delve into the entrails of the regional breakdowns of the race, and the particular mechanics of it and how that affected the results, but I will tell you right now that I have little patience for these takes about how this result means that the party’s power is shifting eastward – that’s hard to believe given the concentration of their votes, even though none of the leadership candidates came from there. And frankly, the notion that the party requires someone from Alberta to helm it keeps it blinkered, and insular. That’s not how you build the kind of national party that the country needs.

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Roundup: Taking a personal day

Of all the possible misplays for Justin Trudeau to make at the height of a controversy around his poor choices, ethical blind spots, and insistence that he’s being open and transparent, the first day of a two-day recall of the House of Commons saw him absent with the only excuse on his daily itinerary being a “personal day,” which sent the opposition into a frenzy. It’s not like Trudeau chose this day for the Commons to be recalled and for there to be a proper Question Period – erm, except he did. And then wasn’t present. Way to read the room.

Andrew Scheer had his own attempts to make hay, insisting that if the Liberal backbenchers don’t oust Trudeau (without a mechanism to do so, it should be noted), that they were signalling that they were okay with his “corruption” – never mind that a conflict of interest is not actually corruption, and he’s not exactly someone who should be throwing stones considering that he was forced to resign his own leadership after it was revealed that he was helping himself to party funds to the tune of almost a million dollars.

Meanwhile, the Conservatives are also pushing back against the bill being debated, objecting to the “complexity” of the wage subsidy changes, despite the fact that for there to be a proper phase-out and to ensure it’s more broadly encompassing than the programme was initially, there needs to be added complexity. Their objections won’t matter for much, considering that the Bloc has agreed to support the bill regardless so there are enough votes to go around, but it is a change from bills being supported unanimously at all stages, and something that resembles a sense of normalcy slowly returning to Parliament, which is a good thing.

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Roundup: A brief return to the Commons

The Commons will be meeting today in an actual, real sitting and not an abbreviated strange hybrid committee, in order to pass Bill C-20 on disability payments, which they say is in an improved format from their previous attempt in C-17 (which one presumes is now withdrawn from the Order Paper). The bill also includes the changes to the wage subsidy that were announced on Friday, and it sounds like will also have the changes to court system timelines that were previously announced and part of C-17, but the text of the bill won’t be out until the Commons actually sits. We also know that the bill will pass, because the Bloc have agreed to everything, and this means a motion that will see the bill essentially passed at all stages with a couple hours’ worth of speeches in lieu of actual debate or legislative processes, which is less than ideal. We’ll also have a proper Question Period today, so we can look forward to that, and all of the questions on the WE Imbroglio that will come with it. The Senate has not yet announced when they will be meeting to pass it on their end, which may not be until later in the week.

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Roundup: Armed intruder at Rideau Hall

The big excitement for the day was that there was an Incident at Rideau Hall first thing in the morning, as a Canadian Forces member, who was armed, crashed his truck through the gates of the compound and headed over to Rideau Hall on foot, where he was then apprehended by RCMP in what sounds like a two-hour “dialogue.” Apparently he wanted to “send a message” to the prime minister – who wasn’t at home at nearby Rideau Cottage at the time, nor was the Governor General in Rideau Hall (but if you recall, she has consistently refused to move into the residence there, preferring to stay at Rideau Gate). He was arrested without incident, and has apparently made online posts about a supposed COVID-19 conspiracy theory – and it comes just a day after anti-lockdown protests were happening on Parliament Hill, featuring a former has-been wannabe party leader who shall not be named, and some of the images seen on the Hill included those of Trudeau being hanged, while others touted these kinds of COVID conspiracies. So that’s fun.

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Meanwhile, over in Alberta, the rhetoric about the plan to hold a referendum on equalization rolls along, so here is political scientist Melanee Thomas to spill some tea about just exactly what they are talking about, and why the arguments aren’t as clever as they think they are.

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Roundup: Not the provinces’ cash cow

Everything got off to an earlier start yesterday, beginning with the ministerial presser, during which Marc Miller announced another $650 million being allocated to Indigenous communities for healthcare, which would also include added income supports for those living on-reserve, as well as some $85 million to build new shelters for women on reserves. Marc Garneau also announced that the ban on cruise ship docking in Canadian waters was going to be extended to October 31st, which will impact the economies of these communities, but also limits potential vectors for the pandemic. When pressed about the issue of airline ticket refunds, Garneau reiterated the warning that the sector could fail if they were forced to refund all of the tickets, though later on, prime minister Justin Trudeau indicated that there were talks ongoing.

For his presser, Trudeau started off by talking about his teleconference with the premiers and spoke about sick leave being one of the items on the agenda, and it was later in the Q&A that he said that he was offering for the federal government to assume most of the responsibility for the costs, rather than putting it on business owners, but it sounds like some premiers remain rather cool to the idea. After reiterating the earlier Miller/Garneau announcement, Trudeau took questions, which included mention that he was trying to get premiers to agree to some modified orders at the Canada-US border that would allow family reunification, such as cases like the Canadian woman who was trying to get the American father of her unborn child into the country before she gave birth – but again, there are premiers who are not keen. After the questions, Trudeau then gave an unprompted statement on anti-Black racism as a result of what’s going on in the US – that there is a need to stand up as a society, that there needs to be more respect, and that we have work to do as well in Canada. He called on all Canadians to stand together in solidarity, as they know how deeply people are being affected by what we are seeing on the news.

Something else raised in Trudeau’s Q&A was a letter sent to him by five of his Toronto-area backbenchers, calling on him to lead the country in national standards on long-term care, and to press Ontario for a full public inquiry into what happened with the breakdown in care (which I maintain won’t tell us anything we don’t already know). Trudeau praised them for their efforts, and talked about the ongoing talks with provinces, but two of those MPs were on Power & Politics later in the day, and something that I was also glad to hear was Judy Sgro saying that while they wanted federal leadership, they both were respecting that this is provincial jurisdiction and they also didn’t want the provinces treating the federal government like a “cash cow” when you have premiers like Ford demanding more federal funds to fix their own long-term care mess. My own patience for provinces crying out for federal funds to fix the problems in their own jurisdiction is wearing mighty thin, particularly as most of those provinces have broad taxation powers at their disposal (though some of those provinces have less tax room available to them – Ontario, however, is not one of them). Premiers don’t want to have anything on their books and would rather it come from Ottawa’s, so that they don’t have to look like the bad guy when it comes to paying for their own programmes – never mind that there’s really only one taxpayer in the end.

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Roundup: Expanded help, pending the provinces

For his daily presser, prime minister Justin Trudeau opened by talking about his meeting with G7 leaders, talking about the need for a global response to a global pandemic, and the need to help more vulnerable nations – leaving it unspoken that it will be harder to do that if the WHOs funding takes a big hit thanks to Trump’s conspiracy theorism around it. He mentioned his upcoming meeting with the premiers, and noted that Quebec had made an official request for assistance with its long-term care workers – and while many reporters wanted details on what exactly the ask was, the response through the day was that it came late the night before and they were still talking with the province about how best to support them (though the theme seems to be that they want the army to help with these long-term care facilities – something they may have some ability to help with). Trudeau also noted that when things weren’t going as well as hoped, “we make changes,” and then announced that they were expanding the eligibility for the Canada Emergency Business Accounts, as well as gave a few more details about the planned Canada Emergency Commercial Rent Assistance, which would provide loans (some of them forgivable) to commercial property owners on the condition that they provide rent reductions to commercial tenants in May and June – though the coordination of this is still happening with the provinces.

One thing that did emerge, both in the Q&A with Trudeau and during the ministerial one that followed, were questions relating to the modelling of the pandemic, and how we’ve had nearly twice as many deaths as projected by this point, prompting questions about what went wrong with the models. And my head exploded. These models were not predictions or forecasts – they’re an exercise to help with resource planning, which has been stated over and over again, and yet we had more than one journalist try and treat these models as credible data. And because these reporters been told time and again that they’re not data, they’re not forecasts, they’re planning tools, and the fact that this doesn’t sink in, is crazy-making.

Meanwhile, here’s economist Kevin Milligan’s evaluation of the Conservative demand for a GST rebate, which is harder than it looks, and probably not as helpful as the Conservatives think it would be.

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Roundup: Playing gotcha with the leaders

Yesterday had no presser from prime minister Justin Trudeau, but did have a ministerial presser featuring Marie-Claude Bibeau and Deb Schulte. Bibeau laid out additional measures and funding for employers of temporary foreign workers in the agri-food sector so that they can properly quarantine those workers when they arrive, and eventually properly explained the measures taken with the arrivals that the Bloc lit their hair on fire about on Saturday (which the government could have done three days ago had they been more competent in their communications). Schulte spoke about the new federal guidelines for long-term care facilities, but because it’s provincial jurisdiction, they’re hoping the provinces implement said guidelines (but no, they don’t really have any levers to force them because of the constitutional division of powers).

Of course, all anyone could talk about today was the fact that Justin Trudeau *gasp* went to see his wife and kids at Harrington Lake (where they have been staying since Sophie Grégoire Trudeau’s recovery) over the weekend, which people claim is in contravention to public health dictates. Erm, except that’s not really true because Harrington Lake is an official residence that is 20 minutes outside of Gatineau. It’s a gods damned suburb where people live year-round. It’s not cottage country where you have small populations and poor public health services that people are attempting to flee to and exposing the locals when they raid the area store on the way up. That was the behaviour that Public Health was warning against, but hey, let’s try to play gotcha.

And then there was Andrew Scheer, who decided to bring his wife and kids with him back to Ottawa on the government jet sent to pick him up for the Saturday sitting. It was supposed to be Elizabeth May, Carla Qualtrough and Scheer, where they could each physically distance on the plane, but with Scheer bringing his family (to spend the rest of the current pandemic period at Stornoway rather than in Regina, where they had been) at the last minute, and May and Qualtrough opted not to be dicks about saying no. (May and Qualtrough were flown back to BC after Saturday, for the record). It may say something about Scheer’s particular sense of entitlement, and that perhaps he should have made arrangements clearer beforehand so perhaps a different plane could have been sent, but the accusations between partisan camps over this is about as mature as we’ve come to expect during a global pandemic.

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Roundup: Supplies, spin, and rent

Prime minister Justin Trudeau’s daily presser was on the theme of medical supplies – signing agreements with three major medical suppliers in the country, MOUs signed with five other companies, and some 3000 other companies who have volunteered to help the government with those supplies in whatever way they can. Trudeau also noted that they have allocated an additional $2 billion for new personal protective equipment, largely by way of bulk-purchasing, and that more supplies would be arriving within days. As well, the government is tasking its next-generation manufacturing supercluster with scaling-up these kinds of producers to meet the domestic and global demand. Why this became a somewhat fraught issue is because there are places in the country where PPEs are being rationed, and Quebec stating that they were days away from running out – though Trudeau said that in some cases, it may be the medical providers who were rationing because they were trying to preserve supplies for an anticipated surge of cases.

[Here is another Q&A with infectious diseases specialist, Dr. Isaac Bogoch, and a discussion on the current debate about masks.]

Meanwhile, the National Post hears from a bunch of government insiders who claim that the attempt to get the power of taxation without parliamentary approval was about trying to hold leverage of the big banks who have been reluctant to loosen lending requirements, which is an explanation that makes absolutely no sense, and makes me again repeat that there appears to be a cadre of jackasses in Morneau’s office who have been responsible for many of this government’s missteps and woes, and we shouldn’t trust them.

And while I’m on the subject of jackasses, I spent much of yesterday on the Twitter Machine trying to remind people that rent is provincial jurisdiction, so constantly hounding the federal government is a waste of time. This was met with numerous people who insisted that the federal government could invoke the Emergencies Act to claim that power. The mind boggles. Why in the hell would the federal government invoke the tool of last resort to intrude into landlord/tenant legislation when the provinces are perfectly capable of doing so on their own. It makes zero sense. Add to that the people crying out that the federal government should immediately give money to renters, as though there were a mechanism to do so. It’s taking the CRA three weeks to retool their systems to deliver the CERB, which is a pretty breakneck speed to ensure that the system can do what’s being asked of it and hopefully not fail doing it (because their computers are not magic, and you can’t just type “give everyone $2000” and expect it to happen. It’s impossible). And no, there is no analogous funding arrangement to healthcare or post-secondary, as others were trying to claim – those are funding envelopes to provincial governments that come with agreements. They don’t go to individuals, and they are not spending in provincial jurisdiction over the objection of any province. The number of people who seem to think otherwise is astounding.

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