Roundup: Blockbuster jobs numbers—mostly

Statistics Canada released the Labour Force Survey numbers yesterday, and they were very good—four times as many jobs were created as had been forecast by economists. All of the jobs lost during the pandemic have been recovered and more, and unemployment is very nearly as low as it was before the pandemic began (at which point we were at record lows, around statistical “full employment”), and it was even noted that “core-aged” women had their highest ever employment levels. Things are turning around. Mostly.

There are still a lot of vacancies and there is a mismatch between jobs available and the skills that unemployed workers possess, and while the government is pouring money into training, that takes time. And labour shortages mean wages are likely to continue to increase (and if anyone says they’re stagnant, they are either lying or haven’t read the data). As well, productivity has taken a dive over the last quarter, so that will matter as well. Conservatives are claiming that the increase in jobs is as a result of the majority of pandemic benefits ending, but I’m not sure there is a direct comparison that can be made given the skills mismatches that are in the economy (and which pre-date the pandemic, which was one of the reasons why the Bank of Canada, among others, was making a concerted effort to call for inclusive growth). There is work still to do, but the government is feeling pretty good about the data.

Meanwhile, here are some economists’ takes to consider:

https://twitter.com/stephen_tapp/status/1466766974365622275

https://twitter.com/kevinmilligan/status/1466771813594140675

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Roundup: A plan hatched in caucus

Events yesterday bring to mind the 76th Rule of Acquisition, which states “Every once in a while, declare peace. It confuses the hell out of your enemies.” It almost feels like that was the tactic at play when the Conservatives decided to move a motion regarding Bill C-4—the conversion therapy ban— that would pass it at all stages. It did not receive any objections, and it went through, so the bill sailed through the House of Commons with no debate, and is now off to the Senate.

As I outline in my forthcoming Xtra column, the truth is that this wasn’t about confusing their enemies – it was about trying to take the heat off of Erin O’Toole and the social conservatives in caucus. After O’Toole’s office told the media that it would be a free vote, like it had been the last time around. Nine of those MPs didn’t survive their election, and O’Toole was being called a hypocrite for labelling himself an ally of the queer community without doing anything meaningful on proving it, like whipping his caucus so that they wouldn’t vote against the rights he said he respected. Thus, a plan was hatched in their caucus meeting where O’Toole basically laid down the law and said this was the route they were going to go, so that they could put this behind them.

I will fully admit that I didn’t expect things to turn out this way. The Xtra column was originally written to say that I expected them to drag out the debate on this bill again because it removed the loopholes around “consenting adults,” which many of the Conservatives were insisting on focusing on given how they couched their support for the ban under the weasel words of “coercive conversion therapy” instead of all forms, and a number of their MPs praised “counselling” that helped constituents deal with same-sex attraction of “lesbian activity.” I’m a little surprised that O’Toole exerted his authority on this particular bill given how much pressure his leadership is under – but there were also a lot of sour faces when the motion passed, and plenty of MPs who resolutely sat down and did not participate in the standing ovation that others in the caucus were visibly seen to participate in (chief among them former leadership candidate Leslyn Lewis). So I had to rewrite part of the column to reflect this change—even though it was a welcome change. But let’s not kid ourselves. This wasn’t a magnanimous gesture or one that showed true allyship—it was a pretty cynical ploy to avoid a recorded vote and further embarrassment of the party.

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Roundup: Setting more dangerous precedents to justify hybrid sittings

With a vote of 180 to 140, hybrid sittings will be returning to the House of Commons, which is bullshit and absolutely unconscionable, but the Liberals and NDP have managed to convince themselves of a lot of nonsense in order to justify this. For the Liberals, it was weaponizing a lot of nonsense about MPs feeling “unsafe” in the House of Commons with potentially unvaccinated Conservatives in their midst, which may be a theoretical danger at this point, but it’s not outside of what everyone else has to contend with – and in fact, we expect a lot of essential workers to put themselves in a lot more danger on a daily basis than MPs have to by being in the Chamber with nearly everyone double-vaxxed and everyone wearing masks. For the NDP, it was a lot of the usual handwaving about “work-life balance” and parents of small children, but they already have a lot of accommodations being made for them, and that excuse is getting thin.

What is especially egregious is that this debate over hybrid sittings and remote voting has created an artificial standard of perfect attendance which has never existed, and there is no reason why it needs to exist now. One or two votes won’t bring the government down, and being dramatic about it isn’t helping matters. If anything, creating this impossible standard of perfect attendance in order to justify hybrid sittings is irresponsible and downright dangerous, and sets a way worse example to the rest of the country. Allowing this standard to flourish will mean that MPs will never be allowed sick days or necessary leaves of absence in the future because they will be expected to attend virtually or to continue voting remotely, and it will be used as justification to keep hybrid formats going in perpetuity (which is very, very bad for the health of our Parliament). Perpetuating it will encourage MPs to remain in partisan silos because they don’t have to attend in person and interact face-to-face, and the toxic atmosphere of the last session will become the new norm.

There is also the accountability problem, which the Conservatives and Bloc have been absolutely right to highlight. Allowing attendance by Zoom allows ministers to escape accountability, and it allows all ministers and MPs to escape the accountability of the media because they will simply absent themselves from Parliament Hill, where they cannot be button-holed on their way in and out. Accountability is already suffering in this country, and the government has given themselves a free pass to let it slide even further, and their apologists are clutching their pearls about the pandemic still being on. This is no way to run a country.

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Roundup: Another of Kenney’s talking points blows up on him

The Alberta government is facing yet another situation where reality butts up against their preferred victimhood narratives – this time around equalisation. You see, for the first time since the 1960s, they have received more in federal transfers than they paid in federal taxes, and we can thank Justin Trudeau’s benediction, not only in pandemic transfers, but in things like money that they sent to the province to remediate orphan wells as a job-creation (and environmental) programme – never mind that they never should have because it meant that private companies and the province were able to successful offload their environmental liabilities to the federal government after the Supreme Court of Canada specifically ruled that they couldn’t under existing bankruptcy laws.

Of course, this isn’t stopping Kenney or his government from trying to spin this to carry on their narrative. For example, the province’s finance minister is claiming that they are still being unfairly impacted because of their contributions on a per capita basis continue to outstrip their share of the population. Because they have the highest incomes in the country by far and we have a progressive federal income tax. This is yet more of the province’s outright disinformation on how equalisation works because they are trying to make people angry rather than properly telling them how the system works, because if people understood, they might not be able to summon some performative outrage about it, and that wouldn’t help Kenney and his agenda.

Because really, so much of how the province is spinning this is yet more distraction sauce from Kenney’s continued failures, and the thousands of unnecessary deaths on his watch, and as I have pointed out elsewhere, Kenney has only one tool in his toolbox, and that is anger. He’s losing yet one more argument that Alberta is being treated “unfairly,” so you can expect a lot more gaslighting and deception in the near future as Kenney and company will try to push back against reality.

https://twitter.com/robert_hiltz/status/1458600346398478337

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Roundup: A headache over added and subtracted seats

The question of seat redistribution and the allocation – and subtraction – of seats has been simmering, and the premier of Quebec is demanding that the prime minister step in and guarantee that Quebec not only retain the seat it is slated to lose, but also to guarantee that because of the notion that Quebec constitutes a nation within Canada, that they must be guaranteed that their share of seats never drops even if their population grows at a much slower pace than other provinces. The problem with that? It would require a constitutional amendment to do, using the 7/50 formula (seven provinces representing 50 percent of the population). And that could be the tricky part.

Of course, the obvious solution is to tinker with the seat distribution formula, which the Conservatives introduced (fully intending to screw over Ontario for new seats along the way). But as I stated in my column a couple of weeks ago, we would probably be better served adding far more than just four seats – something more like 40 would be better for everyone, especially because it would mean better populating committees and keeping parliamentary secretaries from voting positions on them. Mike Moffatt and I discussed this over Twitter:

https://twitter.com/MikePMoffatt/status/1456558821942431744

https://twitter.com/MikePMoffatt/status/1456560023383969796

https://twitter.com/MikePMoffatt/status/1456590475985571840

Furthermore, if we stay at the current redistribution formula, that sole new seat in Ontario is going to cause a lot of problems with redrawing boundaries (which will then have provincial reverberations, because Ontario provincial ridings mirror their federal counterparts, with the exception of an additional seat in Northern Ontario for better representation. Once this reality starts to sink in, perhaps the government would start considering boosting that formula to avoid these kinds of headaches.

https://twitter.com/MikePMoffatt/status/1456593608648298498

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Roundup: Clear and concise, to counteract Poilievre

Earlier this week, to accompany the release of their Monetary Policy Report, the Bank of Canada released a sixty-second clip over social media to explain their assessment of the state of the Canadian economy in plain language. And it was great.

This kind of communication is essential, especially now, for the Bank because of the level of noise and misinformation that is being promulgated, particularly by certain members of Parliament who have made it their mission to politicise the work of the Bank, as they spout facile talking points about the current state of inflation that have zero bearing on the actual causes. And if it’s not Pierre Poilievre, my reply column is full of chuckleheads who think they know better, and inflation truthers (which are the gods damned worst). So yes, this kind of clear, simple-to-digest communication is especially needed by the Bank, much like the Cases in Brief have become an essential form of communication from the Supreme Court of Canada. This is a great initiative from the Bank, and hopefully we’ll see more like it in the future.

On a related note, former Bank of Canada governor David Dodge says that the current governor is on the right track with the economic recovery and where inflation is going, so if you needed an additional vote of confidence that they know what they’re doing, there you have it.

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Roundup: Rejections without significance

Because it’s a story that refuses to die, we now know that both the Bloc and the NDP have rejected the four main votes in the (garbage) Reform Act, and now we await the Liberals, who will in turn doubtlessly reject it as well whenever they finally have their first official caucus meeting, and of course, we have political scientists trying to derive meaning from these refusals, as they have tried with the Conservatives agreeing to the four votes.

The simple truth, however, are that these votes really don’t matter because the legislation is garbage. The power to elect caucus chairs doesn’t require its adoption, as we’ve seen, and the power over the expulsion of caucus members is largely illusory anyway because it tends to depend on what the leader says either way. I would be hugely surprised if the caucus and the leader ever parted ways on whether or not to boot someone out of the club, as that would create a schism and be a sign that the leader was on the way out. As well, the power of the caucus to pressure a leader to resign is actually better off without the Reform Act because what the Act winds up doing is protecting the leader by setting a high threshold and requiring a public declaration to trigger a vote, which can invite retribution. It has been far more effective to push a leader out with one or two public declarations by brave members that signal the writing on the wall rather than demanding a twenty percent threshold.

In the Hill Times piece, the Act’s author, Michael Chong, pats himself on the back for codifying these sorts of caucus decisions, but codifying them is part of the problem. Our Westminster system tends to work best under conventions that aren’t codified because it affords them flexibility and the ability to adapt, whereas codification is inflexible, leads to testing of the system and the pursuit of loopholes and getting around what has been codified. It’s the same with setting that threshold to push out a leader – it winds up insulating the leader more than empowering the caucus, and we’ve seen leaders resign with far less pressure than what this codified system affords, not to mention that by Chong codifying that party leaders must be selected by membership vote in the actual Parliament of Canada Act as a result of this garbage legislation, he has made it even harder for parties to return to the proper system of caucus selection and removal of leaders as we need to return to. Chong has screwed Parliament for a generation, and it would be great if the talking heads would stop encouraging him.

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Roundup: The $3.5 million witch hunt finds no witches

In Alberta, the Committee on Un-Albertan Activities – err, Allan Inquiry – released its final report, a year late and millions of dollars over-budget, and it concluded that there was no illegality or nefarious activity with regard to environmental groups who may have received some funding from international donors when it comes to opposing the oil sands and other oil and gas activities. Dollars that went toward campaigns against the energy sector were fairly minor, and had little-to-no impact on projects not moving forward (because market forces did the job just fine, thank you very much). In other words, the province spent $3.5 million on this joke of an inquiry, and tried to claim it was money well spent, because the government is nothing more than a total clown show.

And then there were the lies – the minister insisted that the inquiry was never about finding illegality (untrue – there are receipts), and Jason Kenney outright lying about what the numbers in the report stated, because he needs to try and spin it in the worst possible light to both justify the exercise, and to continue trying to point the populists he stoked in a direction other than his.

https://twitter.com/charlesrusnell/status/1451353269708603397

https://twitter.com/charlesrusnell/status/1451353273781293094

Meanwhile, prime minister Justin Trudeau is pouring cold water on Kenney’s referendum rhetoric, reminding him that a provincial referendum is not an amending formula for the constitution – seven provinces representing fifty percent of the population is. More to the point, Kenney sat around the Cabinet table when the current equalisation formula was last amended, so he can’t claim it’s unfair as he’s the one who helped put it into place. Because seriously – claiming it’s unfair because Albertans pay the same federal taxes as everyone else is just political bullshit masquerading as a grievance, even though it’s a grievance that has largely been created for the sole purpose of driving populist anger.

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Roundup: Performative consultations by the PM

It is performative consultation season, and lo, prime minister Justin Trudeau held meetings with Erin O’Toole, Jagmeet Singh and Elizabeth May yesterday, and the versions of the conversation released by readouts from both the PMO, O’Toole and Singh’s officers were…quite something. (Thread here). O’Toole demanded an end to CRB and an end to the “wedge politics” around vaccines, while Singh demanded CRB continue, and for the government to drop future appeals of litigation around First Nations children. Both were play-acting tough in their readouts, even though Singh is but a paper tiger. Trudeau’s readouts, meanwhile, were similar and bland, listing the already circulated “priority” items he wants to address right away (and yet is delaying recalling parliament), with no indication of what the other parties said, or if any kinds of agreements were reached.

Something that did come out of the readout with Singh was that Trudeau is in favour of continuing hybrid sittings, and Pablo Rodriguez’s office confirmed that, which is really, really disappointing and frankly mind-boggling. We are not in the same phase of the pandemic, and we are in a place where, with mandatory vaccination and masking, MPs can all safely attend parliamentary duties in-person, end of story. Carrying on hybrid sittings – which only the Liberals and NDP favour – are frankly unjustifiable, given the human toll that the injuries take on the interpreters, and the incredible amount of human and technical resources that they consume (and which have starved the Senate of necessary resources because the Commons gets priority). And just imagine telling the interpreters that they have to keep being subjected to injury because MPs are too gods damned selfish or lazy to do the jobs they’ve bene elected to do. Parliament is an in-person job – it depends on building relationships, which happens face-to-face. Hybrid sittings were 100 percent responsible for the last session devolving into complete toxicity, and if you don’t think that congeniality matters, remember that things don’t get accomplished without it. Those five months of procedural warfare didn’t happen in a vacuum. Saying they want hybrid sittings to carry on is both irresponsible and corrosive to parliament as a whole. There can be no justification for carrying them on.

Meanwhile, in case you thought it was just opposition parties making demands of the government before parliament is summoned, we have plenty of civil society groups calling for the paid sick leave for federally-regulated employees to happen immediately (erm, not how the legislative process works, guys), decriminalisation of illicit drugs, and for refugees and undocumented healthcare workers to be allowed access to a programme that would grant them permanent residency status.

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Roundup: A surplus thanks to federal funds

Something jumped out at me yesterday while doomscrolling, which was New Brunswick crowing that they have a bigger-than-expected surplus thanks to all of the additional federal dollars that were sent to the province because of the pandemic. And it stuck in my craw a bit – provinces have been crying poor when it comes to healthcare dollars and around doing things like improving long-term care, and then they turn around and pat themselves on the back for running surpluses as a result of federal dollars. It doesn’t quite add up.

The fact that certain provinces have been using federal pandemic dollars to pad their bottom lines is a problem for Confederation, particularly as these very same provinces are demanding that the federal government turn over even higher healthcare transfers, and justifying it with historically inaccurate talking points about the original share of healthcare spending without also recognizing the other agreements made in the late 1970s. The current federal government is certainly willing to spend the money, but they have also learned that they don’t want to get burned by it like previous governments have. Recall that when the health transfer escalator was at an unsustainable six percent per year, provincial healthcare spending growth was in the low two-percent range, meaning those additional dollars were spent on other things that did not improve the healthcare system. Similarly, when Stephen Harper tried to buy peace with Quebec and sign a huge cheque to correct a fictional “fiscal imbalance,” the provincial government turned around and cut taxes, which wasn’t the intent of said funding, and yet it happened.

It’s with this in mind that Trudeau has promised that there will be strings attached to future health transfers, and he laid out what many of those strings will be in the campaign, whether it’s hiring targets for doctors and nurses, or minimum salaries for long-term care workers. And yes, premiers will bellyache about it, and the opposition parties will take up those cries in the House of Commons, but we have seen repeatedly over this pandemic that the provinces will demand money and then not spend the money they do get. Time for some accountability for dollars – because it’s all coming from the same taxpayer in the end, regardless of which level of government is trying to make their bottom line look better.

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