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Saturday April 5, 2025

April 5, 2025 by Graeme MacKay

Trump's policies have redefined global trade dynamics, prompting allies like Canada to seek new economic opportunities beyond U.S. dependence.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday April 5, 2025 (Also, The Toronto Star)

The New Economic Landscape Post-Trump

Trump's vision of a manufacturing renaissance risks creating a mirage of prosperity, as low-skilled jobs return amidst automation, isolating the U.S. from global trade benefits.

April 4, 2025

In a world once defined by the stability of Pax Americana, marked by strong alliances and economic interdependence, the policies of Donald Trump’s administration have ushered in a period of unprecedented economic transformation. This era is characterized not by isolationism or autarky, but by a redefinition of global relationships and economic strategies.

Under Trump, the U.S. has pursued aggressive tariff policies and a rhetoric that prioritizes “America First.” This approach, while not fully isolationist, has undeniably strained relationships with long-time allies, pushing nations like Canada to explore new economic opportunities beyond their traditional reliance on the United States.

Opinion: Give Trump the Isolation He Craves

President Trump's "Liberation Day" tariffs risk isolating the U.S. economically and diplomatically, as allies retaliate and rethink their reliance on American partnerships.

April 3, 2025

As Sarah Neumann points out in Modern Diplomacy, the cessation of U.S. aid to global institutions under Trump’s leadership signals a retreat from the country’s historical role as a global leader. This shift has forced allies to reconsider their strategies, emphasizing diversification and resilience over dependency.

Canada, sharing the longest undefended border with the U.S., finds itself at a crossroads. As highlighted by Phoebe Maltz Bovy in The Globe and Mail, the “Buy Canadian” movement reflects a broader trend of seeking independence from American economic influence. This movement, driven by both pragmatic and political motivations, underscores a desire to assert Canadian sovereignty and economic stability in a world where U.S. policies have become unpredictable.

Opinion: From Canada-washing to isolationism, there are challenges in ‘Buy Canadian’

Canada, Pierre Poilievre, Donald Trump, Mark Carney, Liberation Day, tariffs, Canada, auto, trade, economy, leadership, "maple MAGA", politics, strategy, allegations, election

April 2, 2025

The ripple effects of Trump’s tariffs, as discussed in the context of U.S.-Canada trade relations, illustrate the broader challenges and opportunities faced by nations traditionally aligned with the U.S. While Canadian industries grapple with barriers to their largest market, they also recognize the potential in strengthening ties with other global partners, from the European Union to Asia-Pacific nations.

In this context, Mark Carney’s assertion that “the traditional relationship, marked by deep economic integration and close security cooperation, is effectively over,” captures the essence of this historic shift. He emphasizes the need for Canada to develop an economy less reliant on the U.S., suggesting the possibility of significant retaliatory measures. This marks a pivotal departure from the cooperative ties of the past, driven by current trade tensions and the broader geopolitical landscape shaped by Trump’s protectionist policies.

March 12, 2025

Mark Carney’s assertion that the era of Pax Americana is over resonates with the current global sentiment. The benefits that once flowed from a stable U.S.-led global order are being questioned as allies seek new pathways to economic prosperity. The end of this era does not equate to the U.S. becoming a “Hermit Kingdom,” but it does signify a shift from unilateral dominance to a multipolar world where countries must navigate complex trade dynamics and form new alliances.

Opinion: Willful Isolation

This historic moment is not merely a challenge but an opportunity for nations to redefine their economic identities. As countries pivot away from reliance on U.S. economic policies, they are compelled to innovate, diversify, and build resilient economies capable of thriving in a globalized world.

Ultimately, the transformation initiated by Trump’s policies is a call to action for both the U.S. and its allies. It is a reminder that global stability and prosperity depend on collaboration, adaptability, and a willingness to embrace new economic paradigms. As we move forward, the lessons learned from this era will shape the future of international relations and economic strategies, marking the end of one chapter and the beginning of another in world history.


Of Hermits and Americans Abroad

It’s a curious spectacle, observing the dichotomy between the globe-trotting Americans—those lively voices that penetrate the serene settings of foreign lands—and the insular policies championed by Trump’s administration.

Americans certainly have a knack for making their presence known when travelling abroad, whether it’s through loud, animated discussions about their Wyoming ski adventures or their children’s prestigious colleges, all while donning backward baseball caps in upscale foreign bistros. Have you caught the latest series, “White Lotus?” The characters, affluent American guests at a luxurious resort in Thailand, seem blissfully unaware of their exotic surroundings. Parker Posey’s character hilariously refers to their location as “China or wherever,” encapsulating a certain obliviousness. This zest for global travel stands in stark contrast to the “America First” policies we’re witnessing, with Trump steering the nation towards economic self-reliance. His rhetoric, filled with trade accusations, paints a picture of a retreat towards a more isolated stance, reminiscent of a “Hermit Kingdom” in spirit.

From my Canadian perch, it’s amusing to note the irony: while some Americans gallivant across the globe, others seem content in their own backyard, possibly indifferent to the world beyond. It’s as if the nation is recalibrating its international engagements, prompting other countries to metaphorically move their poolside chairs to quieter spots.

Trump’s peculiar fondness for leaders like Kim Jong Un adds an amusing twist to this narrative, leaving me wondering about the long-term direction of the U.S. Are we witnessing a temporary phase of isolation, or is this a lasting transformation of America’s global role?

Check out my making-of animated editorial cartoon for April 5, 2025, below! If you haven’t yet, please subscribe to my Substack newsletter, where I share weekly editorial cartoons every Saturday morning. Substack is a crucial platform for me amidst the uncertainties of being a staff cartoonist, especially given recent layoffs and newspaper closures affecting our field. As long as I hold my position, subscriptions will remain free. Thank you for your support! This “note” helps craft my weekly posts and showcases animated versions of my cartoons. Enjoy!

YouTube animation: https://youtu.be/4W0zj_5u-DY

– The Graeme Gallery

Read on Substack

 

Posted in: International, USA Tagged: 2025-07, Allies, Canada, diversification, Economy, Hermit Kingdom, innovation, Kim Jong Un, North Korea, Pax Americana, protectionism, Substack, tariffs, Trade, Uncle Sam, USA

Friday March 28, 2025

March 28, 2025 by Graeme MacKay

Canada reconsiders its auto industry alliances, will it embrace European and Chinese EVs for a sustainable future amid U.S. trade tensions?

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 28, 2025 (also, The Toronto Star)

Canada’s EV shift: Beyond U.S. trade ties

Donald Trump's tariff threats have united Canadians, sparking renewed patriotism and prompting a reassessment of economic independence and national identity.

February 5, 2025

As the North American auto sector faces unprecedented challenges, spurred in large part by former President Donald Trump’s aggressive trade policies, Canada finds itself at a crossroads. Trump’s strategy to fortify a domesticated American auto industry has sent ripples across borders, prompting Canada to reconsider its economic alliances and environmental commitments. In light of these developments, it may be time for Canada to chart a new course, embracing a green future that welcomes electric vehicles (EVs) from Europe and even China.

News: Carney calls Trump’s tariffs on vehicles ‘a direct attack’ on Canada and its auto workers

Donald Trump’s second-term rhetoric and policies signal a shift from isolationism to economic and territorial expansionism, challenging global stability and international norms.

February 7, 2025

Trump’s approach to the auto industry, characterized by protectionism and high tariffs, has created an unstable environment for Canadian automakers. With tariffs on steel, aluminum, and electric vehicles, Canada faces increasing costs and competitive disadvantages, threatening the viability of its auto sector. The U.S. administration’s focus on bringing manufacturing back to American soil has left Canada with dwindling options and a pressing need to diversify its economic partnerships.

In this context, the opportunity to rethink Canada’s green future is both timely and necessary. The global shift towards sustainable transportation presents a chance for Canada to align its policies with environmental goals, reducing reliance on fossil fuels and promoting cleaner energy. Electric vehicles are at the forefront of this movement, and international manufacturers offer promising alternatives.

Trump's "America First" policy is straining alliances and diminishing U.S. global leadership, while unilateral actions risk undermining international cooperation.

February 5, 2025

European EVs: Europe has long been a leader in environmental regulations and innovation, producing high-quality electric vehicles that meet stringent standards. By strengthening ties with European automakers, Canada can benefit from advanced technology and sustainable practices, positioning itself as a leader in the green transition.

Chinese EVs: China, with its rapid advancements in electric vehicle technology, presents another viable option. Companies like BYD have made significant strides, offering affordable, environmentally friendly vehicles that could significantly boost EV adoption in Canada. Despite political tensions, the economic and environmental benefits of engaging with Chinese manufacturers are compelling.

News: China wants more trade with Canada, envoy says amid U.S. tariffs

As global tensions rise, Canada faces pressure to swiftly increase its military spending to meet NATO commitments and protect national sovereignty.

Friday February 7, 2025

It is clear that maintaining the status quo with the U.S. is no longer sustainable for Canada’s auto industry. The need to pursue independent economic policies that prioritize Canada’s interests has never been more apparent. By reconsidering tariffs and fostering partnerships with Europe and China, Canada can secure its place in the global green economy.

This strategic realignment would not only support Canada’s environmental objectives but also provide consumers with more choices and competitive pricing. Allowing more affordable EVs into the Canadian market would accelerate the transition from gasoline vehicles, reducing emissions and promoting sustainability.

Analysis: Should Canada ease its 100% tariff on electric vehicles from China amid trade war with U.S.?

Canada must confront U.S. President-elect Donald Trump’s provocative meddling, including sovereignty-eroding rhetoric, damaging trade policies, and misogynistic attacks, with a coordinated and decisive response to reaffirm its independence and global standing.

December 19, 2024

As Canada stands at the precipice of change, the decision to embrace a new path is not just an economic necessity but an opportunity to lead in the fight against climate change. By welcoming European and Chinese electric vehicles, Canada can redefine its future, ensuring a resilient and sustainable auto industry that aligns with its environmental values. In this pivotal moment, Canada has the chance to set a precedent for innovation and collaboration, paving the way for a truly green future.


A Green Lining?

As I sat down to sketch this editorial cartoon, I can’t help but feel like I’m venturing into risky, perhaps even crazy, territory. Our usual product is cynicism, and there’s plenty of that to go around with the grim prospect of Trump’s trade tariffs threatening to decimate the Canadian auto sector. Trump’s intentions seem clear, telegraphed with the precision of a maestro conducting an orchestra of chaos. But as I contemplate the future, a flicker of opportunity emerges – in tandem with the silver lining that’s rallied Canadians around the flag.

Before the Biden administration pressured Canada into imposing tariffs on Chinese-built EVs, there was an intriguing development. The President of Ford Canada couldn’t hide his admiration for a Chinese model. According to Car and Driver, Ford CEO Jim Farley, in a surprising confession, revealed that he had been driving a Xiaomi SU7, imported from Shanghai, and he didn’t want to give it up. His words, a radical acknowledgment of the competitive threat posed by Chinese automakers like Xiaomi and BYD, resonate in this new reality.

While politicians play the wait-and-see game with Trump, wondering if his tariff brinkmanship is mere leverage or a harbinger of “Liberation Day” on April 2nd, the consequences loom large. If Trump’s gambit unfolds as feared, the carnage will be swift and severe, leaving American car sales in Canada in tatters. They’ll become costly relics, fossil-fuelled dinosaurs in an era that increasingly favours electric innovation.

It’s hard to imagine this scenario just months ago, but here we are. The idea of embracing Chinese EVs doesn’t seem so far-fetched anymore. They’re electric, highly rated, and affordable. In contrast, our closest ally has turned adversarial, seemingly intent on causing harm. The notion of leaning into a new partnership, once unthinkable, now seems like a reasonable course of action in a world reshaped by Trump’s unpredictable maneuvers.

As I draw, I embrace the riskiness of these thoughts. Maybe it’s crazy, but in the unfolding new reality that Trump is orchestrating, it doesn’t seem so outlandish after all.

Check out my making-of animated editorial cartoon for March 27, 2025, below! If you haven’t yet, please subscribe to my Substack newsletter, where I share weekly editorial cartoons every Saturday morning. Substack is a crucial platform for me amidst the uncertainties of being a staff cartoonist, especially given recent layoffs and newspaper closures affecting our field. As long as I hold my position, subscriptions will remain free. Thank you for your support! This “note” helps craft my weekly posts and showcases animated versions of my cartoons. Enjoy!

– The Graeme Gallery

Read on Substack

Letter to the Editor, The Toronto Star, Thursday April 3, 2025

Exhaust-pipe dreams – Canada’s EV shift, Mar. 31

Thursday April 3, 2025

Cartoonist Graeme MacKay nailed it. The North American auto sector doesn’t care about EVs — except to the extent that EVs threaten their lucrative business of keeping internal combustion engines running. In this, it has found common cause with the fossil fuel industry, which also stands to lose out as the public increasingly recognizes the superiority of EVs.

We see evidence for the North American auto sector’s duplicity in its move to change its rapid-charging standard from the global Combined Charging System to Tesla’s previously proprietary plug, a move that makes no sense except as a tactic to dissuade people from purchasing EVs. Yet it does provide an opening for the Canadian government to fight back in U.S. President Donald Trump’s trade war, by insisting that all EVs made in Canada use CCS and that all new EVs sold in Canada be compatible with CCS.

Of course, that would require a federal government that’s willing to stand up to corporate interests, so it won’t happen.

Gary Dale, Toronto

Posted in: Canada Tagged: 2025-06, auto industry, BYD, Canada, China, diversification, Donald Trump, electric vehicles, environment, Europe, EV, innovation, letter, partnerships, Substack, sustainability, tariffs, Trade, U.S.

Wednesday March 19, 2025

March 19, 2025 by Graeme MacKay
Wednesday March 19, 2025

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday March 19, 2025

Pierre Poilievre’s Plan to Undo Carbon Pricing: A Step Backward for Canada’s Climate Commitment

The escalating impacts of climate change, symbolized by metaphorical "Four Horsemen" including extreme heat gripping continents from North America to Asia, underscore the urgent need for global action to mitigate rising temperatures and their profound consequences on human health, infrastructure, and ecosystems.

June 20, 2024

As the climate crisis intensifies, countries around the world are working hard to reduce greenhouse gas emissions and meet international targets. Many progressive industrial nations have adopted carbon pricing as a crucial part of their strategy to combat climate change. However, Pierre Poilievre’s plan to eliminate carbon pricing in Canada risks reversing the progress we’ve made and could harm our reputation on the global stage.

Carbon pricing is an important tool that encourages businesses to cut emissions by making it cost-effective to invest in cleaner technologies. By putting a price on carbon emissions, we motivate companies to adopt greener practices, ultimately benefiting both the environment and the economy. Poilievre’s opposition to this approach shows a reluctance to embrace the necessary steps for a sustainable future for Canadians.

News: Net zero by 2050 ‘impossible’ for UK, says Badenoch

July 21, 2022

A worrying trend among conservative leaders is emerging globally, as highlighted by Kemi Badenoch’s recent comments in the UK. Badenoch, leader of the Conservative Party, stated that achieving the UK’s net zero target by 2050 is “impossible” without harming living standards or bankrupting the country. This marks a significant departure from the previous political agreement on the importance of addressing climate change. By aligning with such views, Poilievre risks placing Canada among those countries that are stepping back from their environmental responsibilities.

It’s also worth noting that Canadian conservatives once had a more forward-thinking approach. Under Erin O’Toole’s leadership, the Conservative Party supported carbon pricing as part of a broader climate strategy. O’Toole recognized the need for a carbon pricing system to drive innovation and reduce emissions. However, with Poilievre now leading the party, it has shifted back to outright opposition to carbon pricing, which is a significant step backwards.

August 13, 2021

If Canada rolls back carbon pricing, we could find ourselves among the nations failing to meet their climate commitments. This move would significantly hinder our ability to achieve the net-zero emissions target by 2050, which is essential for tackling climate change. Without a solid pricing mechanism, businesses may lack the motivation to innovate or shift to lower-carbon options.

Moreover, eliminating carbon pricing would damage public trust in Canada’s commitment to international agreements like the Paris Accord. As other countries advance their climate policies, Canada risks being seen as disengaged from the global effort to address climate change. This perception could hurt our international relationships and competitiveness in a world that increasingly values sustainability.

The revenue generated from carbon pricing is also crucial for funding green projects, public transportation, and renewable energy initiatives. Poilievre’s plan to scrap this revenue would rob Canada of essential funding needed to transition to a low-carbon economy, jeopardizing job creation in the green sector.

News: Poilievre says he would repeal federal carbon pricing for industrial emissions

June 2, 2017

In contrast to Poilievre’s vision, maintaining and strengthening carbon pricing would show leadership in climate action. It would send a clear message that Canada is serious about its environmental responsibilities and is committed to a sustainable future.

Pierre Poilievre’s plan to undo carbon pricing is a step backward that could undermine our climate commitments and hinder our ability to meet global targets. It aligns with a troubling trend among conservative leaders who prioritize economic concerns over environmental protection, as seen in the UK with Badenoch’s remarks. It also represents a retreat from the more progressive stance taken by former Conservative leader Erin O’Toole, who understood the importance of carbon pricing. Canada must remain a leader in the fight against climate change, embracing policies that promote innovation and accountability. The time has come to stand firm in our commitment to a sustainable future and reject proposals that seek to undermine our progress. The future of our planet depends on it.


Make Canada a Climate Laggard Again

If there’s one thing we can say about Justin Trudeau’s legacy, it’s that he put a price on carbon—something that had been debated and denied for years, especially under Stephen Harper’s government. Choosing not to commit to carbon pricing put Canada on the global map of climate laggards, alongside countries that talk a big game about caring for the planet but never actually take meaningful action. It was a pretty embarrassing time for us, especially when we were aligning ourselves with the “drill baby drill” mentality of climate deniers in the U.S.

Now, it feels like we’re sliding back into that old mindset with our own Conservative Party. Just when Canada is trying to set itself apart from the U.S. and connect with progressive partners who genuinely care about climate action, Pierre Poilievre pushed hard to axe the consumer carbon tax, got what he wanted just last week when the new PM Mark Carney did that very thing. Now, Poilievre is calling for the elimination of the industrial carbon tax as well. It’s got people questioning: if there’s no price on carbon, what real action does the Conservative Party plan to take on climate change? This stance could very well make them unelectable come 2025.

– The Graeme Gallery

Read on Substack

 

Posted in: Canada Tagged: 2025-06, Canada, carbon pricing, climate change, Conservative Party, dance environmental policy, fire, green technology, innovation, international agreements, net zero, Pierre Poilievre, progress, Substack, sustainability

Friday March 14, 2025

March 14, 2025 by Graeme MacKay
Mark Carney faces the dual challenge of overcoming domestic political narratives and external economic threats as he becomes Canada's Prime Minister.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 14, 2025

Prime Minister Mark Carney’s Balancing Act

Canada finds itself compelled to retaliate against Trump's aggressive tariffs on steel and aluminum, with Doug Ford leading the charge, as the nation seeks to protect its economic interests.

March 12, 2025

As Mark Carney stands on the cusp of becoming Canada’s 24th Prime Minister, the challenges he faces are as diverse as they are daunting. Sworn in today at Rideau Hall, Carney’s leadership marks a pivotal moment for Canada, with the weight of both domestic expectations and international pressures resting on his shoulders.

Domestically, Carney must navigate the political landscape shaped by Pierre Poilievre’s persistent rhetoric. By framing Carney as “Trudeau 2.0,” Poilievre seeks to capitalize on the waning popularity of the outgoing administration. To counter this narrative, Carney must swiftly distance himself from the Trudeau era, emphasizing his unique vision and policy direction.

News: After landslide victory, Mark Carney meets with Trudeau as transition to power begins

As Canada faces economic threats from Trump's administration, the nation must choose between Mark Carney's economic expertise and Pierre Poilievre's populist appeal to lead with unity and resilience.

March 11, 2025

This task is complicated further by the internal dynamics of the Liberal Party. As Carney aims to form a leaner, more dynamic cabinet, he risks alienating those who were integral to Trudeau’s team. The disgruntled voices of Liberals left out of Carney’s inner circle could pose a challenge to party unity. However, by prioritizing innovation and embracing diverse voices, Carney has the opportunity to rejuvenate the party and foster a sense of renewal.

Externally, the stakes are even higher. President Donald Trump’s aggressive trade policies and annexation rhetoric present an existential threat to Canada’s economic sovereignty. Carney’s background in international finance and economics will be crucial as he seeks to defend Canada’s interests while maintaining a constructive relationship with its largest trading partner.

In this volatile environment, Carney must quickly seek a mandate from the Canadian electorate. A strong mandate is essential not only to legitimize his leadership but also to unite the nation in the face of external challenges. With a robust public endorsement, Carney will be better positioned to negotiate with confidence and authority on the international stage.

News: Mark Carney to be sworn in as prime minister on Friday

Carney’s diplomatic acumen will be tested as he navigates these turbulent waters. By engaging with U.S. counterparts from a position of strength, Carney can work to mitigate the impacts of tariffs and counter the narrative of economic annexation.

Yet, the path forward requires more than reactive measures. Carney must articulate a bold and forward-looking vision for Canada—one that emphasizes economic resilience, innovation, and sustainable growth. By doing so, he can reassure Canadians that his leadership represents a clear departure from the past and a promising future.

News: Mark Carney aims for smaller cabinet, team planning to drop over a dozen ministers: sources

In this new era, Carney’s success will depend on his ability to balance these complex challenges. By demonstrating transparency, engaging with the public, and achieving tangible results, Carney can build trust and confidence in his administration.

October 26, 2021

As Canada stands at this crossroads, the nation looks to Mark Carney not just as a leader, but as a symbol of possibility and renewal. The road ahead is fraught with obstacles, but with decisive action and a clear vision, Carney has the opportunity to steer Canada towards a prosperous and united future. A strong mandate will be his compass in this journey, ensuring that Canada meets the challenges posed by an aggressive United States with unity and resolve.


Justin’s Baggage

Just finished my latest editorial cartoon, and it’s quite an interesting time for the Liberal Party with Mark Carney stepping up as the new leader. While my cynicism about the baggage of the past remains, there’s a sense of optimism with Carney at the helm, even if he’s an untested politician. His economic credentials and timing couldn’t be more fitting for the challenges ahead. At the beginning of the week, the party was riding high with Carney’s solid 86% support from the membership. But as we wrap up the week, the reality sets in that some of the cheers will turn to tears as long-serving ministers are shown the door. Carney’s got a tough job ahead, not only distancing from the past ten years but also facing formidable challenges from Pierre Poilievre and the unpredictable economic threats from our southern neighbour.

I know some might think I’m skewing my perspective to favour the Tories or just slamming the door on the derrière of the Trudeau era as it departs. But those who know my work understand I’ve never been a fan of Trudeau’s approach, which I feel has contributed to our current predicaments. It remains to be seen if Carney’s leadership will shift the dynamic, especially with Trump, who keeps pushing his wild notion of Canada as the “51st state.” I sure sure hope not! It’s a complex political landscape, and I’m just here to capture it all.

– The Graeme Gallery

Read on Substack

Posted in: Canada Tagged: 2025-06, Canada, Conservative, diplomacy, Donald Trump, Economy, innovation, Justin Trudeau, leadership, Liberal, mandate, Mark Carney, Pierre Poilievre, renewal, resilience, Substack, tariffs, unity

Thursday October 24, 2024

October 24, 2024 by Graeme MacKay

The Bank of Canada's interest rate cut offers brief relief, but Canada's deeper economic challenges—stagnant productivity, population pressures, and weak growth—keep the country stuck under stormy skies.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday October 24, 2024

Brief Ray of Sunlight in Canada’s Stormy Economic Sky

June 6, 2024

Canada’s economy feels a lot like a rainy autumn day where, just as the clouds momentarily part to let in a sliver of sunlight, the dark skies quickly swallow it again. The Bank of Canada’s recent interest rate cuts are that fleeting patch of blue—a welcome break for mortgage holders and consumers facing high borrowing costs. But the broader economic forecast remains stormy, with clouds of weak productivity, strained public services, and a widening prosperity gap between Canada and its peers gathering overhead.

The temporary relief from interest rates being lowered offers some households a reprieve, much like the sun warming your face just long enough for you to think, maybe the worst is over. But that moment of optimism is short-lived when you realize the downpour hasn’t stopped—it’s just getting started. Canada’s structural problems—stagnant GDP per capita, high immigration without sufficient infrastructure, and sluggish business investment—continue to drench any hope for sustained economic growth.

News: Bank of Canada cuts its key interest rate by a half-point to 3.75%

Despite falling inflation, the Bank of Canada is likely to keep interest rates steady, raising questions about an immediate drop in borrowing costs.

March 5, 2024

Despite the IMF projecting 1.3% growth in 2024 and better numbers in 2025, these figures barely keep pace with Canada’s population boom. The pie may grow a little, but the extra mouths at the table are taking bigger bites. Meanwhile, across the border, America’s economic engine is humming at full throttle, widening the wealth gap between the two countries to levels unseen in decades. Australia and the UK are pulling ahead, too, leaving Canadians wondering how a once-wealthy nation ended up falling behind even in the pack of its Commonwealth cousins.

To some, it feels like Canada’s economic ship is springing leaks faster than we can plug them, weighed down by interprovincial trade barriers, rising taxes, and regulatory red tape. Meanwhile, businesses are keeping billions in capital idle like passengers clutching lifeboats, unwilling to dive in and invest under such uncertain conditions. And the government, focused more on redistributing wealth than creating it, continues to prioritize social spending over pro-growth policies that could set the country on a more prosperous course.

Analysis: Tepid economic growth, combined with a population boom, has hit Canada’s standing among rich countries

May 2, 2020

The sun may peek out from time to time—like this rate cut—but until deeper reforms address the underlying structural problems, it’s clear we are sailing into rough waters. Canada can’t simply count on the clouds to part. The country must act decisively to boost productivity, ease immigration pressures, and attract investment—before we find ourselves stranded in an economic fog we can’t navigate out of.

Because if there’s one thing worse than a storm, it’s getting so used to the clouds that you forget what clear skies look like. (AI)


Catch the animated version of this cartoon posted as a note to my *all new* and experimental Substack Page. It’s at the early experimental stage (at the time of it’s posting,) and presented in the form of notes as I figure out how to integrate it into my daily routine. Find out what’s swirling in my head as I come up with my ideas.  It’s free and will continue to be, as will this carefully curated WordPress website which I’ve maintained obediently since 2012… until the traditional structure that has sustained me a livelihood collapses on top of me as it has for so many of my peers. Please take a look, and if you want to continue following/subscribe to my work, please subscribe, and thank you!

In Canada, today’s interest rate cut from the Bank of Canada—a pretty significant half-point reduction—offers a glimmer of hope amid an otherwise turbulent economic landscape. A family straddles on the roof of their home during a flood, taking respite from the storm as Tiff Macklem unveils the “Rate Cut” document. Around them swirls the rising tides and debris of debt, wreckage of lost innovation, stagnant wages, and soaring living costs, a stark reminder that this relief is temporary and the underlying issues still loom ominously beneath the surface.

A curious irony arises when we look southward to the United States. Despite robust economic growth, many Americans grapple with a sense of pessimism, fixating on income inequality, political instability, and inflation. Former President Trump’s exaggerated claims (aka lies) about the economy being in disarray only serve to amplify this narrative.

In contrast, many Canadians cling to the comforting illusion that our economy is stable, even as GDP per capita declines and our living standards lag behind not only the U.S. but also countries like Australia and the UK. This disconnect underscores a crucial point: Canadians may be too quick to celebrate fleeting moments of good news, such as interest rate cuts, while neglecting the mounting economic challenges that surround them.

Before dismissing this perspective as aligning with Pierre Poilievre’s “everything seems broken in Canada” rhetoric, it’s essential to recognize that the economy has been trending downward for decades. Federal fiscal policies—whether under Conservative, Liberal, or Liberal/NDP leadership—have all played a role in shaping the current disappointing state of the Canadian economy compared to similarly sized nations. Sloganeering will not lift Canada out of its economic malaise, nor will a complacent status quo. Forget the adversarial bunk that makes working across the aisle to get things done for the benefit of all in the long term. Setting aside partisan politics, we must demand real solutions to steer Canada back on the right path.

 

Posted in: Canada Tagged: 2024-19, affordability, Canada, Economy, growth, inflation, innovation, interest, mortgage, storm, Substack, Tiff Macklem
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