00:01:00.000welcome to canada's most irreverent talk show this is the andrew lawton show brought to you
00:01:19.160by true north hello and welcome to the andrew lawton show canada's most irreverent talk show
00:01:29.180here on true north thursday april 25th and we are going to have a grand old time here as we close
00:01:35.400out the week at least in so far as the andrew lotten show is concerned but we got off the
00:01:40.020record coming up on uh well tomorrow i don't know why i was going to give a day of the week there
00:01:44.200and also i should make a point of letting you know if you're in the ottawa area i'm going to be
00:01:49.460speaking this weekend on sunday on a panel about my favorite topics free speech ethics and democracy
00:01:56.800It's going to be at the Lansdowne Park Horticulture Building.
00:02:00.560It's part of the Ottawa Food and Book Expo, and I like both food and books.
00:02:05.100Ottawa, I'm a little bit iffy on, but I like food and books, and I'm indifferent to expos.
00:02:10.860But I think it'll be a grand old time.
00:02:12.900Julie Panessi, who has been on the show a couple of times, will be on the panel as well,
00:02:17.180as will Randy Hillier, who dislikes me because he's always, like, firing, like, these pot shots at me on Twitter.
00:02:22.940But I've, you know, only ever had favorable interactions with him in person.
00:02:26.040So it should be fun, but that's going to be coming up on Sunday.
00:02:29.640So if you are in Ottawa and you want to get some tickets, you can head over to Eventbrite.
00:02:33.720And I think if you search my name, I believe this is the only thing that comes up.
00:02:37.100So if there's another Andrew Lawton that's, you know, some folk singer touring Dubuque, Iowa on Sunday, that's not me.
00:02:43.900I'm the one at the Ottawa Food and Book Expo, but that should be great fun there.
00:02:49.120I wanted to kick things off by revisiting this capital gains increase in the budget.
00:02:53.820Now, to be fair, when the Liberal government announced the increase to the capital gains tax in the budget that was released last week, I didn't think that would be the thing to get legs, but it has gotten legs.
00:03:04.560It has been a thing that a lot of people have been talking about.
00:03:07.460One of the more notable criticisms of this was from Canadian doctors who were saying, well, hold on.
00:03:13.980I mean, doctors, if they have professional corporations, which most of them or almost all of them in private practice do, they've been using capital gains basically as their retirement plans.
00:03:23.820So now when government is putting a pretty significant increase to the capital gains
00:03:29.220tax, that is going to disadvantage Canadian doctors, so much so that many of them have
00:03:33.840said they will probably shut down their practices, retire early, or leave the country altogether.
00:03:39.160Now, this is a country in which it's very difficult for a lot of people to get a family
00:03:43.340doctor or to get access to a family doctor if you have one.
00:03:46.720So when you've got doctors that are, by and large, not a particularly political group
00:03:51.100getting up and saying, whoa, whoa, whoa, this is a big problem here.
00:03:53.820that's what the Canadian Medical Association did, governments should pay attention. But it was
00:03:59.300amazing how one of the ministers that was dispatched to the media to defend and sell the budget
00:04:04.780really had no answer whatsoever for this. This is the small business minister in Canada
00:04:10.420going up against David Poutine for the CBC. Cochran, take a look.
00:04:16.020There has been some pushback that this could affect family doctors and other professionals
00:04:20.300who incorporate their practice for the tax advantages that a corporation would have.
00:04:25.180So while individually, if they were, say, working in a hospital,
00:04:30.420they would not necessarily be affected by the new capital gains inclusion,
00:04:33.240but if their corporate structure is such that they're relying on corporate investments
00:04:36.840to pay for their future and their retirement, they're going to be hit.
00:04:39.900And in a country that's already struggling to have enough family doctors,
00:04:43.940this creates a disincentive for some of them to work in Canada.
00:04:47.120We recognize that, but one of the things that we will continue to do is encourage
00:04:51.760foreign credential recognition to help. We know that coming out of the pandemic our health care
00:04:56.960has really been hampered and there's a really challenge with labor, but the investments we
00:05:01.760made with foreign credentialing, we've already made a significant investment in previous budgets
00:05:05.840and in this year we've topped that up and we will continue to invest to ensure we're encouraging
00:05:10.560bringing talent from other countries to get their credentials recognized and that will also
00:05:16.000encourage them to get more jobs here and fill the desperate labor market needs that are
00:13:58.100He was the Malaysian Minister of Communications or something of that sort.
00:14:03.140And she was holding him up as being this, you know, hero to press freedom.
00:14:07.000And I Googled for, you know, all of like three seconds or whatever and found that he had tried to weaponize Malaysia's online speech laws against a blogger who lived in a different country because that blogger was saying mean things about him.
00:14:21.340And Malaysia is a country where the government can get away with doing that.
00:14:24.060But we can't import that sensibility into Western nations.
00:14:27.600So good on the Australian Prime Minister for saying the quiet part out loud, which is that he loves the government's ability to censor online because he doesn't like when people post satirical images of him online.
00:14:39.120That is, thank you, Prime Minister, for making our point for us.
00:14:43.080I couldn't come up with a better criticism of this bill than you saying what you've been using that law for yourself.
00:14:48.620Well, let's shift gears here, no pun intended, to yet another big-ticket automotive funding announcement
00:14:55.840from the federal government in Canada and also the provincial government in Ontario.
00:15:00.260Justin Trudeau stood and made this proclamation about Honda today.
00:15:06.020Today, Honda is making Canadian automotive history.
00:15:10.540With this announcement, we will be investing to create Canada's first comprehensive electric vehicle supply chain from start to finish.
00:15:22.400Today, we announced that Honda will invest to create the first complete supply chain of electric vehicles in Canada.
00:15:31.160A whole ecosystem will be built with four new manufacturing plants in Ontario, including an EV assembly plant, a standalone battery manufacturing plant, and two plants for battery components.
00:15:46.140These investments will create well over 1,000 well-paying manufacturing jobs as well as many, many construction jobs and, of course, jobs all across Ontario and the country for auto parts suppliers.
00:16:04.020But this announcement isn't just about creating jobs.
00:16:07.500It's about securing good jobs and careers for the coming decades and even the coming generations.
00:16:15.820Honda has set a goal to make EVs represent 100% of vehicle sales by 2040.
00:16:23.220In Canada, our target is that 100% of all light-duty cars and passenger truck sales be zero emission by 2035.
00:16:32.500And that underlines what we've always said, climate policy is economic policy.
00:16:39.720and with its impact on families and communities around here it's also social policy
00:16:46.100wow it sounds phenomenal it's social policy it's environmental policy it's economic policy it's
00:16:54.080great you notice in that announcement he mentioned that honda is investing 15 billion dollars he's
00:17:00.560there announcing honda's investment honda's putting the money forward well look i think
00:17:05.160of honda wants to spend 15 billion dollars and build four electric vehicle plans in ontario
00:17:09.720that's great but it isn't just honda that is putting money towards this this part has been
00:17:15.720buried a little bit even in the government press release it's way way way down below what honda's
00:17:20.660putting up it's what you and i are putting up aaron woodrick is with me he is the head of the
00:17:25.260domestic policy program over at the mcdonald laurier institute aaron what's uh what are we
00:17:30.340missing here it's not just honda's money is it no it's not and you you wondered if it was honda's
00:17:35.320money what on earth would all these politicians be be doing they're stepping up to a podium it's
00:17:39.380great if you have a company that wants to invest that kind of money in canada that's a great sign
00:17:43.400but of course the devil's in the details and it turns out andrew you and i and other taxpayers
00:17:48.560in canada ontario we're on the hook for five billion out of that 15 billion so a whole third
00:17:53.620of that is going to be coming out of our pockets uh to go to honda who are doing okay i checked
00:17:59.800this morning when I saw the announcement, you know, they made $8 billion U.S. in global profit
00:18:03.940last year. So this is not a company that is hard done by. This is clearly a company that's got the
00:18:08.300resources to invest their own money, which is great. And they should do that. And we should
00:18:12.080welcome that. But that does not explain why Canadian taxpayers are being forced to stick
00:18:17.340$5 billion of their own money. You know, we pay taxes for public services, Andrew. Instead,
00:18:22.580they're turning around and giving it to a very profitable multinational corporation.
00:18:26.360I don't consider myself to be a mathematician. I always double check with a calculator to make
00:18:32.540sure I'm not getting anything right. But I was told that this would create a thousand jobs. Now
00:18:37.000you may think, okay, a thousand jobs, that's phenomenal. And I remember billions are the
00:18:40.760ones with nine zeros. So I can work back from there. That works out to be, again, correct my
00:18:46.620math here, $5 million per job. That's exactly right. And Andrew, it is as crazy as it sounds.
00:18:53.860people might say, well, that doesn't sound quite right. Well, it is right. They are actually
00:18:57.700subsidizing the equivalent of $5 million per job. So you heard the prime minister there. He said
00:19:02.640they'd be well-paying jobs. Boy, I hope they're really well-paying jobs if we're paying $5 million
00:19:07.040a pop just to create them. Yeah. And again, I mean, not that I'm recommending this as policy,
00:19:12.360but it would literally be cheaper just to walk around Alveston and give everyone a million
00:19:17.440dollars and would probably have more of an economic benefit because then at least their
00:19:21.620people are spending it like this is absurd and there's no roi on this like you'll never make
00:19:26.220that money back no and look uh you know the the government always has i know all the lines right
00:19:31.900now if you're familiar with these types of announcements you can pretty much sing the song
00:19:35.540um they're going to talk about spin-offs they're going to talk about you know other impacts in the
00:19:39.720community but the reality is we are paying these companies to create these jobs you know andrew
00:19:43.520when i hear politicians talk about good paying jobs and the importance of them that's always on
00:19:47.780the presumption that they're being generated by the private sector. If you're going in
00:19:51.300and essentially paying the salary of these people for the company, it's not really a private sector
00:19:56.340job. It's essentially a government job masquerading as a private sector job. That has a very different
00:20:01.160impact, a very different impact on the bottom line of the government, right? The whole reason
00:20:05.240we want these jobs is because they generate tax revenue that we can spend on public services.
00:20:09.900Instead, these kinds of announcements, they are taking resources out, things we're not spending
00:20:14.380on things like roads and hospitals and schools and the kinds of things you expect your tax money is
00:20:18.620supposed to go towards well and the other part of it too is that the companies themselves tend to
00:20:23.660have very little in the way of oversight to maximize how many jobs they're creating i mean
00:20:28.860one big example this week has been the letter from the union representing a lot of workers
00:20:33.660at the uh stellantis plant in windsor that they're being that they're building and they're saying
00:20:37.660well hold on we were told this was going to be to create canadian jobs yet we're seeing a large
00:20:41.820number of foreign workers that are being brought in so Korean workers are benefiting from this
00:20:47.420money that the federal and provincial governments have given to Stellantis and LG and of course the
00:20:52.140government says oh well it's you know specialized skills and whatnot and then you have Oakville and
00:20:57.420Ford again a heavily subsidized EV battery plant delayed I think until 2027 so now you have a
00:21:03.660company that is for business reasons as it's permitted to do dragging its heels on this so
00:21:08.700So we're not even getting the benefit of these jobs that we were all promised.
00:21:11.920And this is happening time and time again in these cases where it's not even like that core deliverable even pans out.
00:21:19.360And it's because it comes down to the fact the government is trying to they're trying to do central planning here within it with what who's supposed to be a private actor.
00:21:25.460I mean, that's the very fact that you're setting a number saying you have to hire a thousand people.
00:21:29.760Well, companies normally hire based on what they need, right?
00:21:32.580They hire or let people go based on their economic need, what makes sense for them, what they can afford.
00:21:38.320I mean, it doesn't make sense to tell a company you have to hire exactly a thousand people or you don't.
00:21:42.840I mean, it is just completely undermines the very ethos of like a private sector company.
00:21:48.460The other thing, Andrew, that I noticed that was interesting is they mentioned in the press release that it's not just about the thousand new jobs, which, by the way, are often just jobs taken from other sectors.
00:40:37.680So what role should government have, if any, in correcting that?
00:40:41.480And if so, what's the mechanism you can get there that doesn't necessarily look like government trying to go around and manage people's family compositions?
00:40:50.640Sure. Well, I actually think income splitting could make a huge difference.
00:40:55.180And the reason I think income splitting is powerful is because it tells families, we're going to tax you as a family unit, not as individuals.
00:42:22.820You get, you know, Meghan Markle does an interview or something
00:42:25.120and talks about how, you know, children are terrible for climate.
00:42:27.700So you do see these cultural forces that try to discourage and disincentivize.
00:42:32.960And that's, I guess, the big problem is that you don't have anyone that's really leading the charge and saying families are important.
00:42:39.160And historically, that's been the domain of, I'd say, a subset of the political class that's often not really all that mainstream.
00:42:46.360That's right. And, you know, when you think about the subtle influences that culture has, there is a role for public policy to play in that.
00:42:52.440I think about schools and curriculum. You know, our kids are spending hours and hours, you know, the huge portion of their day in school is being taught curriculum by teachers.
00:43:00.600And today, I think they're being taught climate change is threatening the planet, and if you
00:43:05.520have kids, you're contributing to that.
00:43:08.500And so just letting parents choose what schools their kids go to and therefore what curriculum
00:43:16.400In Alberta, at least, if you're a parent who wants your kids to be exposed to the kind
00:43:19.880of values that would support family formation, you can choose to do that.
00:43:22.540You can send them to a classical school.
00:43:23.780You can avail yourself of school choice.
00:43:25.100We don't have that option in Ontario and a number of other provinces across Canada,
00:43:29.160and I think that could make a big difference.
00:43:30.360I don't want to do like the safe, safe, conservative leader thing of making everything about the economy.
00:43:34.720But I also do think that economic policy can be and often is family policy.
00:43:38.940Like if you're looking at inflation, cost of living, all of these things, that is a very real consideration.
00:43:44.320If you've got a family with two kids that's struggling to put food on the table as it is, the incentive to have a third kid is just not there.
00:43:50.740Absolutely not. Yeah. Look, the birth rates crowd would resist that argument a little bit because a lot of the research they do says that people fundamentally,
00:43:59.080it's not about economics it's about culture having said that i think economics impacts culture it does
00:44:03.640it does and so you know pierre paulia spoke earlier today and he said i can't remember the
00:44:07.560percentage was but there's a huge terrifying percentage of young people who've just given
00:44:11.880up completely on being able to have a home house um a house and maybe therefore a home right and
00:44:17.560if you are psychologically accepting that you will never be able to afford a house
00:44:22.680at what point do you say well i'm probably not gonna be able to have time to have kids
00:44:26.760Which means, like, is there really a point in getting married?
00:44:29.300Is there really a point in dating and having serious relationships?
00:44:32.400Like, I think that has a really corrosive impact on even the really early stage choices you make around potentially having a family.
00:44:39.760And it concerns me that today we don't even know yet, I think, what Gen Z is going to do when it comes to childbearing.
00:44:45.840And I think we could see birth rates plummet even more.
00:44:48.460Well, and Paulie has joked about it, but there's a serious point here.
00:44:51.520I mean, if you're 25 and living with your parents, your dating life is probably going to be a bit cramped.
00:44:56.500I mean, I would love to have been able to blame my dating issues on that when I was single, but I had myself to blame.
00:45:01.720But there is a real thing about if you're delaying your entry into adulthood, in a way, you're delaying everything else.
00:45:08.920And then at a certain point when you might be married and have a house and have a career, oh, you're 35.
00:45:13.280And sure, you can have kids at that age, but it's a much different calculation internally than if you're there 10 years earlier.