On this episode of The Andrew Lawton Show, we discuss the Canadian government's attempt to crack down on gun ownership in the wake of the Aurora shooting, and why it might not have been as bad as it appears.
00:20:30.120And we've seen that across the board in all provinces.
00:20:32.540All 10 provinces had increases in public sector employment relative to total employment in Canada.
00:20:38.560So, yes, private sector employment is still increasing over time, but it's not growing as fast as public sector employment is what these numbers show us.
00:20:46.200One of the challenges, and I know it's going outside the scope of this study, but you can
00:20:51.120look at these numbers, and again, just to pull them out here, in Nova Scotia, government's size
00:20:56.520relative to the economy, 63%, and in Alberta, 26.8%. So, you know, even if it's going up in
00:21:03.200Alberta, it's still nowhere near the size in Nova Scotia and Atlantic Canada generally. So,
00:21:10.400if you're looking at this as a taxpayer, not an economist, and you're trying to figure out
00:21:14.180what's the sweet spot? Is there a sweet spot? Is there a size that it should be or is supposed to
00:21:19.240be? Yes. So we know from empirical research that generally the optimal size of government is
00:21:24.800generally between 26 to 30 percent of the size of the economy. And this is when you get historically
00:21:30.320maximizing your economic growth rates when you start to exceed these levels and you can actually
00:21:35.580start hindering your economy and then you can ultimately start hindering living standards for
00:21:40.660citizens as well. So Alberta is the only province that is actually within that optimal range of 26
00:21:46.360to 30%. All other provinces are well above 30%. In fact, most provinces are well above 40%
00:21:53.260and some of them are even exceeding 50 or 60%. So they're well above that optimal range.
00:21:58.520And they're at that point where they're likely harming their economies and harming the living
00:22:03.140standards in those provinces as well, rather than helping the citizens by having that optimal range
00:22:08.640of government in that 26 to 30 percent of the size of the economy that's actually quite interesting
00:22:14.240so i i wasn't familiar with that that data you referenced so basically we do see an inverse
00:22:19.920relationship between size of government and overall economic prosperity or health yeah exactly
00:22:25.680and that analysis is based on a whole bunch of oecd countries very advanced countries around
00:22:30.400the world it's a historical analysis you can even extend the analysis a little bit more if you want
00:22:35.440to punch it out a little bit more to about 24 to 32% of the size of the economy. But generally what
00:22:41.040we've seen is that these countries around the world have actually maximized their growth rates
00:22:45.680when it is within that range. So it provides a good barometer for governments to actually
00:22:50.400track their progress and to ultimately see, you know, is there ways that we can actually
00:22:55.280improve economic growth and can we address this through government spending as the size of our
00:22:59.280economy? Are we too high, too low? Are we in the optimal range? And I think that's an important
00:23:03.760metric for governments to track over the long term so if we took the national picture here
00:23:08.720canada has a government at 40.5 percent the size of the economy what's needed to take that down to
00:23:15.600that uh range that we're talking about well it's certainly a complicated question because it's not
00:23:20.480just one level of government um you know when we're looking at the federal level of government
00:23:24.960we also have provincial governments and local governments included in that so really it's a
00:23:29.440a cohesive effort between all three levels of government to actually track their progress on
00:23:34.520this. Right now, we're really seeing an explosion in government spending and debt at really all
00:23:38.820levels of government. And that's certainly a concern moving forward. So I think it's going
00:23:43.500to be important and imperative for governments to begin to review the amount of spending,
00:23:48.860what they're spending on. Are we getting value for this money? Is this actually leading to
00:23:52.440economic growth? Is it leading to improved living standards for Canadians? Because right now,
00:23:56.660what we're really seeing is economic stagnation. And we're not seeing those improved living
00:24:00.980standards for Canadians. And just because we have more government spending isn't necessarily
00:24:05.340leading to better results for us. So I think we need to rethink what we're ultimately doing
00:24:10.280on government spending as a share of the economy and what we're spending this money on too.
00:24:15.760All right. Well, fascinating numbers. As always, Jake Fuss, Director of Fiscal Studies
00:24:19.960for the Fraser Institute. Thanks so much, sir. Thanks very much for having me.
00:24:23.420All right, we will talk to you soon as the problem is sadly not going away.
00:24:28.600One of the problems with government spending, of course, has been a question that I think goes along with government priorities.
00:24:35.300Government loves to look at ways to collect revenue, not as keen on looking at ways to stop spending.
00:24:41.800For example, the carbon tax, which I will continue beating the drum on, is going up once again on April 1st.
00:24:49.400this is an increase that the liberals have decided to make their political hill to die on
00:24:54.200and i think electorally speaking it may well be the hill they die on but let me talk about this
00:25:00.760very briefly because the left the pro-carbon tax lobby is bringing out the big guns yes here is an
00:25:08.280open letter oh yes an open letter from economists on canadian carbon pricing yes they're rebuffing
00:25:17.640the and why are they rebuffing or are they rebutting i think they're they're both they're
00:25:21.160rebutting with buffery they're they're rebuffing with buttery i don't know they are rebuffing and
00:25:26.520rebutting the carbon tax critics claims that carbon pricing won't reduce greenhouse gas emissions
00:25:33.160uh that it drives up the cost of living and is a major cause of inflation and i you can't see it
00:25:38.360in that screenshot but underneath their rebuttal of claim two uh they say oh well no you can see
00:25:44.840into the bottom there oh no no carbon taxes uh carbon pricing has caused less than 1 20th of
00:25:49.960canada's inflation well uh for starters those figures are disputed but i would also point out
00:25:54.920that it is a mechanism that is entirely optional and adds insult to injury when you are trying to
00:26:01.800get to the bottom of why the cost of living is increasing no one has said the carbon tax is
00:26:06.520single-handedly uh stoking inflation we have said that it is exacerbating it it is aggravating it
00:26:12.920It is doing more to basically strain Canadians' ability to spend money.
00:26:19.860And my goodness, we are finding time and time again examples of people that are trying to defend what is increasingly the indefensible.
00:26:27.500And this is why you have premiers in a majority of provinces, including liberal leaders, liberal premier Andrew Furey, saying, yeah, the carbon tax is not working.
00:26:36.280It's why conservative leader Pierre Polyev, of all the issues he could be talking about, he right now is doing a national tour of rallies.
00:26:45.480And he, of all of these issues, is speaking on the carbon tax.
00:26:49.200That is what he's decided to make the entire focal point of his tour, of his campaign.
00:26:54.800He's doing the axe, the tax, the spike, the hike, the, you know, say no to the car.
00:26:59.380I was trying to think of another rhyme, but I couldn't.
00:27:01.600This is, I think, quite an interesting development.
00:27:05.020it. And again, he's bringing out thousands and thousands of people collectively. I don't know
00:27:10.040if this is an issue that, like if these people would come out for anything. If he were to say
00:27:16.360this is the corned beef hash rally, if people would come out to celebrate corned beef hash just
00:27:21.400because they like Gare Polyev, or if they're coming out because it's a carbon tax. But we do know
00:27:25.580that there are thousands and thousands and thousands of people that online at least have
00:27:30.360said they are going to show up to a series of rallies that are being held across the country
00:27:35.720on april 1st this is the day the carbon tax is uh the increase is going into effect and there's a
00:27:42.360i don't have the url handy but there's some website which is tracking uh basically the
00:27:47.240national network of these protests sean do you have that url by chance i'll read it to people
00:27:52.280if they want to check it out but uh there's going to be a big one in ottawa there's going to be a
00:27:56.280big one in lloydminster which uh one of one of our alberta reporters isaac lamaru had said oh i'm
00:28:02.200going to this because he's in edmonton and he's like oh i'm gonna go to this rally in lloydminster
00:28:06.680and i'm like surely they're doing one in edmonton that you could go to that's closer he said oh no
00:28:10.920no no and i thought he was crazy and then i looked into it oh no no lloydminster is actually going to
00:28:15.560be the the big giant one here so and lloydminster is fun because it's a city that is half well i
00:28:21.880I don't know half, but it's part in Saskatchewan and part in Alberta. So you get to just like,
00:28:27.080if you're in Lloydminster, you get to just like have one foot in each province. And I mean,
00:28:30.720I guess you could do that anywhere on the border, but I don't know. I like Lloydminster,
00:28:33.580but the thing about it is that they're going to have a big thing there. And I think they're
00:28:37.640going to be trucks involved because everyone has a bit of a convoy spirit now. Here it is. It's a
00:28:43.040nationwide, I guess I could have just guessed the name of the website. It's nationwide protest
00:28:48.600against the carbontax.ca, which is they, they went for the most literal interpretation possible,
00:28:54.220but nationwide protest against the carbontax.ca. And again, I don't even know who's involved with
00:28:59.780this. So I'm not endorsing the individual people. But if you look at the map, you've got, let me
00:29:05.400just see, there's one in Vancouver, there's one in Lucerne, BC, which I'm not as familiar with.
00:29:12.260uh you've got a couple in southern alberta one in coleman one in uh highway 1 and 22 interchange
00:29:19.720uh which is perhaps not the name of the town uh lloydminster cypress county all of these uh great
00:29:26.220great well i've never been to some of them but i'm assuming they're great places if if the people are
00:29:29.900assembling to fight the carbon tax these are surely great places and then in uh toronto and
00:29:35.400a lot of convoy spirit here a lot of these are not just individual locations these are
00:29:40.140our roots. But the point is that Canadians have been, this has been a galvanizing issue for
00:29:45.060Canadians. Canadians have been keen to get involved and are incredibly, incredibly frustrated
00:29:50.480with what the government is doing. So I mean, what I said, this will be the hill that the
00:29:55.000government wants to die on. And electorally, I think it very much will. So we'll certainly keep
00:30:01.000tabs on that. And we've got reporters covering in at least three cities, the carbon tax protests
00:30:06.120going on on monday but send in your footage send in your uh your photos your videos if you're at
00:30:12.040one of these and let us know what is going on there i want to turn our attention to a
00:30:17.560controversy in british columbia where a city council is reeling after people in the community
00:30:23.400were exposed to heterodox views the uh setting for this is the city of quenelle where the mayor's
00:30:30.680wife decided to hand out to some people copies of a book that was as it happened published by0.83
00:30:35.640true north the book is called grave error it was written well it was edited by cp champion and
00:30:42.440professor tom flanagan it features a number of essays from uh some incredibly esteemed scholars
00:30:48.520and contributors that are talking about canadian history a version of canadian history that you
00:30:53.720aren't really getting even though it is a version that is supported by volumes and volumes of
00:30:59.880evidence so it's put in a book a book that was a bestseller on amazon has sold thousands of copies
00:31:05.560but has been blacklisted by several libraries and, as it happened,
00:31:09.320is now facing this ridiculous investigation, inquiry, apology by a city council.
00:35:30.480In order to know what's there, you have to dig.
00:35:33.020And there had been a few digs around the country, most recently at Pine Creek Reserve,
00:35:39.820on the border between Saskatchewan and Manitoba, in the basement of the Mission Church there.
00:35:45.820Didn't find anything. None of the digs have turned up any, you know, no bones, no shrouds,
00:35:52.140no caskets, nothing that could be linked to a burial.
00:35:57.580So absolute absence of physical evidence.
00:36:03.320I'm not saying that no child was ever buried near a residential school.
00:36:07.580You know, you can't say that, but I think the burden of proof is on the other side to say, yeah, there were burials and they haven't come forward with any evidence that is at all persuasive.
00:36:17.740They just demand that you believe on the basis of a combination of ground-penetrating radar and memories.
00:36:25.740You know, at this point, these memories are really quite old schools.
00:36:31.740The last school shut down in 1996, but most of them were shut down long before that.
00:36:36.740So when you're hearing memories, they're usually actually something that somebody heard from his father or his grandfather.
00:36:43.740You know, it could be 60, 70, even 100 years old.
00:36:49.260So they're demanding that you believe this.
00:36:51.700And if you don't believe it, you're called a denialist.