Your Incompetent Government and You

A serious country would not tolerate this:

The Opposition is questioning Veterans Affairs Minister Jill McKnight’s fitness after she sat blankly under routine questioning at a committee hearing. Asked for details of a signature program in her own department, McKnight sat speechless until she was pointed to scripted remarks in a briefing binder: “Do you know?”

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A federal wanted list of foreign fugitives numbers 32,000 people, the Canada Border Services Agency disclosed yesterday at the Commons public safety committee. Conservative MP Frank Caputo (Kamloops-Thompson, B.C.), a former Crown prosecutor, expressed astonishment at the figure: “I beg your pardon? There are 32,000 warrants?”

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AUDIT: @CanBorder responsible for enforcement of gun laws has “gaps” in management of own firearms.
“We found no evidence of formal regional oversight activities related to the safeguarding and inventory tracking of firearms and ammunition across the Agency”… pic.twitter.com/OQsyzA9JDY

— Holly Doan (@hollyanndoan) October 23, 2025

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No one else feels the same:

It is “not an easy job” taking calls from taxpayers, Canada Revenue Agency Commissioner Bob Hamilton yesterday told the Commons public accounts committee. Hamilton praised the Agency despite two audits in eight years that concluded 1-800 call centres were costly, slow and incompetent: “We think we’re doing a pretty good job.”

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Watching an economy tank in real-time:

Between bad trade calls and looming deficits, Canada is driving money out just when it needs it most.

Canadians voted for relative continuity in April, but investors voted with their wallets, moving $124 billion out of the country.

According to the National Bank, Canadian investors purchased approximately $124 billion in American securities between February and July of this year. At the same time, foreign investment in Canada dropped sharply, leaving the country with a serious hole in its capital base.

As Warren Lovely of National Bank said, “With non-resident investors aloof and Canadians adding foreign assets, the country has suffered a major capital drain” — one he called “unprecedented.”

Why is this happening?

One reason is trade. Canada adopted one of the most aggressive responses to U.S. President Donald Trump’s tariff agenda. Former prime minister Justin Trudeau not only imposed retaliatory tariffs on the United States but escalated tensions further by targeting goods covered under the Canada–United States–Mexico Agreement (CUSMA), something even the Trump administration avoided.

The result was punishing. Washington slapped a 35% tariff on non-CUSMA Canadian goods, far higher than the 25% rate applied to Mexico. That made Canadian exports less competitive and unattractive to U.S. consumers. The effects rippled through industries including autos, agriculture and steel — sectors that rely heavily on access to U.S. markets. Canadian producers suddenly found themselves priced out, and investors took note.

Recognizing the damage, Prime Minister Mark Carney rolled back all retaliatory tariffs on CUSMA-covered goods this summer in hopes of cooling tensions. Yet the 35% tariff on non-CUSMA Canadian exports remains, among the highest the U.S. applies to any trading partner.

Investors saw the writing on the wall. They understood Trudeau’s strategy had soured relations with Trump and, given Canada’s reliance on U.S. trade, that the United States would inevitably come out on top. Parking capital in U.S. securities looked far safer than betting on Canada’s economy under a government playing a weak hand.

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The trade story alone explains much of the exodus, but fiscal policy is another concern.

Interim parliamentary budget officer Jason Jacques recently called Ottawa’s approach “stupefying” and warned that Canada risks a 1990s-style fiscal crisis if spending isn’t brought under control. During the 1990s, ballooning deficits forced deep program cuts and painful tax hikes. Interest rates soared, Canada’s debt was downgraded and Ottawa nearly lost control of its finances. Investors are seeing warning signs that history could repeat itself.

After months of delay, Canadians will finally see a federal budget on Nov. 4. Jacques had already projected a deficit of $68.5 billion when he warned the outlook was “unsustainable.”

National Bank now suggests the shortfall could exceed $100 billion. And that doesn’t include Carney’s promises, such as higher defence spending, which could add tens of billions more dollars.

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Deficits of that scale matter. They can drive up borrowing costs, leave less room for social spending and undermine confidence in the country’s long-term fiscal stability. For investors managing pensions, RRSPs or business portfolios,

Canada’s balance sheet now looks shaky compared to the U.S. economy.

Add in high taxes, heavy regulation and interprovincial trade barriers and the picture grows bleaker. Despite decades of promises, barriers between provinces still make it difficult for Canadian businesses to trade freely within their own country.