Canada’s Bottomless Piggy Bank

Are federal government spending habits making Canadians squeal? Are they really correlated to the energy industry or is this all a bunch of hogwash?


What’s Up.

According to a new report by the Fraser Institute, the Trudeau government is close to breaking the all-time record for per capita federal expenditures. The Trudeau government is expected to spend $8,337 per person in 2017. The last time Canadians saw this spending spree was in 2009, when former Prime Minister Stephen Harper set the record at $8,375 – a mere $38 difference.

Broken Down.

So what’s driving Canadian governments to be spending all that bacon? During the 2009 recession the price of oil dropped from a high of $140 the previous year to a staggering low of $41 per barrel. Canadians today are witnessing a struggling economy as the price of oil stays low. The energy industry is a large driver of the Canadian economy and government tax revenues so when industry suffers, so does Canada’s piggy bank.

Are federal government spending habits making Canadians squeal? Are they really correlated to the energy industry or is this all a bunch of hogwash?