Industry Minister Mélanie Joly has reiterated, in a House of Commons debate, Ottawa's plan to inject billions in federal subsidies to prop up automakers Ford, GM, Honda, and Toyota.
"To continue their operations and create jobs."
The scheme reeks of economic desperation, not strategy. Under Carney's post-election playbook, the Liberals are ballooning the 2025-26 deficit to $68.5 billion, 2.2% of GDP. It could go much higher.
Auto bailouts add another layer of spending, piling billions onto the national debt. It's classic Liberal (and Conservative) alchemy—trying to turn economic lead into gold through failed fiscal incantations.
Joly, like ministers before her, is pulling dollars from thin air and dumping them on industry to buy votes and stave off catastrophe—in the wake of Trump tariffs. In the end, taxpayers suffer.
Building vehicles in Canada, whether gas-powered or electric, will remain mostly unsustainable.
History's ledger reveals a pattern where economic crises like Weimar Germany's hyperinflation, Argentina's serial defaults, and the U.S. stagflation of the 1970s were significantly influenced by government policies that included excessive spending, often beyond sustainable repayment capacities, compounded by other factors.
Keynes himself cautioned against endless stimulus—but Ottawa doesn't listen.
Canadian productivity growth is among the lowest in the G7, while debt servicing costs consume a massive amount of government funds—around 8.5% of total revenue.