DRAMA: Canada's Economy Just Proved the 'Doom and Gloom' Politicians Wrong

Hello everyone, welcome back.I hope your day is starting off great.The federal government just announced its spring economic update.The major good news captured in this headline on Reuters, Canada's fiscal update to show improved deficit and revenue projections.This April update puts the 2025 -26 deficit at $66 .9 billion, $11 .5 billion lower than it was in November.GDP grew by 1 .7 % in 2025, surpassing the federal budget projection of just above 1%.

Okay, so those are the headline numbers.The deficit came in lower than expected and the economy is growing faster than expected.And there's two main reasons for this.one that is under our control, meaning you and me, and one that's out of our control.Let's talk about the one that is in our control first because it's the feel -good story that we should all be proud of.And our prime minister kind of explained it like this.

You know, it started quietly.People choosing a wine from the Okanagan over one from California.Anyone had any bourbon recently?No.Sorry.planning a vacation to Prince Edward Island instead of booking flights to Florida.

Small individual acts of solidarity.but repeated millions of times.

That actually happened.Let's put some numbers to that, do a little experiment.Let's just hypothetically, one particular Canadian decides over the course of a year to change his spending habits by $100 and spend that $100 in Canada as opposed to the United States.One decision, one small act of solidarity that guides that $100 into the Canadian economy other than the United States economy.Do you know what $100 times 40 million Canadians is?That's $4 billion dollars.

That's approximately the amount that the U .S.tourism industry contracted last year and it's approximately the amount that the Canadian tourism industry experienced a booming surge of revenue last year.So those small acts of solidarity that millions of us participated in ended up being a huge positive for our economy.Now that's what we did as individuals, as Canadians, and we can be proud of that, but I said there were two main reasons.The other reason is oil prices went up.

When the budget was first forecast last November, oil prices were around $60 a barrel, and then the United States started dropping bombs on Iran, and now oil prices are about $100 a barrel.I'm talking WTI.So what does this translate into?A lot more revenue for the government.So because of those two positives, the liberals find themselves on better than expected ground, and the headline here on CBC says they plan to spend billions on skilled trades in the economic update.And this is really the only large spending measure that was introduced in this update, made possibly because our economic situation is better than expected.

The update lays out the government's plan, dubbed Team Canada Strong, to spend $5 .9 billion over five years to recruit, train, and hire between 80 ,000 and 100 ,000 new Red Seal skilled trades workers by 2030.And this initiative targets the demand that Canada expects for trades people as we embark on these nation -building projects with the intention of training people in Canada and incentivizing our young people to get into the trades.And this is a necessary thing because Canada is significantly reducing immigration levels for 2026.It's kind of a balancing act to incentivize Canadians to get into the trades, at the same time lowering immigration levels, it would be from immigration that we would, in the past,be trying to increase people in the trades.But lowering immigration is having a positive effect on affordability.

Here on rentals .ca, the average monthly rent in almost all of Canada's major cities is trending down with the reduction in immigration, less demand, and the government's focus to build more houses to increase supply.all of this over time to help with the housing affordability problem that we have in Canada.Now other than that, there's a few other smaller items.$755 million of spending over five years in sports.Reducing the Canada pension plan contribution rate from 9 .9 % to 9 .5%.

This would save an employee making $70 ,000 $133 a year.So basically this update is a steady as she goes document.The government is on a certain trajectory, a certain path, and they're not really deviating from it.And in fact, most of the major announcements on affordability and some of the big announcements have already been made over the past weeks and months.Just the other day, the creation of our own sovereign wealth fund.That is a huge announcement.

I did a separate video for that.You can watch it.I'll link it in the top right corner here.Lowering the gas tax temporarily to help with affordability because of the oil price spike.in contrast to how the opposition parties would like things to go.Let me give you their reaction to this update.

A .V.Lewis, the new NDP leader, called the spring statement a missed opportunity.The Liberal government had a big opportunity today to actively address the everyday emergency of the crisis of the cost of living for Canadians with concrete measures, new programs that would actually make people's everyday lives better.It didn't do that.So, of course, the NDP were looking for more spending, more programs, more assistance for Canadians.

On the other hand, the Conservative leader, Pierre Paul,said this.The Liberal Prime Minister has now doubled the deficit that Justin Trudeau left behind from $31 billion to $65 billion.Everyone thought it would be impossible to outspend the reckless Justin Trudeau, but then this new Liberal Prime Minister came along and said, hold my champagne.Okay, so the complete opposite there.The NDP is, you didn't spend enough, and the Conservatives are, you're spending way too much.

And the Liberals are in the middle.Now, I'm not surprised with either of those parties' positions, but with respect to Piripoliev, I'm not surprised that even though the deficit is projected to come in $11 billion lower than expected, He's still talking about the deficit is out of control, but his reactions are always negative no matter what.But I want to point out the inconsistency of his positions because basically you can summarize his positions with these two things.We have to ax all the taxes and we have to lower the deficit.If you do a simple google search on headlines, which I did just before making this video, you get this.When I google Pierre Poliev, the top two stories that appear, Poliev calls for suspension of all federal fuel taxes for the rest of 2026 and Poliev demands Kearney cap federal deficit at $31 billion.

so of course he wants to disagree with both things that are happening at the same time and I just have to point out that those two positions are not compatible if you want to axe all the taxes you can't decrease the deficit at the same time it's just it's this typical conservative populist talking points because it's popular to say let's axe all the anytime there's a problem we'll just axe the tax axe the tax on gas, axe the carbon tax, axe the tax on new houses, axe the tax the gsd on new cars, let's axe all the taxes and everything will be cheaper and will everything will be great but at the same timewe want to lower the deficit.But the inconsistency with that is when you ax the taxes, that's the source of revenue for the government.Taxation is the government's main revenue source.When you ax those taxes, the government collects less money and the deficit immediately goes up.You can't ax the tax your way into lowering the deficit.

I could do a whole video on this topic.It's mathematics.I could, like, show it to you mathematically.But basically, when you have to try and understand these type of concepts, it's sometimes good to look at the extreme example, okay?This is how it works when you try and visualize, well, what will be the effect of this?Look at the extreme example.

Let's say we cut all taxes.The government cuts all taxes, all sources of revenue.Well, then the government doesn't collect anything.It has no money.So anything that the government would spend on, any program that the government would provide, they wouldn't have any money for it.So we'd have massive, huge, out -of -control deficits.

Do you understand that?That's if we cut taxes to zero.If we put taxes up to 100%, the other extreme, then none of us would have any money, and the corporations, no one would have any money except the government.That would be bad, too.So there has to be a balance.There has to be somewhere in the middle.

And I think this is what the liberals always target.For example, let's use the gas tax again.There's a crisis now.Gas prices have skyrocketed because the U .S.is dropping bombs on Iran.

And this was unexpected.So the government introduces a measure, well, we'll take the tax off gas, but we can't take it all off.Did you know just that 12 cents a liter that the government has removed right now is going to costthem something like $3 billion for removing that for several months.Now, if you remove all the 27 cents worth of taxes that they charge on gas, you're looking at a $5 or $6 or $7 billion hit permanently.Well, that money's gone.

That revenue is gone.That'll immediately hit the deficit.The deficit will go up.So we're staying the course.The government's main policies have already been introduced.We're going to keep going with these nation building projects and the path that we're on.

And it is manifesting itself in Canadian leaders having some more pride and a little bit more backbone and a little bit more like a tough stance when it comes to the Americans like these headlines you know when you finally realize that the sky isn't falling and the Canadian economy is on a solid footing you hear Mark Carney say things like Canada won't be chasing a small deal to get U .S.tariff relief And our Prime Minister making this off -the -cuff remark that some tariff relief deals that countries sign with the U .S.are worthless.A lot of countries rushed into deals with the U .

S.They weren't really worth the paper they were written on.But the king of confidence, the new Captain Canada that summed it up just perfectly, is the Premier of Manitoba.

So I just want to be clear, when you say if they remove the tariffs, that is something that you would consider removing the ban on American alcohol.

Which tariffs?All of them.100 % of the tariffs.No tariffs, no threat of tariffs.Then you can have the booze back.

Did you see the reporter's face?I love this guy.I love this Wab Kudu.Go on, go on, please.

What you're proposing here is them removing tariffs on steel, aluminum, lumber, and autos in exchange for that one concession on American alcohol.Is that what I'm understanding?100 percent.Yeah, that's right.You know, we know that it works and we see that it is effective because it is getting their attention.But do you think that it makes enough sense that it could be hindering our ability to get back to the table here?

I don't know.Maybe we should up the ante.Maybe we should say that they need to release the Epstein files and then we'll remove the booze ban.

Yes, that's absolutely a I love that guy.I love Wab Kanu.I love him.I had to show that clip again.He just captures it.He captures the feeling of Canadians.

We should be proud and patriotic and keep doing what we're doing.Our small acts of solidarity multiplied by millions of us.Keep doing what you're doing.Keep choosing Canada.We're going to get through this.Leave some comments in the comment section.

Subscribe to my channel if you're enjoying the content.Share the video so other people, so that I can get more reach on YouTube, I guess is what I'm saying.Have a fantastic day everyone and I'll catch you all on the next one.