One Comment About Taxation – We Need Better Economic and Taxation Policies For Our Youth

 

Happy St. Patrick’s Day! I hope you’re wearing green while reading this. The man behind the celebration did not become a legend overnight. St. Patrick’s influence in Ireland – and worldwide – developed slowly over decades of perseverance, patience and long-term thinking.

 

Good economic and taxation policies work much the same way. Meaningful results rarely appear quickly, but the consequences of good – or bad – decisions eventually become impossible to ignore.

 

Recently, I was speaking with a young professional about the challenges of starting a career in Canada today.  The conversation turned to the job market and whether things were easier when I began my career. It wasn’t. When I started articling in the late 1980s and early 1990s, Canada was in the midst of a recession. The job market was tight and opportunities were slim. I was fortunate enough to finish my articles at a great local firm in Calgary, but the threat of layoffs always loomed.  Accordingly, I focused on working hard and learning as much as possible, trusting that the economy would eventually improve.

 

Economic cycles come and go – that’s nothing new. However, I’m concerned that today’s labor market may be evidence of something more structural taking hold. Statistics Canada’s latest labor force report shows employment declined by 84,000 last month while the unemployment rate ticked up to 6.7 per cent. That’s concerning.

 

Some observers might shrug off the numbers by noting that employment has not changed much over the last year. But that misses an important point: Canada’s population has grown rapidly over the past several years. Statistics Canada estimates Canada’s population remained significantly larger in 2025 than it was just a few years ago, even as growth slowed sharply and briefly reversed in the third quarter. When population grows but employment fails to keep pace, the employment rate inevitably declines.

 

And that is exactly what the latest data reveals. The employment rate has fallen by 0.4 percentage points over the past year, meaning a smaller share of Canadians are working despite the country having significantly more people. With our country already grappling with weak productivity and sluggish economic performance, that should not be dismissed lightly.

 

Even more concerning is that the unemployment rate for youth aged 15 to 24 climbed to 14.1 per cent in February, with employment falling by 47,000 in a single month. Outside of the pandemic years, youth unemployment is approaching the highest levels seen in more than a decade.  I’m seeing this first-hand with numerous friends and family youngsters who are struggling to find employment.

 

Young workers represent the next generation of taxpayers, entrepreneurs and job creators. Entry-level jobs enable young people to gain experience, build skills and eventually become productive contributors to Canada. A scarcity of those jobs is simply not good. Today’s youth employment challenges can easily become tomorrow’s fiscal challenges – compounding the ones Canada already faces.

 

And youngsters face an additional challenge: artificial intelligence (“AI”). Many entry-level jobs – the very roles that traditionally helped young people gain experience – are increasingly susceptible to automation. But it also presents enormous opportunities for those willing to adapt and develop new skills. Countries that foster innovation, investment and entrepreneurship will likely see these technologies translate into higher productivity and increased growth.

 

Unfortunately, economic growth and improved productivity has taken a back seat to simple politics. Under the current government, federal spending has surged to record levels, deficits have become a structural feature of the fiscal landscape and productivity continues to deteriorate. The latest labor market data only add to those concerns.

 

An example of simple politics driving policy is the government’s attempt to present its fiscal framework by separating the federal budget into so-called “operating” and “capital” components. While that may sound innovative, it is simply deceptive window dressing – wrapped around a cutesy but vacuous marketing phrase of “spend less to invest more”. It’s an accounting trick that any first-year accounting student can quickly see through. Debt incurred for “capital” spending (with a ridiculously generous definition of “capital”) does not magically become less real than debt incurred for “operating” spending. Our youth and their offspring will ultimately be charged with repaying that debt and cleaning up the mess.

 

Our country’s poor fiscal situation should encourage Canadians to improve their financial literacy. Democracies function best when voters understand the long-term consequences of policy choices rather than focusing solely on short-term politics or fear stoking. Better choices at the ballot box would be an inevitable result. We need politicians who understand that setting the environment for opportunity is critically important. By planting good policy acorns today, we can grow the kind of economic oak trees that provide opportunity for generations.

 

And what can greatly assist with that required fostering? Well, as I’ve advocated about for years, comprehensive tax reform. Canada urgently needs this. The growing chorus calling for reform continues to expand, including CPA Canada, CPA Ontario and, most recently, Jack Mintz and his colleagues at the C.D. Howe Institute. Their report proposed a robust package of reforms designed to reduce complexity, improve competitiveness and encourage investment, entrepreneurship and job creation.

 

For young Canadians entering a workforce that will increasingly be shaped by AI and other rapid technological change, opportunity will depend heavily on the policies we choose today. Governments cannot legislate prosperity into existence but they can certainly discourage it.

 

As I finished my conversation with that young professional, I couldn’t help but reflect again on the lesson behind St. Patrick’s legacy. Meaningful change rarely happens overnight. It takes patience, perseverance and thoughtful decisions that may only bear fruit years later.

 

As an old Irish proverb wisely puts it, “A society grows great when old men plant trees whose shade they know they shall never sit in.”

 

If Canada wants the next generation to thrive in an economy shaped by AI and rapid change, we need to start planting better policy acorns today.

 

One Comment About Leadership – Leaders, Be the Person That Encourages Good Discourse

 

Have you noticed how difficult it has become to discuss certain topics without someone getting their back up?

 

In the “old days,” the advice was simple: don’t talk about religion or politics – especially at the dinner table.

 

Today, the list is much longer: Indigenous issues, Israel/Palestine, sexual preferences, foreign conflicts and – of course – the old standbys of politics and religion.

 

While disagreements about these topics are common, what has become increasingly prevalent is labeling people who disagree with you. Such labels often include terms like “stupid,” “moron,” or worse – “racist” or “bigot.” In my experience, people who resort to such labels usually have little interest in engaging in meaningful discourse. The goal is simple: shut the other side down and insult them.

 

Unfortunately, it works. Many people don’t want to be attacked, so they simply stay silent. And when that happens, meaningful discourse is lost. Social media is particularly famous for this.

 

Leaders should never be the kind of people who label others. While you might strongly disagree with someone – or even dislike their behavior – you should not stoop to that level. Take the high road. If someone refuses to engage in meaningful discussion, move on.

 

More importantly, encourage your team to avoid such behavior. Make it clear that you value thoughtful discussion and differing viewpoints, even on controversial topics.

 

Society moves forward – and so do great teams – when people learn how to engage in respectful discourse.

 

Leaders, be the person who encourages respectful disagreement and thoughtful discussion. Good discourse is not a weakness – it’s a strength.

 

One Comment About Economics  – Property Rights in British Columbia

 

When the controversial Cowichan decision was released last year, it immediately caught my attention. For a good summary of the decision and its implications, have a look at this law firm’s summary. In simple terms, the Cowichan decision appears to give the Cowichan Indigenous band expanded property rights in certain areas of Richmond, B.C. based on “Aboriginal title.”

 

More recently, the Musqueam Indian Band and the Government of Canada signed three agreements recognizing Musqueam’s “Aboriginal rights” and strengthening Musqueam’s role in fisheries, stewardship and marine emergency management. I’ve read the agreements and would encourage you to read them as well. To be frank, I don’t fully understand the entirety of the agreements or all of their implications. However, it appears to me that the Musqueam people will have significant rights regarding certain areas of Vancouver, B.C.

 

Critics of the agreement – and of the Cowichan decision – have been quick to point out the obvious: anytime someone is granted rights over private property, those private property rights are diluted. Supporters, however, have been equally quick to emphatically state that the agreements and the Cowichan decision do not affect private property rights. I find that sentiment disingenuous.

 

Strong and predictable property rights are a cornerstone of a well-functioning economy. When those rights become uncertain or are altered, investment, development and economic activity can and will be affected.

 

It seems obvious to me that the Cowichan decision and the Musqueam agreements will indeed affect private property rights. The real question is exactly how – and whether those effects are in the best long-term interest of British Columbia and Canada.

 

I’m continuing to try to learn more about these developments. You should too. Property rights matter.

 

Bonus Comment – Often Attributed to Voltaire  – 18^th Century French Philosopher and  Writer – About Encouraging Discourse

 

“I disapprove of what you say, but I will defend to the death your right to say it.”

 

Exactly. Leaders, encourage good discourse!

 

Amazon Books: https://www.amazon.ca/Making-Life-Less-Taxing-Attention/dp/B0GGTNMV2Q/ref=sr_1_1?

Apple Books: https://books.apple.com/ca/book/making-life-less-taking-version-2/id6758958890

Hope you enjoyed this edition of 1-1-1. If you’re not already part of the In the Mood Network, now’s the time. Please sign-up today.  Whether it’s through consulting, coaching, speaking, or writing, my work is about planting acorns: deliberate, principled actions that challenge the status quo and grow into something far bigger. The goal? Bold reform. Stronger foundations. And a country that values hard work and common sense.