Trudeau Budget Ignores Lessons of the Alberta Advantage: ICBA

The 2024 federal budget proves Ottawa has learned nothing from Alberta’s remarkable economic success, as the Trudeau Government continues to overspend, raise taxes, bloat bureaucracy, and do nothing to reverse Canada’s withering economic productivity and competitiveness, says the Independent Contractors and Businesses Association Alberta (ICBA Alberta), one of Canada’s largest trade associations.

“Alberta’s economy continues to be the ox that pulls the national cart, but the Trudeau Government hasn’t learned from the success of the Alberta Advantage,” said Mike Martens, ICBA Alberta President, “The federal insistence on overspending is going to burden taxpayers for generations to come.”

Housing was a prime political focus of Budget 2024, but ICBA – Canada’s largest construction association – remains highly skeptical that the Trudeau Government’s spending will do much to move the needle on housing affordability. The supply shortage is so acute that government cannot simply spend its way out of it – it must unleash private sector builders.

“There’s a chance some of the measures in today’s budget will help spur construction of more houses. The problem is that the budget does not address the underlying issues that have caused the housing affordability and general negative economic conditions we face today: increased debt financing and expansion of the size of government,” said Martens. “Until we get those under control, Canada’s economy will not be able to increase the standard of living of the average Canadian.”

The Trudeau Government missed its opportunity to address the inherent systemic problems holding back Canadian prosperity.

“Canada faces a trifecta of closely linked economic problems: stagnant productivity, a pattern of weak business investment, and declining global competitiveness. Unfortunately, there is little in Budget 2024 that tackles these problems in a meaningful way,” said ICBA Chief Economist Jock Finlayson. “Expanding the size and cost of government won’t reverse the negative trends that are weighing on living standards and sapping Canada’s economic vitality.”