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Economy

On this Canada Day, Canadians face calls for change — and economic historians have been trying to adjust – CBC.ca

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This week’s deadly heat wave, with its new record temperatures, is just one example of how the country’s economy seems to be embroiled in change this Canada Day.

Urgent plans to speed the switch to electric cars and the painful process of moving away from Canada’s dependence on carbon-producing fuels are part of a longer list of economic earthquakes.

The country is currently adapting to a string of extraordinary events:

  • A recession caused by a once-in-a-lifetime pandemic.
  • The return of inflation after a decades-long absence that some expect will lead to a rise in interest rates.
  • Government intervention in the economy not seen since the decades after World War II. 

But as difficult as it is to be sure of the country’s economic future in such changing times, historians are struggling to re-examine Canada’s economic past.

As former economic heroes, such as Henry Dundas, Egerton Ryerson and John A. Macdonald, are knocked off their pedestals, the discovery of Indigenous children’s unmarked graves and the past year’s Black Lives Matter movement are opening people’s eyes to long-standing economic injustices.

The founding narrative

One of the leaders of that re-examination is Angela Redish, an economic historian and a professor at the University of British Columbia, who, like most who studied Canada’s economic history in past decades, was educated almost exclusively on “the founding narrative” of the European extraction of Canada’s resources through the St. Lawrence and its role in creating a powerful industrial economy. 

But as Redish began doing her own research, she also began to realize what the economic history texts had left out.

“Everybody knew about the Treaty of Paris and what that meant for the Canadian economy,” said Redish, referring to the 1763 agreement that turned a big chunk of North America over to Britain.

“All the treaties of the Indigenous nations weren’t even in the books,” she said.

The deaths of children at Canada’s residential school is a tragic reminder of another side of Canada’s economic history. (Evan Mitsui/CBC)

Canadians weaned on the heroic narrative of explorers discovering abundant empty lands and building a rich country from sea to sea to sea may have been shocked by recent revelations that Indigenous children were abused and died here.

But the brutal displacement of the land’s original people by European settlers is well known to historians. It is a process now being described by the Canadian Historical Society as genocide

That simply hasn’t been the focus of the traditional story, said Kris Inwood, an economic historian at the University of Guelph.

“It’s unfortunate that it takes the kind of spectacular spectacle of unmarked graves being discovered to bring it to people’s attention,” Inwood said in an interview this week. “But it’s clearly a good thing for people to have their awareness drawn to, by our standards today, how horribly people behaved in the past.”

In 1493: Uncovering the New World Columbus Created, author Charles Mann describes a densely populated Indigenous North America devastated by the spread of European diseases first introduced by Spanish colonizers, leaving the continent appearing far less populated than it had once been.

The extent of that disease effect, though, is still being disputed by economic historians.

As Inwood points out, death rates in Canada were high for everyone in the 1800s and children suffered the most, but no one began collecting mortality data until the 1920s.

Recent research by University of Victoria economic historians Donna Feir, Rob Gillezeau and Maggie Jones disputes the idea that Indigenous people were weakened before Europeans came to the Great Plains and killed off the bison.

World’s tallest people

“Once the tallest people in the world, the generations of bison-reliant people born after the slaughter were among the shortest,” they wrote in a much-quoted paper on the plains inhabitants.

Not only that, but being deprived of the means of their economic success had a long-lasting effect.

“Today, formerly bison-reliant societies have between 20 to 40 per cent less income per capita than the average Native American nation,” says the paper.

As one of the authors of the popular textbook A History of the Canadian Economy, Herb Emery has an intimate view of how changing perspectives can alter the understanding Canadians have about their economic history.

“The stories we tell are about the importance of property rights and legal systems to ensure an efficient and successful capitalist economy,” said Emery in an email. “The blind spot is in the initial expropriation.”

Before Europeans came and killed off the bison, the Indigenous people of the Great Plains were among the tallest in the world. After the slaughter, they were the shortest. (Three Lions/Getty Images)

As Feir points out, while the system of declaring ownership may have been different and was sometimes disputed in border conflicts, Indigenous groups had well-established title to agricultural or hunting lands. When the Europeans arrived with their much celebrated property rights, they simply ignored the existing property rights.

“So to talk about an abundance of land is bizarre,” she said.

In fact, as Gillezeau points out, the ejection from their traditional lands that provided a good living cannot be separated from Indigenous peoples’ ability to fight off European diseases.

Right up to today, poverty leads to negative health outcomes.

As shown with the plains bison hunters, Gillezeau said, the loss of the things that made them economically successful can have a lingering effect that’s been shown to last generations.

Improving the lives of many Indigenous people and other people of colour can be expensive and difficult.

Finding a shared narrative

While economists may differ on which events are most important, Gillezeau said he has not seen a backlash in Canada against the idea of expanding our concept of economic history. But the fact that the revisions are almost entirely being made by settler scholars may skew those decisions.

“The profession is not as diverse as it should be, and if you don’t have voices at the table, the conversation goes a lot more slowly,” said Gillezeau. “Having more Black economists is going to change the profession.” 

Redish has the same concern about the lack of Indigenous students in economics, something she is trying to rectify at UBC.

Contrary to the popular idea of history being a single and unchanging narrative, the economic historians I spoke to described it as a dynamic process that must take account of new developments, like climate change, new historical understandings and changing public values. It is a process that takes time.

“We should be working on a shared narrative,” said Redish. “I think that’s what we have to do. But it’s very challenging.”


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Economy

B.C.’s debt and deficit forecast to rise as the provincial election nears

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VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.

Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.

Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”

The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.

Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.

“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”

Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.

Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.

Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.

B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.

The election is expected to be called on Sept. 21, with the vote set for Oct. 19.

“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”

Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.

Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.

The premier said that now is not the time to reduce supports and services for people.

Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.

Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.

This report by The Canadian Press was first published Sept. 10, 2024.

Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.

The Canadian Press. All rights reserved.

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Economy

Mark Carney mum on carbon-tax advice, future in politics at Liberal retreat

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NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.

But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.

He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.

Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.

Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.

Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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Economy

Nova Scotia bill would kick-start offshore wind industry without approval from Ottawa

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HALIFAX – The Nova Scotia government has introduced a bill that would kick-start the province’s offshore wind industry without federal approval.

Natural Resources Minister Tory Rushton says amendments within a new omnibus bill introduced today will help ensure Nova Scotia meets its goal of launching a first call for offshore wind bids next year.

The province wants to offer project licences by 2030 to develop a total of five gigawatts of power from offshore wind.

Rushton says normally the province would wait for the federal government to adopt legislation establishing a wind industry off Canada’s East Coast, but that process has been “progressing slowly.”

Federal legislation that would enable the development of offshore wind farms in Nova Scotia and Newfoundland and Labrador has passed through the first and second reading in the Senate, and is currently under consideration in committee.

Rushton says the Nova Scotia bill mirrors the federal legislation and would prevent the province’s offshore wind industry from being held up in Ottawa.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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