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Some end-of-summer thoughts on five problems facing Canadians:

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Food prices: Canadians heading to the grocery store are finding everything seems to be getting more expensive. It’s not their imagination. Canada food price inflation is highest in the G7 at 7.3 per cent. According to Canada’s Food Price Report, a typical family of four is expected to spend about $17,500 per year on groceries this year, up almost $1,000 since last year.

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Meanwhile in the United States, despite aggressive tariff policies that are raising the prices of many imports, the food inflation rate is just 2.9 per cent. This is a structural, “made in Canada” issue. The reasons include:

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  • Interprovincial trade barriers: The provinces just announced agreement to relax barriers for the interprovincial sale of alcoholic beverages, but other goods remain untouched, most notably policies protecting Quebec dairy farmers from competition. President Donald Trump has long made clear that dairy is a major issue in the Canada/U.S. trade negotiations.
  • Multiple layers of taxation affecting the food chain including the Liberals’ industrial carbon taxes.
  • A complex and costly regulatory environment, including labelling requirements and administrative burdens.

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The rising cost of government: There’s an old adage that “governments spend the money and the private sector pays for it.” A major factor in the rising cost of government is the 36 per cent increase in the federal public service from 2013 to 2023. When broader federal agencies are included, total employment reached 368,000. By contrast, private-sector employment grew just 15 per cent, about the same as population growth. Overall government spending reached reaching 44 per cent of GDP in 2024.

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The government/private benefits gap: Government workers get much better employment benefits than the private-sector workers who pay for them. A Fraser Institute study found that 87 per cent of government workers are covered by a pension, compared with just 22 per cent of private-sector workers. Moreover, government workers retire earlier and are much less likely to lose their jobs. Government workers also took almost twice as many sick days as private-sector workers.

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Debt interest costs: Since the federal Liberals came to power in 2015, Canada’s national debt has doubled — to a staggering $1.6 trillion. Provincial debts have also risen substantially. The Fraser Institute found that, depending where they live, Canadian taxpayers pay between $1,825 and $3,348 per year just for interest on federal and provincial government debt. In aggregate, the provinces and federal government were expected to spend $94.4 billion on interest payments last fiscal year.

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The housing crisis: The federal housing advocate’s 2024-25 report claims we have a shortfall of 4.4 million affordable homes. The Canada Mortgage and Housing Corporation estimates we need to build 3.5 to 5.8 million new homes by 2030 to restore affordability. Besides improving access to financing for young people without a previous borrowing record, this will require a multi-faceted approach, including removal of municipal zoning bottlenecks that bar “missing middle” housing such as duplexes, townhouses and low-rise apartments from established neighbourhoods.

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That’s my roundup of some key issues facing our beautiful country. At the top of the list right now is the Canada/U.S. trade agreement. Navigating our relationship with Donald Trump’s America is like trying to paddle a canoe through rock-strewn rapids — upstream! We need both courage and creativity to survive.

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Gwyn Morgan is a retired business leader who has been a director of five global corporations.

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