On the social media site formerly known as Twitter, James E. Thorne writes an obituary for the Canadian economy:
For the record.
In Canada, It Matters How the Economy Dies.
The Canadian economy is dead. It just didn’t die with a crash big enough to satisfy the models. No Lehman moment, no Covid-style cliff, just two negative quarters of GDP, years of falling output per person, negative productivity, and a private sector slowly strangled by rates and regulation while the establishment insists the patient is “resting”.
On the facts, this isn’t ambiguous. Real GDP has contracted for two consecutive quarters on an annualized basis. Labour productivity has been flat or negative since 2021. Real GDP per capita is below its pre-pandemic level. Ontario has logged its worst non-pandemic quarterly job losses since the mid-1970s. The only consistent growth is in government payrolls and compliance, not in private enterprise and investment. If that isn’t recessionary, the word is meaningless.
And yes Macklem threatens rate hikes through all of this insanity.
Yet Canada’s official guardians insist nothing fundamental has broken. The C.D. Howe recession-dating committee says the downturn is not “pronounced, persistent, and pervasive” enough. The central bank warns against overreacting to “technical” weakness. Bay Street talks about “soft landings” and “resilience”. In some quarters, the answer to this slow-motion collapse is not relief, but further rate hikes. Ignore the body on the table, we are told, the vital signs aren’t quite bad enough yet to fill out the certificate.
Their rulebook was built for heart attacks, not cancers. It excels at spotting sudden collapses in aggregate GDP and jobs. It barely registers slow organ failure: a few tenths off real GDP per capita each year, productivity edging down, ugly quarters for private-sector employment and capex offset by public hiring. None of that triggers the old alarms until the damage is permanent.
Meanwhile, Canada has been busy throwing away the advantages that once justified its prosperity. Energy and resource projects are stalled or strangled. Business investment per worker trails peers. A country rich in capital, talent, and geography behaves as if it can live forever off inherited endowments while making it harder to build anything new. That is not “resilience”. It is delusion.
Canada’s economic establishment needs to wake up.
Two negative quarters of GDP, negative productivity, falling GDP per person, historic job losses in the core province, a suffocated private sector and calls for more tightening on top, are not signs of an economy “cooling toward trend”. They are signs of an economy that has already crossed the line from stagnation into decay.
The Canadian economy is dead in the way that matters: as an engine of rising living standards and a place where private capital is rewarded for building the future. It just didn’t die loudly enough for the old definitions. The real question now is not what we call it, but how long our institutions will keep pretending the corpse is “resilient”.
As the propagandists of the mainstream media do everything they can to deflect any hint of blame from their Liberal paymasters, we can still see that things are getting worse, not better:
The federal Liberals are getting fantastic return on their investment … giving our money to the presstitutes of the legacy media in return for kid-glove treatment of the government and attack-dog tactics against the opposition:
Why Do 50% Still Support Carney? My long-winded response.
That is a question we need to take seriously.
Leger’s latest federal polling has the Liberals at 50% support among decided voters, their highest level in that firm’s tracking since the Liberals first formed government in 2015. Abacus also found the political environment still favourable for Carney and the Liberal government. So this is not imaginary. This is not just CBC fairy dust sprinkled over Ottawa. The support is real. The harder question is whether it is rational.
My answer is simple: many Canadians are not voting for results. They are voting for the illusion of relief.
Even though Carney was in the economic background since 2020 he appeared to arrive after the Trudeau years like a man in a clean suit walking into a room after the dog crapped on the floor. Trump threatened 51st State. Carney looked calm. Unlike Trudeau. He spoke in complete sentences. He had the central banker aura. For exhausted voters, that was enough. They did not examine the wiring. They just saw someone who did not seem to be setting the curtains on fire.
Carney’s appeal is not built mainly on performance. It is built on contrast. Compared with Trudeau’s theatre-kid government of slogans, selfies, and moral lectures, Carney looks serious. But “serious” is not the same as right. A surgeon can look serious while operating on the wrong leg.
Canada’s economy is now weak enough that Carney himself has had to acknowledge ugly economic data. Reuters reported him addressing Canada’s technical recession and warning that some data will be “uneven” “ah ah ah” as the government pushes through policy changes. The Wall Street Journal reported GDP weakness, including two consecutive quarterly contractions, while Carney framed the pain as part of a broader economic rebuild.
That is where the sales pitch gets slippery.
When the economy weakens under Conservatives, it is called failure. When it weakens under Liberals, it becomes “transition”, “restructuring”, or “long-term transformation”. Same corpse, nicer label on the toe tag.
The deeper problem is that Canadians were never really asked whether they wanted Carney’s ideology. They were sold competence, not doctrine. They were sold expertise, not a governing philosophy that puts the state, regulators, climate finance, and elite managerial planning at the centre of national life.
Nobody knocked on doors saying, “Would you like a prime minister who believes markets should be bent around elite-defined social and environmental values?” No. They said, “He is smart. He ran banks. He knows Trump. He will steady things.”
That is not a mandate. That is a branding exercise.
And this is why the Conservative attack has to get sharper. Not louder. Sharper.
Calling voters stupid is a dead end. Many Carney supporters are not stupid. They are terrified of Trump. They are tired. They are anxious. They are looking at housing, debt, food prices, crime, productivity, health care, and a country that feels smaller than it used to, and they want someone who looks like an adult. Carney gives them the visual. He gives them the voice. He gives them the vibe.
But vibes do not build houses. Vibes do not raise productivity. Vibes do not lower debt. Vibes do not attract investment. Vibes do not make young Canadians believe they have a future.
The Carney government’s strongest weapon is not success. It is emotional permission. It lets Liberal voters tell themselves they have moved on from Trudeau without admitting the Liberal machine remains fundamentally intact. Same operating system, cleaner looking wallpaper.
That is why 50% still support him.
They are not endorsing the results. They are postponing the verdict.
Canada does not need a better-spoken manager of decline. It needs a government willing to reverse the policies that caused the decline in the first place.
Because a tight ship headed toward the rocks is still headed toward the rocks.
