𝐀 𝐡𝐢𝐧𝐠𝐞 𝐦𝐨𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐂𝐚𝐧𝐚𝐝𝐚’𝐬 𝐟𝐢𝐬𝐜𝐚𝐥 𝐜𝐡𝐨𝐢𝐜𝐞𝐬. Defence spending and the coming tipping point.

Ajouté : 2026-05-27

[00:00:00]So, the Prime Minister's sort of set the stage, I think, very effectively talk in terms of talking about a hinge moment.

[00:00:06]Like so, the context is set. We need capital investment to boost productivity. We need trade diversification. We've talked about it for decades. Now, President Trump makes it that inevitable. We have, you know, hot wars, so to speak, in Europe and the Middle East. We need to move towards those NATO targets. Like so, we have a hinge moment. Where do we get to the tipping point, you know, where people can actually see we don't have the revenues? Like we're going to actually have to do something to you know, our tax system to generate more revenues beyond just, you know, growth.

[00:00:34]>> Well, Gavin, I think it it it puts the focus on what we talked about in another episode, which is the reallocation. So, what are you going to cut from the existing base of spending Yeah. to spend on on the new priorities?

[00:00:44]Uh we had a flavor of that in the first budget and very little discussion of anything since. It's got to be beyond the operations of government. I mean, I get really tired of people thinking we can just keep cutting government to get there. You know, our spending's now past 16% of GDP. The the government operations isn't going to get you back to 12, 13% or get you to your NATO target.

[00:01:04]Other things that we think are really important programs will probably have to be on the table for discussion. So, either way, I think this government's going to have to have some uncomfortable discussions with Canadians about how do you achieve the big, really important hinge moment-related policy objectives >> Yeah.

[00:01:21]and do it within a fiscal structure that remains sustainable.

[00:01:27]>> [music]