FROLITICKS

Satirical commentary on Canadian and American current political issues

Just Who Are These American People Supporting Trump Administration’s Policies?

I keep reading and hearing about the American public whom the Trump administration appears to listen to and who in turn supposedly lend their support.  Some have speculated that they are those who claim to be part of the so-called Make America Great Again (MAGA) movement.  However, the MAGA supporters still only represent a fraction of the Republican Party.  Based on recent polls in the U.S., which put Trump’s approval ratings at an all time low, it certainly doesn’t appear to include the vast majority of independent voters.  As for the “big, beautiful bill” recently passed by the Republicans, at the town halls held by Republican Congressional representatives the negative and furious reactions by their constituents don’t appear to be very favourable.  The majority of Americans are now also beginning to question the administration’s tariffs and immigration policies.  It would appear the emphasis on dealing with inflation, remembering Trump’s references to the high cost of “groceries”, has now taken a back seat to his other priorities.  This at a time when the real impact of high tariffs on imports from India and China have yet to be fully felt by American consumers.  Many Americans, particularly those in states bordering with Canada, are not happy with how the Trump administration is dealing with its northern neighbour and long time friend, ally and trading partner.

Prior and during the last election, there is little doubt that some Americans were concerned about numerous federal agencies, especially with respect to their credibility and trust wariness.  Instead of restoring their trust in agencies such as the Federal Reserve Board, the Centers for Disease Control and Prevention, the Bureau of Labour Statistics, the Federal Emergency Management Agency, and the Justice Department to name a few, we now see the administration attempting to dismantle and weaponize these independent bodies.  Trump is replacing their heads with politically loyal hacks with little or no expertise in leading or running such institutions.  By doing this, the administration argues that the ability of the President to exercise his hiring and firing policies ensures political accountability for them to the American people.  Again, who just are these American people?  While there are always ways to improve their operations, attacking independent bodies in this manner tends to undermine their important mandates which are intended to be apolitical and based on expertise and research-based objectivity.  No other administration in U.S. history has ever assailed these institutions in the way that the Trump administration is proceeding to try to bring them into line with his political thinking.  Furthermore, there is no clear evidence of any form of so-called “deep state” existing among independent bodies.

Of course, within the federal government, there are senior positions that each new administration will fill with its own politically motivated appointments, normally leaving the remainder of each department’s operations under the capable hands of career civil servants.  One can only hope that confirmed appointees are credible and experienced administrators in what ever mandate they will represent.  Unlike in Canada, the appointment of hundreds of senior administrators is left up to the President, resulting in a major turnover at the top with each new administration.  Generally, in Canada the bulk of senior federal officials are career bureaucrats with the applicable administrative capabilities, frequently serving under governments of varying political stripes.  For this reason, the Canadian public service is somewhat admired among democratic countries and often put forward as a good administrative example for governments.

There is little doubt that Trump was attempting to appease his base, in particular MAGA, by instituting his policies via many executive actions in his first hundred days in office.  Meanwhile, the Republican dominated Congress sat on the sidelines watching it all happening and has failed to address some of the more controversial executive orders, some of which most likely are unconstitutional.  So just who are these members serving at this time?  It certainly doesn’t appear to be their own constituents based on the resulting outrage being witnessed throughout the country, even in red states!

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Unlike the American DOGE Initiative, Canada Can Better Tackle Government Cuts

The initiative led by Elon Musk in the so-called Department of Government Efficiency (DOGE) has turned out to be a major disaster with not much impact on the federal government’s overall debt.  It certainly is an example of what not to do for a planned Canadian government initiative to curt federal government spending and reduce its current debt.  Prime Minister Mark Carney has embarked on one of the most ambitious public spending reviews since former Prime Minister Jean Chrétien and his finance minister Paul Martin balanced the budget in the 1990s.  Carney’s government wants to cut operational spending by 7.5 per cent for the 2026-27 fiscal year, 10 per cent the following year and 15 per cent in 2028-29.  According to the CBC, the Institute of Fiscal Studies and Democracy at the University of Ottawa estimates that, when those areas are carved out, the government is targeting a pot of money that is about $180 to $200 billion of the $570 billion it will spend this fiscal year.  Some former senior government officials believe that this is doable, but with some caveats. 

First, rather than an arbitrary across-the-board cut, a realistic program review will look at whether the existing program continues to serve a real need, especially when it comes to public services.  Secondly, it’s mostly important to first determine where you cut — rather than by how much.  Thirdly, there may be means to cut operating expenses by looking for ways to employ new technologies, including those involving artificial intelligence and automation.  Fourthly, there is also room to cut the use of consultants and outside contractors, but doing so could cut off access to valuable expertise.  In addition, extra replacement training of public servants could occur, but would be an added cost factor.

Interestingly, Carney has said that there will be no cuts to transfers to the provinces for things like health and social programs, nor would he cut individual benefits such as pensions and Old Age Security payments.  Key programs rolled out by former Prime Minister Justin Trudeau’s government such as child care, pharmacare and dental care are also spared.  These of course are high cost, almost untouchable programs, with a great deal of the electorate’s support.

Unlike in the DOGE exercise, federal public servants in Canada have strong union representation across the public service and will require consultation with union officials during the review process.  The unions have already expressed concerns about potential cuts to the workforce, but recognize that the review must address this issue as it will be difficult for the government to avoid cutting staff because wages, benefits and pensions are such a large part of the operating budget.  As in past initiatives, some cuts can be made through attrition.  However, serious cuts would involve the removal of some positions, moving staff to other programs or retraining for other government jobs.  The unions will argue that any program cuts should not be at the expense of certain key services to the public.

Previous program reviews have been undertaken given a government’s mandate to respond to a national crisis, such as the servicing of a growing government debt.  Given that the most fundamental issue of the last Canadian election was Donald Trump’s attack on the current U.S.-Canada trade relations and our sovereignty, Canadians are much more open to suffering through cuts then they were five to 10 years ago.  Due to the DOGE methodology of arbitrary cuts to departments and agencies, the ramification of those cuts to important public services is just now being felt by Americans.  Canada does not want to incur the same public wrath that the Trump administration is and will continue to experience as a result of program and service cuts.  As well, serious errors were made in the DOGE accounting process, often overestimating the actual cost savings as a result of government cuts.  Canada does not want to repeat such mistakes and must offer an open and accountable process during any program review.

The one most important factor in my view from past experience in federal program reviews is that imposing across-the-board cuts can quickly paralyse the effective delivery of certain important programs, especially those which are regulatory in nature.  While a ten percent cut to a program’s budget may not seem to be much, for some agencies this may be enough to hinder or negate its effective program delivery.  Agencies and departments which enforce regulatory requirements, such as those in occupational health and safety, transportation, and the environment most likely would be greatly compromised.  In some cases, program delivery becomes so ineffective that one could argue that the program is better off simply not existing.  This becomes the conundrum that any program must entertain and could endanger public safety.

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Why the Fraser Institute’s Interpretation of Public Sector Stats in Canada is Misleading

When we think of government employment and operations, we tend to think of employees working away in government offices — i.e. some huge hidden bureaucracy.  Back in June 2015, the Fraser Institute released a report which noted that the public sector share of employment starting in 1992, declined from 26.1 percent to 22.3 percent by 2003.  Subsequently, it also noted that there had been an increase, with a peak of 24.4 percent reached in 2010 and then a slight decline to 24.1 percent by 2013.  As a result, persons looking at the report would immediately use such information to highlight that one out of four jobs in Canada are in government at different levels: federal, provincial and local.  The fact of the matter is that this perception is somewhat misleading depending on which definition of public sector activity one is using.  They then allude to U.S. stats which suggest that one in eight jobs is in the public sector. This comparison is misleading given the differences in public sector definitions between the two countries and the various activities which employ greater private sector resources in the U.S., such as in higher education and health care.

In Canada, besides public administration, public sector entities are found in the form of numerous government business enterprises (GBEs), active in various industries such as utilities (e.g., hydroelectricity), retail trade (e.g., liquor boards and cannabis stores), transportation (e.g., ports), finance (e.g., deposit insurance), leasing (e.g., convention centres) and recreation (e.g., nature parks).  For example, because of universal health care and health insurance in Canada, the vast majority of medical services are publicly funded, and health practitioners are deemed to be part of the public sector.  In addition, colleges and universities are primarily publicly funded.

Subsequently, the large size of the general government in Canada is primarily because of extensive social protection programs combined with the universal health care and public education systems.  In 2022, Statistics Canada reported that the expenses in 2021 of the 6,135 public sector units (as defined by the agency) amounted to 48.6% of the total gross domestic product (GDP), with consolidated general government expenses alone representing 44.9% of GDP.  These stats would place Canada’s public sector share of the economy in the same allocation as countries such as Great Britain, Sweden and Norway for example.

There is no doubt that the nature and range of industries in which the public sector is involved underlines its economic breadth and influence in Canada.  The public sector represents many workers who provide valuable services to Canadians, including health workers, teachers, firefighters, paramedics, hydro workers, park wardens, police officers, inspectorates, public transit workers, etc., etc.  As one can see, many public sector workers are employed in what are deemed as essential services.  To maintain these services, there has to be an adequate number of experienced and qualified public sector workers.  Wages and benefits have to be competitive with those offered in the private sector in order to attract and retain skilled workers, especially in the current period of labour shortages.

On the one hand, the Fraser Institute is known to be a pro-business entity and tends to take a more anti-government stance in its research and analysis.  On the other hand, in the most recent report released by Statistics Canada in 2021, it noted that public sector expenses (48.6% of GDP) saw a significant reduction from their unprecedented high levels reported in 2020 (58.8% of GDP).  Governments at all levels are attempting to reduce their annual debt levels, back to levels found prior to the pandemic.  It can be anticipated that public sector employment is most likely going to decline in post-pandemic years, particularly with the reduced need for certain services and programs introduced by governments during the pandemic.

To imply that public sector employment in Canada is somehow out of whack, is to ignore the importance of the role of governments in the country at all levels.  Given the scope of the Canadian public sector, the numbers are entirely reasonable and acceptable.

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U.S. Federal Government Leaves Public Servants and Their Communities in Economic Turmoil

Well, here we go again! Back in January 2018, I blogged briefly about the then federal government shutdown in Another U.S. government shutdown – is this anyway to run a country?

Now, we are almost a month into the longest shutdown of government services in U.S. history, all thanks to President Trump’s insistence on funding for a larger wall, barrier or whatever at the Mexican border. As a result, over 800,000 federal public servants have been furloughed or are working without being paid.  Needless-to-say, this is having a negative impact on most workers and an economic impact in the local communities in which they live.

Imagine, the shutdown is affecting security at airports with TSA agents calling in sick or turning to temporary jobs to make ends meet. Air traffic controllers are being forced to work extra hours because of no new personnel are graduating from their training institute.  Food safety inspectors were unable to carry out their daily inspections.  National parks, while open, have no park wardens or other employees to oversee their daily operations, often putting visitors at risk.  Homeland security personnel are also affected, including Coast Guard workers.  Farmers are forced to wait for government subsidies.  These are only a few of the key government services that are affected.

As for local communities, federal government jobs represent many of the better paying jobs in the communities. Normally fairly stable, federal workers contribute to local economies by buying homes, paying municipal taxes, volunteering, purchasing local goods and services, etc., etc.  Many public servants are highly educated and have chosen public service over working for often higher wages in the private sector.  They have chosen public service careers because of relative certainty, good pension plans and health insurance, perks that are harder to come by as an employee in corporate America. In addition, an increasingly diverse public service offers an equalizer for African-Americans and women, who are far more likely to earn high salaries working for the government than they would with a company.

Whether one supports public servants or not, the fact is that they play an increasingly major role in modern society. The on-off-again shutdowns of recent years do nothing to enhance the reputation of the government to potentials hires.  The loss of many important government services and economic contributions is not what the U.S. needs at this time. Experienced and highly-skilled employees are reconsidering their future employment options, threatening to create the potential loss of talent at a time when the federal government needs it the most.  Congress and the President need to get on with the business of governing, sooner rather than later.

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Another U.S. Government Shutdown — Is This Anyway to Run a Country?

Well, here we go again! The U.S. federal government is shut down once again, leaving hundreds of thousands of Americans without access to government services across the country and thousands of civil servants without pay. It all seems rather incredulous!  Congress couldn’t agree on a budget needed to keep the government running.  As in the past, Washington politics is playing its usual role. Too often, non-budget related policies are tied into budgetary proceedings, with both federal parties attempting to coerce the other party to support certain political positions.

One could not see this happening in Canada which operates under a parliamentary system. Every year, the Government tables a budget for the following year which is then reviewed in advance by a finance committee in both the House of Commons and the Senate.  Now, the passage of budget bills is considered as a ‘vote of confidence’ in Parliament for the ruling party.  Majority governments normally have little problem passing budgets between elections.  However, in the case of minority governments, failure to secure sufficient votes from the opposition parties will lead to the dissolution of Parliament.  If the opposition parties can agree, they could subsequently form a coalition government.  If not, an election has to be called.  In the interim, the government continues to operate until a new ruling government is formed post-election.  Most importantly, the budgetary process is carried out in an atmosphere of decorum based on past conventions.

The American process on the other hand is carried out with a great deal of incivility by both parties, and in today’s climate by the President. Attempting to garner public support for their position, Congressional parties and the President are blaming the other side for the shut down.  Instead of debating matters in Congress, both sides argue their positions in the main and social media.  The entire process becomes an unruly mess.  What’s worst, Senators and House Representatives continue to be paid, while government workers have to wait to be paid once the shut down is over.  Several social, health and environmental protection services are affected during the duration of any shut down.  Examples of such services are too many to list here.  Unlike under Canada’s parliamentary system, there do not appear to be any real consequences for the governing party in Congress — each vying for political points. Maybe, it’s time to take a non-partisan look at the current budgetary processes.  Otherwise, the American public will have to again endure future government shut downs.

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When It Comes to the Public Service – Politicians Always Look to the Easy Answers

Well, here we go again. In both Canada and the U.S., certain political factions are continuing to treat public servants as “costs” rather than as “assets”. They believe that all one has to do to get deficits under control and to balance budgets is cut public service jobs and freeze public servants’ wages. Even better, let’s just make the public service operate more like private corporations — a crazy notion that I previously had blogged on.

However, the fact of the matter is that many of government’s human resource problems have arisen from changes in the nature of the public sector workforces and a lack of political will. While clerical jobs once dominated the bureaucracy, professional occupations do today. Governments need to recruit and keep employees to fill those posts. Current job classification systems prevent agencies from aligning compensation with what comparable occupations in the private sector pay, undermining government’s ability to attract top performers. Political motivated attacks on the public service only help to increase what have already become stressful working conditions. This in turn has increased concerns over the mental health of senior managers and public sector employees, and subsequent lost of productivity.

Cuts in operating budgets of various departments/agencies often lead to program and service delivery becoming “dysfunctional”, no longer able to effectively serve their respective clients. Since this primarily is a consequence of token cuts, one has to ask oneself why a government would continue to support the existence of reduced programs and services. Maybe it’s time that politicians bite the bullet and make some hard choices. Governments need to do their evaluations and eliminate programs and services that they believe are no longer essential. There will no doubt be an outcry by affected interest groups, including unions, and various supporters of such programs. However, governments will just have to have the political will and stamina to face such opposition, something that hasn’t been too much in evidence in the past.

Moreover, governments will no longer be asking public servants to do more with less and to undertake the near impossible. While such program elimination will result in a “leaner and meaner” public service, it will also lead to ensuring adequate resources and support are provided to ensure the effectiveness of the essential programs and services. After all, is it not the role of government to make the hard choices? Once done, politicians must stop simply attacking public servants, get on with modernizing the public service to meet its future challenges, reduce unnecessary contracting out of services, and improve government’s ability to attract top performers.

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Why Performance Pay Doesn’t Work in the Public Service

Recently, both federal administrations in Canada and the U.S. have reintroduced plans to implement merit-based pay systems in the public service. Every few years, discussions about the introduction of a more performance-based pay system for public servants surface. This year is no different. From past experiences the problem is that, for the non-executive groups in particular, the implementation of such pay systems doesn’t work very well — if at all!

In the U.S., the Partnership for Public Service has proposed a plan to introduce a federal pay system that would compensate workers at a level on par with their cohorts in the private sector, with extra pay for only those who perform above expectations. Federal-worker unions have opposed the plan, saying the current pay system has served the nation well. The government has experimented with pay-for-performance programs in the past, particularly with the Defense Department’s National Security Personnel System, which Congress canceled in 2009. According to unions and other federal-worker groups, that program failed in part because employees did not trust that it would work fairly.

In Canada, the federal Treasury Board, which oversees pay structures for federal departments, recently introduced pay-for-performance programs for the non-executive categories of public servants. However, federal unions are challenging the Conservative government’s new performance management regime, touted as a “new beginning”. The government claims it will make Canada’s public servants more productive and efficient while weeding out poor performers. The Professional Institute of the Public Service of Canada has filed a policy grievance on behalf of 17 unions against key provisions of employees’ new mandatory performance agreements, saying these violate collective agreements. The unions are also concerned that the performance appraisal approach is unfair, biased and flawed, often depending on the personal relationship between managers and departmental staff.

Proposing performance-based compensation systems to bring the public sector into line with private sector approaches is like comparing eggs and apples. So much of what the public service does is in immediate response to the policies and politics of the government of the day. This more-or-less precludes any reference to a genuine “bottom line” when assessing results and achievements in meeting organizational objectives. This leaves managers with a need to simply assess employees’ contributions to meeting daily operational activities and their ability to effectively adjust to the whims of one’s political masters. Even measuring short-term efficiencies can be tricky, if not impossible, under such circumstances. Measuring long-term effectiveness is even more difficult given the ever present winds of political change.

Setting up a valid and legitimate merit-based appraisal system is the first and foremost ingredient for any potential success. Ensuring that managers are adequately trained in order to respect and maintain such a system on a continuing basis is the next most important requirement. Finally, the system’s development and implementation has to involve consultations with those employees who are directly affected, otherwise there can be no employee buy-in. Without these three key elements, any performance-based approach will result in an inequitable and fraudulent compensation system. What the stressed-out pubic service doesn’t need right now is another claim to disrepute!

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