FROLITICKS

Satirical commentary on Canadian and American current political issues

Nov 21

Economic Impact of Current Decline of Canadian Tourists to U.S.

by bcurry

Few people really understand the importance of tourism on their economy, in particular with respect to employment, revenue and taxes.  The Gross Domestic Product (GDP) contribution of tourism to the U.S. economy went from $2.36 trillion in 2023 to $2.5 trillion in 2024.  In 2024, this represented about 9% of the U.S. economy.  By 2034, the industry estimates that tourism will continue to grow to represent almost a 10th of the country’s total GDP.  Total direct and indirect U.S. employment related to tourism is estimated at more than 20 million people, close to 10% of the labour force.  Many work in the accommodation, food services and travel sectors.  This compares with the manufacturing proportion of the labour force at 7.5% in 2024, representing about 13 million workers.

However, 2025 has so far seen a serious decline in the number of Canadian tourists visiting the U.S., largely due to the political and economic policies of the Trump administration which placed tariffs on a number of Canadian exports.  Let’s also not forget Trump’s assertions that Canada should become the 51RST state which angered a large number of Canadians.  In addition, tourism to the U.S. is already stressed by the continuing high exchange rate versus other currencies, including the Canadian dollar.  This decline is particularly pronounced in specific segments, with Canadian overnight land trips falling by 26%, indicating regional tensions affecting traditional travel corridors.  As a result of bordering with the U.S., there has always been a significant amount of travel between the two countries, most notably within the northern U.S. states which rely most heavily on Canadian tourists.

The World Travel & Tourism Council’s projection of a $12.5 billion loss in international visitor spending represents the most significant challenge facing the sector.  This decline affects not only major metropolitan areas but also rural communities that depend on tourism revenue for economic sustainability.  The most significant drop has been in Canadian visitation which has seen a 20.2 % decline so far this year.  In 2024, Canada had maintained its position as the leading source market with over 20 million visitors.  However, Canadian visitors returning from the U.S. by land plunged 31.9% year-over-year in March 2025, while air arrivals fell 13.5%.  In general, the tourism landscape in America during 2025 presents a complex narrative of recovery and decline. The projected annual loss of $12.5 billion in overall international visitor spending represents more than just statistical data — it reflects a fundamental shift in global travel patterns that directly impacts communities, businesses, and employment across the nation.

In both the U.S. and Canada, tourism is an important expanding sector, representing more employment potential than even in the manufacturing sector.  This fact appears to be something loss on members of the Trump administration, who fail to see the negative impact of their trade relations on this sector.  It’s difficult to say when a turnaround might occur with respect to Canadian tourists, particularly since governments and businesses in Canada are greatly promoting the idea that Canadians should travel and vacation in Canada.  In addition, Canada is currently promoting international visits by persons from other countries to Canada in lieu of visiting the U.S.  Since Canadians were number one in terms of visitors to the U.S. in the past, unfortunately there is little doubt that American tourism businesses are now feeling the direct impact of this decline.  Again and again, our southern neighbours, particularly in border states, have expressed their disappointment.  They have also expressed their understanding as to why more Canadians are holding off on visiting their country, given the current policies of the Trump administration.  All in all, the whole situation is truly regretful given the traditional, friendly and close relationship between the two countries and its peoples.

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Aug 29

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

by bcurry

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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Jul 28

U.S. Is Trying to Milk the Canadian Dairy Industry

by bcurry

As part of the Trump administration’s trade talks with Canada, Trump has once again unfairly attacked Canada’s supply management system in the dairy industry.  The problem is that this continuous American attack doesn’t really make much sense!  Here’s why.

First and foremost, Canada, with a population of about 40 million, is a small market to begin with.  Secondly, while the American dairy and poultry markets are dominated by large industrial farms, the Canadian scene is primarily one of smaller farms, often family managed.  Thirdly, U.S. dairy producers reportedly insist they’re not looking for Canada to dismantle its crucial supply management system.  Fourthly, Canada’s imports of U.S. dairy products have risen significantly since the quotas imposed under the current Canada-U.S.-Mexico Agreement (CUSMA) took effect in 2020.  Those imports totalled $897 million in 2024, according to Statistics Canada data, more than four times the value of imports in any year before 2020.  In 2024, American dairy exports to Canada had increased by 67% since 2021. This made Canada America’s second-largest dairy customer and its largest customer per capita.  Moreover, Canada presently has a $520 million dairy trade deficit with the U.S.  Fifthly, Trump’s claims of a 390 or 400 per cent tariff are false, particularly given the way the quotas on American dairy products actually work under the CUSMA.  Indeed, it is reported that to date, no U.S. dairy products imported by Canada have been subjected to those higher tariffs under the current agreement.  Under CUSMA, the U.S. can send 49 million litres of milk to Canada every year, before a single drop would have a tariff imposed.  In addition, that tariff-free amount is set to continue to grow gradually over the next 13 years.  The U.S. uses the same system of tariff-free imports of certain Canadian products up to a set quantity before imposing its tariffs. Finally, Canada’s maximum allowable dairy exports to the U.S. are lower than those for other countries, including the United Kingdom and Australia, according to the U.S. International Trade Commission’s harmonized tariff schedule.  So, let’s not talk about unfairness when it comes to dairy exports between the two countries.

Furthermore, the president of the Dairy Farmers of Canada, David Wiens, notes that countries such as the United States heavily subsidize their dairy industry for production, forcing taxpayers to pay twice for their milk (once at the store and again through their taxes). In contrast, Canadian dairy farmers do not receive similar production subsidies.

Importantly, supply management has delivered food security and sovereignty to Canada for more than six decades by producing dairy here for Canadians.  It aligns production with demand to deliver high-quality, diverse products at stable prices for Canadian consumers and a fair return for its farmers.  It also strengthens the economy, with about 340,000 Canadian jobs fuelled by the supply-managed dairy, poultry and egg sectors, and over $30 billion contributed to Canada’s gross domestic product.  Simply put, Canada’s rationale for the approach taken under CUSMA is to ensure that the domestic dairy industry thrives by effectively capping how much the U.S. can export each year, preventing cheaper American products from dominating the smaller market.

There are also benefits to having few industrial farms as demonstrated by the recent and ongoing costly toll of the bird flu outbreak on U.S. dairy farms, which in particular drove up the price of eggs in the states, affected dairy cows, decreased milk production and financially decimated many affected farms.  None of this happened to the same extent in Canada.

One chief complaint from the U.S. focuses on Canada’s cheap exports of milk proteins, also described as milk solids, such as skim milk powder.  The Americans argue that because Canada’s supply management system keeps domestic prices artificially high, Canada can sell its excess production of milk proteins internationally at artificially low prices, undercutting the competition.  Such issues can certainly be reasonably discussed as part of any renegotiation of the CUSMA scheduled to be undertaken in 2026.  Remember that Trump actually signed that agreement during his first term as president.  The key point is that one has to do away with sources of misinformation and continue to deal with this particular trade issue in a way that both countries can benefit, thereby profiting farmers on both sides of the border.

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Jun 17

Canadians Can Be Mad at the U.S., But Maybe We Had a Lot to Do With the Problem

by bcurry

Yes, Canada has every right to be mad at the Trump administration for reneging on the current trade agreement previously signed by then President Trump, imposing new tariffs on Canadian exports to the U.S., and promoting the concept of a 51st state.  However, I can’t help thinking that we had a lot to do with creating the current crisis situation.

Actually years ago, I briefly thought that there might be some merit in Canada becoming part of the U.S. After all, with the signing of the North American Free Trade Agreement (NAFTA), our economy became even more integrated into that of the U.S.  Take the automotive sector for example, it was and still is the most integrated industry under past and current trade agreements between the two countries.  The so-called Auto Pact has had a longstanding history and basically prevented Canada from developing its own automotive manufacturing sector.  Perhaps it made sense given that Canada’s population is one tenth that of the American population and our market also became flooded with Asian and European cars.  Basically, we are non-competitive.  However, no one objected given the workings of the global economy, which no doubt benefited the pocketbooks of Canadians through access to cheaper goods.

Other Canadian sectors such as lumber, steel, aluminum and minerals all grew primarily due to the access to American markets.  Our reliance on these markets may have made us a little lazy and not overly innovative in some areas, especially as it pertains to other trading blocs.  Internally, intraprovincial trade barriers further exacerbated the lack of industrial growth and weaker productivity within Canada itself.  Professionals and trades people could not move easily between and among provinces due to labour mobility restrictions.  One could also have done a lot more to promote tourism within Canada and to build the required infrastructure for a modern tourism industry.

In more recent years, the modern world came to see the ever increasing need for rare minerals to support the growth of computerized technologies.  Both Canada and the U.S. became overly reliant on China which supplies about 80% of the much needed processed rare minerals used in such areas as electronics.  Canada has long been aware of its large sources of rare minerals, but has done next to nothing in developing processing capabilities. 

As for energy, Canada has major oil and gas reserves.  However, previous Canadian governments have stalled numerous potential projects such as the construction of pipelines to transport oil and natural gas to British Columbia ports for export to Asia and the U.S. west coast.  The expansion of pipelines within Canada has also been negatively affected by intraprovincial disputes over economic benefits, indigenous and environmental issues. 

In terms of our cultural sector, Canada has become a major cheap source for the production of American films and television series.  However, except for the support of the Canadian Broadcasting Corporation (CBC) and various federally subsidies and tax breaks, the growth of Canadian content has been somewhat limited.  Instead, Canada became very dependent on American content as cable and steaming services steadily grew.  Quebec is the exception primarily because of the need to supply French content within the province through Radio Canada and other Quebec sources.  Moreover, we need to do a lot more to support Canadian culture, particularly through the CBC.

Today, I am a proud Canadian and object to Trump’s assertions about a northern 51st state.  I have seen positive social-economic trends in Canadian society.  With what is happening to the apparent attacks by the Trump administration on all aspects of American democracy, I clearly prefer to remain Canadian.  However, I would argue that much of what is happening economically is partly, if not mostly, our own fault.  As Canadians, there is a lot more that we can do to strengthen our nation.  This might indeed be a significant reversal of fortune.  So, stop complaining and let us demonstrate that Canada has a future of opportunities, with or without past ties to the U.S.


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Jul 27

Could Donald Trump Become President? Sure, Why Not!

by bcurry

Donald Trump wants to be President of the United States of America. Well, maybe he’s not all that crazy. After all, Ronald Reagan was once a former actor whose greatest role was playing the U.S. President for real. He was said to have slept through Cabinet meetings and insisted on having briefing notes of no longer than one page in length. Apparently, this was to accommodate his short span of attention by providing script-like documents. Bill Clinton was well known for failure to keep it in his pants during his entire political career. George W. Bush invented new words or mispronounced actual words, thus becoming the butt of numerous comedians’ jokes. President Bush was given 9/11 as his legacy, and messed it up by invading Iraq under false pretences. Barak Obama became the first African-American President, although many Americans including African-Americans, didn’t think of him as really being black.

So why couldn’t Donald Trump become President? Trump leads all other Republican candidates in the polls at this time. He shoots from the hip, much like Reagan and Bush. His mouth often outruns his brains, not unlike former Presidents. Yet, he has come to represent a significant part of the American electorate that is angry with the state of their politics, the economy and society in general. He represents that portion of the population where the American dream has become a nightmare. He talks about issues like immigration which other candidates have tended to avoid by employing the usual cautious platitudes. He doesn’t rely on carefully-worded positions developed through focus-groups and well paid politically-savvy advisors.

Many Americans, like many Canadians, are frustrated with the current political scene. They feel that the powers that be in Washington and Ottawa do not reflect their real interests. In all truth, can you blame them? When you struggle everyday to make ends meet and good paying jobs are becoming fewer and fewer, you tend to target those fat cats in government and in the corporate world. However, despite Trump himself being a fat cat, he seems to speak for this disgruntled portion of the population. You may not like the things he says or how he says them, but you have to admit that his straight talk is somewhat catchy and to the point. If anything, he once again has become a media darling, which may in the end be his downfall.

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