Jacques Boudreau

$732.9 BILLION. That’s how much the Canadian federal government is projected to borrow over the next five years. And apparently, most Canadians aren’t particularly concerned. It’s Wednesday, which means another edition of my weekly 1-1-1 newsletter: one comment on taxation, one on leadership and one on economics/politics. This week’s edition examines a common problem running through all three: governments and leaders who can’t say no, even when the consequences of constantly saying yes are staring them in the face. On economics and politics, the Parliamentary Budget Officer projects $732.9 billion in federal borrowing over five years, with annual debt charges reaching $83 billion by 2030-31. That’s approximately $1,952 per Canadian, every year, just to service the federal debt. Meanwhile, an Abacus poll puts approval of the Carney government at 59%. That boggles my mind. The government’s response will undoubtedly involve more talk about balancing its “operating budget.” As I’ve written repeatedly, splitting operating and capital spending is a deceptive accounting trick that allows governments to claim fiscal discipline while borrowing continues. Debt is debt is debt. And interest bills don’t disappear because politicians change the labels. On taxation, I look ahead to the November 5, 2026 federal budget. The House of Commons finance committee received 1,351 written briefs and produced 130 recommendations, including at least 15 calling for new, expanded or extended tax credits and similar incentives. Oh brother. The same committee also recommended a comprehensive review of Canada’s tax system. Apparently, the solution to our ridiculously complicated tax system is to make it even more complicated. Contrast that with the C.D. Howe Institute’s recent Shadow Budget, which proposes genuine structural reform: lower tax rates, fewer credits, a broader tax base and meaningful spending restraint. On leadership, I examine why the hardest word for many leaders is “no.” Whether it’s an employee demanding a raise, a department lobbying for a bigger budget or a client demanding more attention, every yes consumes resources that can’t be spent elsewhere. Every yes to the loud is often a quiet no to someone who isn’t in the room. And that brings me to this week’s bonus quote from former British prime minister Tony Blair: “The art of leadership is saying no, not yes. It is very easy to say yes.” Exactly. A yes is a gift to the person asking. A no is often a gift to everyone else. Good leadership isn’t about keeping everyone happy. It’s about making difficult choices before the bills come due. And if you like my content and want more, please sign-up to my In The Mood Network mailing list - link in thread. kimgcmoody.com/kim-g-c-moody…