This week, David Coletto, founder, chair, and CEO of Abacus Data and leading Canadian pollster spoke to editor-at-large Sean Speer about why Canadians are increasingly adopting a “scarcity mindset,” how attitudes have changed around the Liberal government’s ability to address economic issues, and how Bill C-11 exemplifies the government not understanding the modern mentality of Canadian consumers.
1. The growing “scarcity mindset” of Canadians
Coletto identifies a growing “scarcity mindset” in Canada, driven by the perception that essential goods and services—such as housing, health care, and food—are increasingly difficult to access. This mindset transcends demographics, he describes, affecting all age groups and regions, but is particularly acute among younger Canadians who feel burdened by inflation and limited opportunities.
The scarcity mindset fosters zero-sum thinking, leading to societal friction. Governments have faced challenges in responding, as short-term fixes like the federal Liberals’ GST tax holiday and the $250 cheques (that will roll out next spring) fail to address the structural issues underlying scarcity.
Coletto instead stresses the importance of long-term government planning to recognize factors such as our aging population and our shifting opinions on immigration. He also emphasized politicians should practice commitment and empathy (a commitment, he says, is lacking from leaders like Finance Minister Chrystia Freeland, who says we are in a “vibecession”). Politicians must bridge the gap between immediate concerns and long-term solutions, as a failure to implement policies that reflect what people feel will deepen the Canadian public’s frustration and alienation.
2. Squaring the microeconomic with the macroeconomic
Coletto highlights the disconnect between microeconomic challenges faced by Canadians and the broader macroeconomic vision needed to address these issues. He observes that Canadians often focus on immediate, tangible concerns—such as housing shortages, tax burdens, and rising costs. He also reflects on how politicians have struggled to address these concerns, as many governments, particularly the federal Liberals, lack a compelling economic narrative that resonates with everyday Canadians. Coletto emphasizes that the absence of a clear vision leaves the public feeling adrift, exacerbating frustrations tied to the scarcity mindset.
The federal Conservatives, led by Pierre Poilievre, have capitalized on this discontent, particularly among younger Canadians burdened by debt and high living costs. Millennials, feeling left behind in achieving traditional milestones like homeownership, have responded to Poilievre’s consistent focus on housing and economic fairness. This demographic shift is notable, as younger voters who traditionally leaned toward the Liberals now view them as having failed to deliver on their promises. Coletto argues that without a compelling macroeconomic vision to inspire confidence and address individual concerns, political leaders risk losing public trust and support.
3. Why the Online Streaming Act ignores many Canadian consumers
Coletto argues that Bill C-11 (the Online Streaming Act) risks alienating Canadian consumers by interfering with their personalized digital experiences. Bill C-11 forces YouTube along with streaming platforms like Netflix and Amazon Prime, to promote Canadian content (music, TV, film) the way Canadian radio stations and TV networks are required to today. It also requires those streaming companies to assist financially in the production of Canadian content.
Ninety percent of Canadians use streaming services, with younger Canadians being more likely to pay for them. For many, this is a space where government, which should focus on other more pressing economic issues, doesn’t need to be.
Given that they are accustomed to algorithm-driven content curation, Coletto says younger Canadians might reject mandates to prioritize Canadian content, should it disrupt their user experience. He highlights the low public demand for such regulation, noting that Canadians value quality content over where it comes from. A Reuters Institute study found an increase in Canadians using social media to get their news, and using TikTok for news in particular (43 percent in 2023).
Coletto views the bill as an outdated, analog approach to a digital issue, stressing the need for government policies that support creators without imposing on consumers. The risk is heightened, he says, by the public’s low trust in government, which amplifies skepticism toward perceived overreach.
While cultural nationalism remains significant in Quebec, where French-language content holds real importance, Coletto sees limited resonance for Bill C-11 elsewhere in Canada, where “CanCon” is not necessarily a priority for consumers.
ChatGPT assisted in the creation of this article.
