As the federal government pores over its budget books, the sheer scale of its activities is staggering. Programs exist for seemingly every facet of life, and once established, they rarely disappear. This expansive role comes at a steep price, with annual federal expenditure now approaching half a trillion dollars—roughly $11,500 for every Canadian.
The Unsustainable Cost of Government
This spending isn't fully covered by tax revenue, forcing Canada to borrow. The interest payments on this accumulating debt now rival the amount spent on national health care. It's against this fiscal backdrop that Prime Minister Mark Carney and his finance minister are searching for savings. While their approach is framed as trimming rather than a fundamental overhaul, a pressing question emerges: what is the proper, essential role of the federal state?
The opinion piece, published on December 4, 2025, argues that demographic and economic trends in Western nations—like shrinking working-age populations and ballooning entitlements—make this question urgent. If not addressed proactively, a harsh, forced rationalization of government could become inevitable.
Reframing the Question: Needs vs. Wants
The author, Andrew MacDougall, proposes a reframing. Instead of asking where to cut, we should ask: What does a federal government absolutely need to do? This becomes critical if future governments face tighter borrowing limits or if central banks can no longer artificially stabilize markets.
To answer this, the piece turns to psychologist Abraham Maslow's hierarchy of needs. Just as humans have fundamental requirements for survival, what are the core needs a government must fulfill? At the base of Maslow's pyramid are physiological needs: food, water, warmth, and sleep.
Applying this model suggests a federal government should prioritize ensuring a safe and secure supply of food, water, energy, and housing. To this foundation, one must add the defence of the nation and the administration of justice. Finally, the government needs the ability to collect taxes to fund these essential services.
A Return to a Leaner Model?
This narrow, focused collection of duties closely resembles the federal government's scope in the pre-Second World War, pre-Baby Boom era. At that time, only about a dozen ministries and a small civil service were required to deliver these core functions.
Much of the government apparatus built since then, the article contends, aligns with Maslow's higher-level needs for societal self-expression and actualization. It questions whether agencies like the National Film Board (NFB) or Accessibility Standards Canada, while potentially desirable, are essential in a financially constrained environment focused on core needs.
The underlying argument is that a serious conversation about the government's fundamental purpose is necessary. By distinguishing between what is necessary and what is nice to have, Canada could strategically streamline its operations before a fiscal crisis forces more drastic and painful choices.
