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Canada Secretly Getting Poorer vs Other Advanced Economies


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https://betterdwelling.com/canadian-gdp-per-capita-is-still-down-may-indicate-drop-in-living-standards-stat-can/#:~:text=The analysis shows from 2020,it seems to be worsening.

 

Canada poor increase in productivity over the past couple of decades especially when compared to the US but also compared to much of the industrialized world also creates a related problem... Falling GDP Per Capita  at least when adjusted for inflation

 

Canada has been the fastest growing economy in the G7 for the better part of the last 2 decades and among the best in the industrialized world in general. This strong growth has also helped (among with other factors) to keep the Debt to GDP Ratio lower than in most advanced economies as the economies size can outgrow the debt long term

 

However an often ignored caveat is that Canada's "strong" economic growth is really just because of strong population growth. It is growing well in total absolute terms but stagnating even contracting for many years now on a per capita basis if also adjusted for inflation

 

Experts debate between the causes despite no consensus such as:

 

1. a low entrepreneurship spirit in the culture

2. extremely expensive realestate draining too much lending capital that cannot be used for productive purposes such as businesses upgrading capacity, new equipment or funding startups, banks instead prefer the lower risks of mortgages which in Canada is always in superheated demand

3. a high immigration rate which helps reduce work shortages but as a side effect by reducing natural labor pressures some theorize it takes away from business incentives to find creative solutions to increase output per worker. In essence rather than improving the labor we already got, we simply try to add as many people as possible to fill gaps

4. Too much reliance on volatile natural resource sector, typically a trait shared more strongly with 3rd world and developing countries. 

 

Whatever the true reason lagging behind other developed Nations, the fact is if the trend continues standard of living will steadily decline. While that may feel to be happening in every advanced economy already for a number of different reasons, on a relative basis compared to other advanced economies, Canada will do worse

 

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Economy

@OBEY @JustinTrudeau @LaLa @GagaSine @Luc @PartySick (I know the last two tagged aren't Canadian but curious on ur perspective)

 

not every single point I mentioned in OP was in the main source as this is info collages from many articles and interviews I been seeing but it's basically the gist of it

 

I personally believe expensive real estate and an immigration rate that is too high are the 2 biggest issues

 

I think they are right that when Real Estate is so chronically unaffordable, too much of the Nation's lending and borrowing and capital is dedicated to that one sector that doesn't increase productivity in anything. It drains all the lending and borrowing power to inflate an asset (the same asset can exist at a much lower price) and drains crutial financing life blood away from businesses. They say Canadians don't want to entrepreneur but banks don't like lending for that. It's so much less risky to lend for a $1M mortgage that everyone has to take

 

Also I'm very pro immigration in general but when you target numbers so high that ur just stuffing people in trying to fill and target every labor sector with a shortage, ur getting rid of some natural pressure for businesses to enhance their productivity out of necessity.

 

Most developed Nations are facing the reality of ageing population and stagnant or even shrinking workforces which forces companies to find ways to do more with less labor. But in Canada the pressure is way less prominent cuz we just keep replacing retirees with lots of new commers

 

I think these 2 factors alone are a big issue

 

 

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32 minutes ago, Economy said:

1. a low entrepreneurship spirit in the culture

 

tbh I feel like this is in part because MANY ppl view Canada as a transit nation. I've seen so many ppl go to Canada with only temporary ambitions there ex: work there for a couple years and then move to the US or Europe or get education there but then leave and go back home once done with education etc....I mean even Canadians I speak to regularly talk about how they can no longer tolerate the winters and how they dream to move out which is insane to me because Canada is such a wonderful nation imo with a lot of great social structures in place compared to other none Western European nations.

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8 hours ago, dit said:

tbh I feel like this is in part because MANY ppl view Canada as a transit nation. I've seen so many ppl go to Canada with only temporary ambitions there ex: work there for a couple years and then move to the US or Europe or get education there but then leave and go back home once done with education etc....I mean even Canadians I speak to regularly talk about how they can no longer tolerate the winters and how they dream to move out which is insane to me because Canada is such a wonderful nation imo with a lot of great social structures in place compared to other none Western European nations.

I've noticed that too. Many say they plan to leave one day but of course never follow thru (reminds me of Americans who say they moving to Canada everytime they don't like the election results :ladyhaha:)

 

I definitely agree Canadians in general don't seem to have the drive of starting a business and taking big risks to trying to build an empire like Americans. Even if you saw Deal or No Deal Canada I noticed in the Canadian version contestants were way less willing to take big risks than their American counterparts and often took the deal sooner

 

But definitely I can see the capital issue being a factor too. Banks are too comfortable lending to realestate and people too tapped out borrowing to pay for it not leaving much room for side ventures...

 

Realestate has become like this lazy beast where the rich get steady income from it (and those who've had it a while got asset rich doing nothing) and just keep feeding it and everyone else like a slave to it keeps it moving

 

Capital available for real investments of any quality are thus deminished in Canada as a result of that drain

 

 

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