Unprecedented decline in the standard of living of Canadians (translated)

[CdnFox]

https://www-ledevoir-com.translate.goog/opinion/chroniques/802045/chronique-declin-precedent-niveau-evie-canadiens?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=fr&_x_tr_pto=wapp

 

Another study confirms this. The standard of living of Canadians is in constant decline. The situation is even worse than before the pandemic.

The indicator comes from GDP and its variations per hour worked and per capita, from which we can make a nod to productivity and standard of living. On this basis, it is known and documented that productivity growth in Canada has lagged behind countries with so-called developed economies for decades. Particularly compared to the United States. “ What is new is that productivity has actually reversed itself over the last five years, has declined, taking real GDP per capita with it on a downward trajectory. » Douglas Porter, chief economist of BMO, even speaks of a sustained decline in recent years without precedent since the post-war period.

The pandemic effect has little or nothing to do with it, with the economist noting close to normal growth in productivity in the United States during this atypical period. In fact, business sector productivity in Canada has seen an average annual decline of 0.3% over the past five years, compared to a gain of 1.7% south of the border. “GDP per hour worked is the fundamental element of the standard of living. “So the recent decline in productivity is clear evidence that Canadians on average are worse off than before the pandemic — it’s not just a perception,” he writes.

 

In recent years, the emphasis has often been on the distribution of resources (read wealth) rather than their expansion (read creation), and on supporting short-term consumption rather than investment. long-term. What the pandemic has exacerbated. And the BMO economist broadens the thinking: “Rather than force-feeding capital spending through massive subsidies, policymakers should look at a fundamental question: why are businesses so reluctant to invest in Canada? »

Edited December 4, 2023 by CdnFox

[CdnFox]

So we are REALLY in trouble. I don't think people get this yet.

And it has nothing to do with the Pandemic.

Businesses don't want to invest in Canada, and handing out corporate welfare OR cash to the public is not making it better. The answer isn't to hand over 13 billion in subsidies, it's to make Canada where business wants to be in the first place.

 

[WestCanMan]

19 minutes ago, CdnFox said:

Businesses don't want to invest in Canada, 

TBH, outside of the energy sector he must be doing very well because he tanked energy hard.

Within 6 months of him being the PM, over $130B in projects in the oil and gas sector were cancelled.

[CdnFox]

53 minutes ago, WestCanMan said:

TBH, outside of the energy sector he must be doing very well because he tanked energy hard.

Within 6 months of him being the PM, over $130B in projects in the oil and gas sector were cancelled.

I don't think any sectors are doing great. Even the movie making business seems to have slowed down.

He spent from 2015 - 2019 talking about how he'd tax the rich and how his rich buddies all said they wouldn't mind, no big deal. That's going to scare people off. He started to increase the debt right away - that always scares the snickerdoodles out of business. He's stymied competition and that hurts because it locks people out. Etc etc.

Without strong investment in business and the competition necessary to drive efficiency we tend to sink lower and lower.