Contents
Key Takeaways 1
Introduction. 3
Poor Performance 4
Causes 7
Why? Canadian Challenges 9
But Why? The Political Economy of Stability 13
Core Factors: Institutional 18
Core Factors: Values 21
Shared Anglo-Saxon Challenges 22
Conclusion. 26
Endnotes 28
Canada’s economic growth over the past twenty years has been quite disappointing. A significant portion of its manufacturing sector, especially in motor vehicles, has disappeared. Productivity and per capita income growth have flatlined, creating an even larger gap compared to the United States. Research and development (R& D) investments are low, and there’s been a net outflow of college-educated workers.
These issues aren’t exactly a secret. They’re mostly recognized-though sometimes not taken seriously enough. There is a thriving discourse around the specific causes of these challenges (like insufficient capital investment, inadequate tech commercialization from universities, and a lack of risk-taking), but these discussions often miss the bigger picture. Why aren’t these challenges being addressed effectively?
What we need is a more thorough political economy examination of Canada’s technological and economic hurdles and why Canada seems reluctant not only to embrace necessary reforms but also to acknowledge that such changes might be essential.
This report suggests that Canada faces three primary limitations: 1) a weak political coalition supporting dynamic industrial capitalism along with techno-industrial policy; 2) superficial analyses that stick to conventional narratives without challenging dominant ideas or interests; and 3) deep-rooted institutional and cultural factors that stifle the emergence of a developmental state capable of fostering necessary creative destruction. Related to all this is a prevalent sense of comfort among many Canadians who refuse to believe that serious issues exist or that structural change is required.
What we need is a more thorough political economy examination of Canada’s technological and economic hurdles and why Canada seems so reluctant not just to embrace necessary reforms but also to admit those changes might be critical.
The presence of all these factors doesn’t bode well for Canada’s economic outlook. Without substantial change, history suggests Canada will continue on its current path, increasingly resembling a natural resource-based economy like Australia’s has become. Sure, as long as global prices for natural resources stay relatively high, this path could offer Canadians an easy life. However, it would mean an economy vastly different from what Canada enjoyed in the post-WWII era.
On a personal note: I’m sharing this as someone who was born in Canada but moved to the United States at age eight. I wouldn’t consider myself an expert on Canadian affairs despite my long-standing interest in its economy. Still, I do feel knowledgeable about national developmentalism and techno-economic policies-not just within the U. S., but across developed nations too. As an outsider looking in, I may lack the deep understanding that comes from living in Canada my entire adult life; however, I believe my comparative insights can be valuable.
Especially when one considers how poorly most aspects fare against leading global players currently occupying prime market positions today!
The productivity crisis facing our nation isn’t merely cyclical or recent-it represents longstanding systemic issues far worse than what we see southward across America.
OECD figures indicate that by2023 average Canadian output stood at only US$74-70/hour worked versus US$97-00/hr seen throughout American workplaces![^][0].
This translates into roughly77% efficiency compared with labor productivity levels found across southern borders’ shores! The longitudinal comparison appears equally discouraging! Per findings previously conducted by Information Technology Innovation Foundation(ITIF), between1982-2002 labor productivity rates grew51% faster inside U. S.-compared-to their northern counterpart while154%-faster thereafter up until2022!
While briefly catching up during early2010s periods proved temporary-the widening divide reemerged once again indicating something fundamentally systemic persists beyond mere annual fluctuations occurring here today! The reality proves disheartening indeed given sustained efforts weren’t produced solely due exclusively because particular industry structures were unfortunate combinations observed-OECD evaluations show sector-specific breakdown only accounts minimally towards differences noted earlier.[^][4].***OECD data shows five out nineteen manufacturing sectors experienced gains exceeding two percent annually between20112021**](https://doi. org/10/index). When comparing ourselves globally regarding individual income ranks relative stature becomes alarming too![^][6][6]. *In twenty24,*real GDP/person adjusted purchasing power parity(PPP)* recorded $51682* -with respective figures remaining behind($20k)[7].[*](#). – with major urban centers housing concentration indicating drops reaching four-point-six percent lower rates absent Toronto altogether![^][8] A troubling trend emerges concerning widening disparities moving forward:<[^]=§.*Analysis conducted shows real GDP/PPP growth averaged only three-point-two percentage points(CAN) alongside representing less than equal rate across said states(North america )over similar timeframes[8]![^][8].* When monitoring further metrics illustrating gaps grown overtime compare unfavorably versus other OECD countries’ alike where median measures captured still higher averages reported standing near52K![^][9] . Moving ahead province-by-province displays clear disparities as outcomes reveal states outperforming provincial counterparts significantly overall; Alberta leads among CAN provinces yet struggles against19 U. S. counties achieving higher peaks overall financially over respective periods selected!. Among them are Mississippi , Nebraska & South Dakota amongst others-revealing weaknesses persisting even amidst regional successes achieved recently nearby.” 【15】【16】【17】. ” } | ” when using standardized units reveals alarming trends emerging additionally touching upon conditions present falling far below expected norms simply measured based off popularity counts alone! 【18】.” | ” Furthermore despite knowledge pointing towards declining status signals numerous voices argue otherwise attempting downplay importance placed upon statistical discrepancies [no data provided backing claims made therein] 【19】.” |” Referring accurately established metrics helps clarify underlying truths rather misunderstandings posed henceforth based upon media narratives crafted hastily resulting confusion amongst citizens similarly challenged perceptions.” **[↳].*** ^†”Canadians tend exhibit higher earnings relative factors tied closely with realities discovered through broader research studies completed independently confirming varying conditions exist respectively affecting workforce demographics.” ** {❌}]*【20】【21】 ● ❗️{POINT}{INDICATOR} ➔ ⬇️= ” ‘As noted above,’low investment levels spanning both infrastructure projects(making meaningful contributions’ concerning outputs remain problematic here’’). ‘ “Confusion surrounding actual realities faced alongside recommendations sought tends produce negative impact eventually hindering progress towards future objectives intended”–as reiterated throughout numerous analyses provided subsequently issued directing focus back towards key areas needing attention promptly!*”【22】.【↘️** ↬=** “”” ![“””The unsustainability rooted deeply within investing heavily/resources streams directed solely relying upon public finances means detrimental effects felt ultimately realizing potential stagnant risks looming large overhead caused thus influencing longterm strategic pathways designed deliver sustainable results attainable.”””] =!;”;</source]" }!"""" """About author: Dr. Robert D. Atkinson(@Rob Atkinson ITIF)is founder/senior fellow Information Technology&Innovation Foundation(ITIF); his works include books detailing various topics ranging innovations/developmental themes explored providing insights critically analyzing modern economies/policy implications"..{“|”} ” “)”.*[25],(^)”!” “ “;
My ancestors immigrated to Canada from Ireland during the famine in the1840s and from England in the1870s before settling in Peterborough Ontario.
When my father was asked by Toronto Dominion Bank to manage operations in America during my childhood our family moved south.
Even now some relatives remain back home which reflects my ongoing affection for your country.
This analysis aims neither at condescension nor ignorance-rather it stems from genuine desire for future success within Canadian borders!
Especially when one considers how poorly most aspects fare against leading global players currently occupying prime market positions today!
The productivity crisis facing our nation isn’t merely cyclical or recent-it represents longstanding systemic issues far worse than what we see southward across America.
OECD figures indicate that by2023 average Canadian output stood at only US$74-70/hour worked versus US$97-00/hr seen throughout American workplaces![^][0].
This translates into roughly77% efficiency compared with labor productivity levels found across southern borders’ shores! The longitudinal comparison appears equally discouraging! Per findings previously conducted by Information Technology Innovation Foundation(ITIF), between1982-2002 labor productivity rates grew51% faster inside U. S.-compared-to their northern counterpart while154%-faster thereafter up until2022!
While briefly catching up during early2010s periods proved temporary-the widening divide reemerged once again indicating something fundamentally systemic persists beyond mere annual fluctuations occurring here today! The reality proves disheartening indeed given sustained efforts weren’t produced solely due exclusively because particular industry structures were unfortunate combinations observed-OECD evaluations show sector-specific breakdown only accounts minimally towards differences noted earlier.[^][4].***OECD data shows five out nineteen manufacturing sectors experienced gains exceeding two percent annually between20112021**](https://doi. org/10/index). When comparing ourselves globally regarding individual income ranks relative stature becomes alarming too![^][6][6]. *In twenty24,*real GDP/person adjusted purchasing power parity(PPP)* recorded $51682* -with respective figures remaining behind($20k)[7].[*](#). – with major urban centers housing concentration indicating drops reaching four-point-six percent lower rates absent Toronto altogether![^][8] A troubling trend emerges concerning widening disparities moving forward:<[^]=§.*Analysis conducted shows real GDP/PPP growth averaged only three-point-two percentage points(CAN) alongside representing less than equal rate across said states(North america )over similar timeframes[8]![^][8].* When monitoring further metrics illustrating gaps grown overtime compare unfavorably versus other OECD countries’ alike where median measures captured still higher averages reported standing near52K![^][9] . Moving ahead province-by-province displays clear disparities as outcomes reveal states outperforming provincial counterparts significantly overall; Alberta leads among CAN provinces yet struggles against19 U. S. counties achieving higher peaks overall financially over respective periods selected!. Among them are Mississippi , Nebraska & South Dakota amongst others-revealing weaknesses persisting even amidst regional successes achieved recently nearby.” 【15】【16】【17】. ” } | ” when using standardized units reveals alarming trends emerging additionally touching upon conditions present falling far below expected norms simply measured based off popularity counts alone! 【18】.” | ” Furthermore despite knowledge pointing towards declining status signals numerous voices argue otherwise attempting downplay importance placed upon statistical discrepancies [no data provided backing claims made therein] 【19】.” |” Referring accurately established metrics helps clarify underlying truths rather misunderstandings posed henceforth based upon media narratives crafted hastily resulting confusion amongst citizens similarly challenged perceptions.” **[↳].*** ^†”Canadians tend exhibit higher earnings relative factors tied closely with realities discovered through broader research studies completed independently confirming varying conditions exist respectively affecting workforce demographics.” ** {❌}]*【20】【21】 ● ❗️{POINT}{INDICATOR} ➔ ⬇️= ” ‘As noted above,’low investment levels spanning both infrastructure projects(making meaningful contributions’ concerning outputs remain problematic here’’). ‘ “Confusion surrounding actual realities faced alongside recommendations sought tends produce negative impact eventually hindering progress towards future objectives intended”–as reiterated throughout numerous analyses provided subsequently issued directing focus back towards key areas needing attention promptly!*”【22】.【↘️** ↬=** “”” ![“””The unsustainability rooted deeply within investing heavily/resources streams directed solely relying upon public finances means detrimental effects felt ultimately realizing potential stagnant risks looming large overhead caused thus influencing longterm strategic pathways designed deliver sustainable results attainable.”””] =!;”;</source]" }!"""" """About author: Dr. Robert D. Atkinson(@Rob Atkinson ITIF)is founder/senior fellow Information Technology&Innovation Foundation(ITIF); his works include books detailing various topics ranging innovations/developmental themes explored providing insights critically analyzing modern economies/policy implications"..{“|”} ” “)”.*[25],(^)”!” “ “;
