The Canadian economy is stagnant and should definitely take off
By James Alexander Michie.
During a pronouncement by Maxime Bernier at the Canadian Club, September 20, 2016, he got his statements, rejected corporate welfare, cut corporate taxes and see how Canada’s economy finally takes off where it also established that more spending on the scale offered by the liberal government will not stimulate the economy and bring us prosperity.
It is important to clarify that for some of the economists belonging to the private sector, economic growth in Canada this year will only be 1.3 percent, which is why it is understood that there are no new jobs or salary increases for Canadians.
Without a doubt and this is not a secret for anyone, societies are aging rapidly and in fact, it has been suggested that the great technological innovations have come to an end. While for its part, business investment has declined, which is possibly due to the lack of profitable opportunities, leaving, as a result, the growth of productivity is transformed into something considerably slow.
Likewise, in the last 15 years, the growth of multifactor productivity in Canada has exceeded two percent in just one year, in 2000, is less than 1 percent, often negative, in 10 of those 15 years.
In the same way, it is understood that there is no way to improve the standard of living without the growth of productivity. Not when the number of older adults increases rapidly, while the proportion of Canadians of working age is decreasing. Without a doubt, the Canadians who are currently working must redouble their efforts and thus be more productive in order to achieve a common goal, which is to maintain the nation’s prosperity.
The monetary situation is unsustainable and nobody doubts it. However, the situation does not seem to improve and that is that debt and government spending continues to increase, while private debt and spending decrease. There is no creation of net wealth.
On the other hand, there are those who assure that prosperity does not come from government spending but from the entrepreneurs who invest, therefore the opposite of more government spending is necessary. Private investment should be encouraged in order to increase the productive capacity of the economy.
Source: Financial Post