The Stagnating Economy of Canada | Economics Explained
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Canada is one of the wealthiest economies in the world today, but the OECD forecasts that the country will stagnate and is poised for the lowest growth of any advanced economy over the next 5 years. So why is Canada struggling to grow and what can this tell us about other advanced economies?
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2:26 - 3:13 Geography
3:14 - 4:44 Labour productivity
4:45 - 6:38 Capital investment
6:39 - 8:46 Financial markets
8:47 - 10:12 Rivalry with US
10:13 - 11:05 Real estate prices
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8:14 thanks for showing incorrect name of india
Это во всём мире так, а не только в Канаде.
Это будет самая длинная и самая холодная зима в мировой истории.
Если ты понимаешь о чём я 😐
This is a joke service designed to trick people out of their money. Modern browsers don't easily go to unencrypted traffic websites. You're not 'at risk' going to a coffee shop and going to literally any up-to-date https website. Banks, personal finance, all other accounts with reputable companies.
When you start accepting scam companies ad money, I'm done watching your channel.
If they dont store any user data, I wouldnt be able to create an account.
Two funniest phrases in this vid.:
'poutine breaks'
'Toronto Stock Exchange'
😀.
I’m surprised you didn’t talk about the CMHC and how the average home is twice as expensive as a US home despite Canadians having less than half the average discretionary income than people in the US
yt: ᴛʜᴀɴᴋ ʏᴏᴜ ꜰᴏʀ ʏᴏᴜʀ ᴄᴏᴍᴍᴇɴᴛ.. ʙᴇ ꜱᴜʀᴇ ᴛᴏ ᴄᴏɴᴛᴀᴄᴛ ᴛʜᴇ ᴡʜᴀᴛꜱᴀᴘ ʟɪɴᴇ ꜰᴏʀ ᴄᴏɴꜱᴜʟᴛᴀᴛɪᴏɴ & ꜱᴘᴇᴄɪᴀʟ ᴀᴅᴠɪᴄᴇ ᴏɴ ᴄʀʏᴘᴛᴏ (ʙᴛᴄ & ᴇᴛʜ) *ᴡʜᴀᴛꜱᴀᴘᴘ ✙𝟏(𝟗𝟕𝟖)𝟓𝟕𝟐-𝟎𝟏𝟗𝟒,
huge blind spot
Is Canadian zoning that bad? Why aren’t developers able to build?
@@commonomics Our real-estate bubble never popped in 08' for some reason and is still growing.
@@commonomics Also 80% of Canada is wilderness and a lot of the 20% that isn't is spotted with lakes unsuitable for highways and roads.
Canadian working in the US here. At least in my industry the income gap between US and Canada is massive. I can get almost twice as much income within the same company under the same job title when you factor in the exchange rate, while also paying lower taxes.
I am actually getting paid about the same here in the US as my manager, who works remotely from Canada. He is considering moving to the US by the end of the year.
My company says they can't do an internal transfer to the US because the visa requires justification. How would your manager do it if you don't mind me asking?
@@scoops2 AFAIK if you're looking to get the TN visa it doesn't need justifications, at least not from US immigration. As long as you meet the qualifications you can just apply at the border with your job offer.
Maybe what your company is saying is that they internally need a justification to bring you to the US instead of just keep you in Canada? Unless you're applying for a H1B, which means your company will be paying for all the processing fees.
@ᴇᴄᴏɴᴏᴍɪᴄꜱ ᴇxᴘʟᴀɪɴᴇᴅ Scammer, get a life. Guys, dont fall for this.
The average Ontario high school teacher makes north of 100k per year (before time off, job securtity, etc.) despite there being a massive surplus of education graduates, while the average software engineer makes 85k despite the country hemoraging STEM workers. If you live in Canada and you're not working a cushy government job or invested in real estate, you're treated a sucker.
I find it strange people want to move to this shithole of a country. That being the U.S. I would move to Canada if I could. But I can't. There are more important things than money.
Well I'd be retiring or working less in 5 years and I'm only curious how people split their pay, how much of it goes into savings, spendings or investments?? I earn around $165K per year but nothing to show for it yet
@@tatianastarcic Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.
@@maiadazz Thats quite Impressive! can you share more info?
@@richardhudson1243 Having a counselor is essential for portfolio diversification. My advisor is Nicole Joi Anderson. who is easily searchable and has extensive knowledge of the financial markets.
Don't believe anything said by the other fake people in this series of posts. This is a regular formula to provide you with a fantastic investment advisor. But it is a scam. These are fake CZcams accounts made to provide you with a narrative which ends with the referral.
@@maiadazz Bunch of bots having a convo with itself
"most of my audience is American and they tend to lose interest if they're not mentioned every few minutes"
🤣🤣🤣
Lol 🤣
That was a stupid slight to add. Those same viewers are his bread and butter. That was an arrogant, foolish comment to put in a video.
@@keyquestions bro it’s a joke. I’m American and it’s funny af. Please have a sense of humor.
Economics explained it does have a point, with a few exceptions, the Americans that I have met do tend to lose interest if they’re not mentioned frequently.
Also, putting brakes? L O L, that’s funny.
As a Canadian, now I’m imagining a bunch of random Canadians around the poutine bar, chatting well, well, eating large boxes of poutine. Shrug
@@keyquestions you've got issues 😂🤣
EE missed the most important detail about Canada: it's a natural resource economy. It's primary economic activity revolves around mining, lumber, oil, and natural gas. The closest countries to Canada economically are places like Norway or Russia, not the United States. Both those countries are resource economies as well, and they experience the same "brain-drain" issues as Canada for similar economic reasons.
Brain drain is worse for Canada though because the US is so similar and such a short drive. For someone from Norway or Russia, there's be a lot of effort involved with moving and adapting to the US but very little for Canadians.
@@Huntinggearguy Not necessarily. Brain drain=/=distance to USA. The USA is not every immigrant’s number one choice. Russia has a significantly higher rate of brain drain than Canada, and did even before the Ukrainian invasion, though it has increased massively since, because of Russia’s terrible economy.
No, it's a consumer-based economy
If people spend all their money on rent and housing in a consumer-based
economy where people need to spend money on goods and services to grow
the economy, the economy won't grow. It's not that hard to understand
Brain drain from Norway? I live here and no one wants to leave, perhaps a select few will work abroad, but mostly France, England, Canada or the US, and I’d say it’s very rare. Lots of people want to work in Norway though, as salaries are big and standard of living very high.
You do know that it is very similiar to EE's country of australia in that sense.
Absolutely spot on, as an Australian who moved to Canada I’ve found that Canadian industries are too afraid to spend money on innovation especially in construction.
I worked construction for some time here in california and i was told that if a construction company won a bid for government work, the pay will actually be doubled automatically for every employee.
Canadian corporations are notoriously conservative when it comes to investing in new technologies and infrastructure. Almost every major industry is an oligopoly at this point, so competition is dead.
Yes.... we get some of our ideas from Australia such as PPP...
I know someone who got hired to get a company work in other countries. He got them a huge project then they backed off and let him go since they found in the end they dont want to take risks getting out of canada
That has been forever as Canadian "big banks" do not lend speculative capital that creates jobs EXCEPT to the "big boys". That was true even in the fifties when dad went to the USA and became a job creator farm boy, and multi-millionare. It would not have happened in Canada.
3:00 - As a Maritimer, seeing New Brunswick, Nova Scotia, and PEI completely ignored as part of Canada when talking about the economy is one of the most accurate parts of this video.
Maritimer here. Missing 30% of the Canadian provinces in that graphic is a pretty careless oversight, disappointing to see.
Right?!?!?
The handout provinces!
True, they contribute nothing.
@@ML-ov7wo Whatever you say Alberta man.
As a Canadian software engineer who is moving to the states, everything you said was 100% accurate. Housing in Vancouver where im from is so bad that I can't see my self to even remotely buy a condo or an apartment for the next 6-7 years eventho i make well above 6 figures. My American co-worker makes almost double the amount and has to pay way less for the same house 200 miles down the border in Seattle
I hope success for you my friend and peace,take care
Bye bye!
@@js-wq6zy One of the things I hate about Canadians. Passive aggressive schmucks.
@@goclick wow so scientific
And everyone just got laid off and banks collapsed. You get what you pay for. How you faring?
As a Canadian I can shed some light on this: The bedrock foundation of our entire economy is repeatedly selling each other real estate at ludicrous prices. We don't have capital for any other kind of business investment
Canadians have discovered a bug to make infinite money and value
Australia's right there with you mate
@@shm6273 Yes, and the only way to sustain this is to keep confidence high. Once that's gone GG
It's not possible to get rich if all we're doing is cutting each others' hair. Still, this seems to be what most of the so-called First World countries are doing.
So Canada be pretending to be America when in reality it's China.
I get the comparison to the States, but without a comment about Canada's productivity and capital investment compared to other developed countries, I have no idea if Canada is uniquely underperforming on those metrics or the USA is in a category of its own. I might assume the former based on the overall GDP projections, but this could have been much more direct.
@LTNetjak This ^ is a very key part of the puzzle. Aside from that our energy and service industry has taken a big hit due to policies and pandemic handling (tbf it was declining prior to pandemic too)
I agree, I would have liked to see its metrics compared to likes of UK, France, Netherlands, Australia
Agreed! most economies would look bad when compared only to the USA, it's almost as if this video was only about these countries on relation to each other and not Canada from a global viewpoint
The video stated that most countries are less productive than the US.
The difference that was implied though is that any Canadian who wants to move to the US for a higher salary can pretty much just do so with very little effort and essentially no change to their lifestyle.
Even places like the UK where people might get higher salaries in the US have the benefit that most people don't WANT to move that far and disrupt their entire life. Canadians can go south, get US salaries, and still pop back up to visit family and friends whenever they want, making it much harder to convince people to stay here.
Canada’s cost of living is ultra high while salary isn’t so high especially for newcomers. This discourages staying much longer in Canada. Majority of immigrants flee after few years coz they can find higher compensation elsewhere like the US. This leads to brain drain overtime, which has a corresponding impact to economic growth. That’s why Canada is always encouraging huge immigration. To replace the ones who got fed up and fled.
Serious question: Why doesnt the government step in and exert control over the real estate market? From the outside looking in we are told that canada has a very liberal government thats not very corrupt and can make these sorts of changes
I agree 100%. I moved to Canada in late 2020. The cost of living has gone high this year like any other countries, but its considerably higher here . 2021, all I did was work, mostly 60 hrs a week and the outrageous tax rate discouraged me so much I skipped many many work days, forget about the OT in the first half of 2022. I get the part where the video says the value produced by US vs Canadian per hour. Being single and once you cross the minimum income level of 45K CAD, best of luck trying to save. Even after skipping so many days of work I have already paid 25% of my income in tax. Majority of my Canadian colleagues do not work OT forget about working on stat days most of that has to do with high tax rate. Actually I know of a guy who worked as a Business Analyst which netted him 60K a year and being single he was way above minimum income level. Out of frustration he quit his job to work manual labour work which kept his income below the threshold. In a sense I do get the point of govt's claim that they want their citizens to have a quality life which is fair but on the contrary it discourages people to work to their full capacity to produce more value and income to the economy.
This is interesting. Do you think high taxes in Canada are also a factor?
@@xv9021 Ha, all these liberal (and conservative also to be fair) members of parliament are investing in real estate themselves like crazy so why would they do that? Besides, even if they do that and provoke significant drop in housing prices all this homeowners with ridiculous mortgages will go bankrupt. Real estate regulation should have been implemented a long time ago, right now situation is completely out of control and it is sort of a zugzwang - no matter what they do it will become worse. So they do nothing.
@@safroach yeah and you're often just better off in the US, more money, less taxes, better life.
I am a Canadian student who has decided to move to the US for grad school, I will be getting paid at least twice as much as any Canadian schools can offer. I'm glad this way I can focus my energy on my actual research rather than slaving away at grant and scholarship applications during my PhD. It is unfortunate that I will be contributing to this brain drain in Canada, but I'm not offered a good enough deal to stay so I have to look out for my best interests
As a Canadian tech worker, I can give another interesting take. Since the pandemic, a lot of American companies have started hiring tech workers in Canada. Remote work of course. This is extremely interesting for Canadian tech workers, because you keep all of the social securities and overall safe place to live that is Canada but get the American tech worker salary.
Yeah, definitely interesting and it's going to be a boost for Canadian GDP to have more competition for Canadian tech workers. Many more options nowadays.
AND as a member of the Commonwealth, we can grab lots of people from other Commonwealth countries and they get citizenship (without much questioning) in two years. Just try to do that in the USa.
I am intermediate level Software Dev in Toronto and I get emails from recruiters at Amazon every week.
@@pcap8810 Yeah. I stay away from Amazon, pays well but it's torture according to my friends who work there.
Yup. I'm one of those people as is everyone in my circle. Everyone makes 150+ along with the safety and social security of Canada
Canadian software developer here. You hit it dead on. Once my commitments here are done, I will be moving or contracting out of the US to make more money.
yt: ᴛʜᴀɴᴋ ʏᴏᴜ ꜰᴏʀ ʏᴏᴜʀ ᴄᴏᴍᴍᴇɴᴛ.. ʙᴇ ꜱᴜʀᴇ ᴛᴏ ᴄᴏɴᴛᴀᴄᴛ ᴛʜᴇ ᴡʜᴀᴛꜱᴀᴘ ʟɪɴᴇ ꜰᴏʀ ᴄᴏɴꜱᴜʟᴛᴀᴛɪᴏɴ & ꜱᴘᴇᴄɪᴀʟ ᴀᴅᴠɪᴄᴇ ᴏɴ ᴄʀʏᴘᴛᴏ (ʙᴛᴄ & ᴇᴛʜ) *ᴡʜᴀᴛꜱᴀᴘᴘ ✙𝟏(𝟗𝟕𝟖)𝟓𝟕𝟐-𝟎𝟏𝟗𝟒,
And you will learn how to use a gun and get used to paying huge medical premiums, knock yourself out. 🤣
As a software developer living in Canada, I've always been working with the U.S. teams at the U.S. rates.
@@stanostashewski7207 same. working locally in my home town a dev makes like $60k a year. remote at a big canadian tech company maybe $200k and remote for US more like $400k
@@cdollar67 software engineering jobs are eligible for TN visas, if you're a Canadian looking to move to the states.
Honestly,I'm not in any event kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term.
I can’t zero in on the long run when I should be retiring in 4years, you see l've got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/ unstable market doesn't provide any calculated risk opportunities to make profit?
Thank you for this tip. it was easy to find your coach. and I conducted thorough research on her credentials before scheduling a call with her.Based on her résumé, Olivia appears to possess a high level of proficiency, and I am grateful for the opportunity to speak with her
I work at a plant in Canada and the machines we use require a lot of manual labour and are from the 1940s, they constantly breakdown making it very difficult to reach quota, when the machines are running as intended the entire crew is able to exceed the quota with ease. Our US counterpart plant is 90% automated and the workers get paid around 5$ more per hour.
Even though I work for a Canadian company it seems like the share holders see our future in the states, and I get why, since from an economic stand point the US is currently superior in the realm of economics, I know all of our recent expansions have been in the states and the equipment and machines available to them is far superior then anything they’ve invested in up North.
I completely agree i also work in a plant in canada
The US tax system has its flaws but that is one thing they're great about: incentivizing reinvestment. Many business owners and shareholders want to reinvest profits back into the company and it leads to growth and increases in efficiency and it makes companies more adaptable. My local city for example announced a rather sudden raise in minimum wage (if I remember right minimum wage rose by over 50%) and before it even went through many companies had already automated many jobs: you suddenly saw tons more automated kiosks in stores, screens to place your order in restaurants, and even things like automated drink dispensers in fast food places. In many other places you'd expect mass layoffs, people shutting down businesses, or relocating/outsourcing the jobs but in the US they just reinvest money into productivity and efficiency.
Ironically my country went in the opposite direction when our petrol stations replaced car washing machines with human workers. Maybe labour is cheap enough here (or some customers felt the machines were rougher & thus more likely to scratch the paint on cars?)
For the first time, I feel we need a part 2. As a Canadian I feel like a lot of stuff was left out. Everything thing stated is true and accurate but I feel there are alot more topics to cover. I think Canada is in more trouble than anyone realizees.
JOIN US CANADIAN YOU CANT HIDE FOR LONG YOUR GONNA BE THE 51st STATE
Agreed, but the fact that they covered housing is crucial
To sum it up all the penniless third world garbage emigrates here, the local population leaves Canada and the Chinese bid home prices to the moon meanwhile none of the Chinese work or pay any personal or business income tax. All Chinese businesses in Canada function as "cash only" with no receipts for anything.😮
He didn't explain why the US people live 3.5 years on average than Canadians. In Canada we have regain our covid reduction in life expectancy. For me you cannot skip that. Our public health care system alone cannot explain that. That shows there's something wrong inside their country that's not measured by GDP per capita and productivity. A decreasing life expectancy like we see in the US is a sign that there's something very wrong.
@@LamarreAlexandre Well, there is the risk of kinetic lead poisoning.
Joking aside, inequity in access to healthcare, or even nutrition, would have impact on life expectancy.
This video could have done a better job going into the industries that make up Canada's GDP. It just briefly went over the brain drain factor that contributes to the stagnant GDP, but does not go over much of the history.
It's just maple syrup and CZcamsrs. What did you want him to say?
The video is about the stagnation of the economy. Not the quirky economic history of maplesyrup land.
@@interstellarsurfer 😅
For your viewing pleasure czcams.com/video/uRnIHyI02EU/video.html
This channel has become a shill for Keynesian economics. I watch it still to see how other people think
This real estate problem is what I have been telling everyone about here in Vancouver. It is the number one hinderance to growth for us in Canada. Starting or investing in business is too difficult because housing costs soak up all the extra capital of the low to middle class. It is really a shame and at this point there really is no end in sight (afaik).
It'd be great to know ways to make the best out of these crashing market, I mean I've heard of people that netted hundreds of thousands during these times, someone I listened to on a podcast earned over $250K in less than a month, what's the strategy?
You’re right! The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner..
Having an investment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
Plz can you leave the info of your investment advisor here? I’m in dire need for one.
Having a coach is key in a volatile market @Elliot, My advisor is “Patrice Carol Rainer” You can easily look her up, she has years of financial market experience.
If anyone is reading this please know these are scam bots replying to the comment.
I live in Canada, and a poutine break cannot be understated, it's one of my favourite afternoon breaks. We all go into a meeting room, and our company supplies us with some poutines while we say "eh" to each other.
squik squik
Don't forget the maple syrup on tap in the breakroom. Hits the spot before you get on your moose to head home for the day.
Do you also say "sorry" a bunch, too? 🙂
@@QuantumAscension1 Sorry, but no.
dangit.
I knew it
I worked in Canada for a startup. Way more advanced than anything within the region, and we could NOT find domestic funding. Government funding here is *extremely* mismanaged as well. Had to look to American investment and it came almost instantly.
Just amazing how different the economic culture is here to our neighbours.
This is so true, Canada does not have business and innovation friendly policies. It's way easier and more profitable to start a business in the US
@@FurrySpatula it’s so infuriating too because I’ve seen Canadian government subsidized investment going to the most ridiculous, low scale and ultimately most useless concepts Imaginable. It’s so odd. They genuinely have no idea what they’re doing from that perspective.
Same with the startup I intern for, most of the funding comes from the US and EU. More investment comes from India than Canada iirc, its nutty
@@FurrySpatula And this is the same country that promotes itself as "business friendly". What people don't realize is scaling up a business in Canada is a whole different ballgame.
it’s basically our only expertise at this point lol
As a Canadian who has business ties to the US, I seem to think that the Canadian government has less interest for economic growth than their US counterpart. Import policy is more rigid, and the cost is higher. Combined with a much smaller scale of economy, many companies would not enter the Canadian market, instead focusing on the US.
I think the government is too concerned with bringing the economy to a halt to fight global warming.
Um yeah what do you expect? It's kind of a hard sell for Toronto when New York is a few hours away and a larger market. That's just one example.
@@liquiditywso9808 that's why Canada running defict budgets like Trudeau is doing is a bad idea, no Canadian PM has ever run deficit budgets for the same reasons except during crisis.
"Nobody moves, nobody gets hurt." - Canada
I worked with a Software Development organization focused on Healthcare and work with Medical Providers a lot. The number of dinosaur-minded ones I've had to deal with is staggering.
@@niweshlekhak9646 For over 100 years Manhattan businesses have beaten Toronto in global markets. I don't like Trudeau but it isnt his fault. Companies don't have an incentive to do business in Canada. Does it exist? Yes of course, but looking at the bigger picture there's better markets to compete in. Don't really understand the point in your comment. This same problem existed when Pierre was in office because its only natural that the US is a larger market and can't compete with the US. K.
I'm a French citizen who got PR recently, I found the best combination: I got free education in France (1 Bsc and 2 Msc), I moved to Montreal where real estate is much more affordable than Toronto and Vancouver, and was able to buy a 1000sqft condo close to downtown and I'm working for a big US tech company. I'm 29 and I really enjoy life right now!
do you work remotely
Happy to know man!
but you're living in Montreal... 🤔
how do you work for US companies?
@@ML-ov7wo yeah, huge plus for any French speaker that is looking for a confortable life, lots of cultural events and with good job opportunities.
My primary care doctor here in the US was from Canada. The vascular surgeon I used to work for also was from Canada. I can definitely see the issue of Canadian brain drain.
It's been a problem since the 60s at least. One the government has never been able to solve.
@@avroarchitect1793 but Canada attract immigrants from all over the world
@@hecktorrhyanm146 It's how we offset the brain drain loss, but it frankly should be a temporary measure imo.
@@hecktorrhyanm146 not enough to make up for the people we are losing or the ones we've lost over the past decades. Not to mention that the US has even more skilled immigration than us.
@@hecktorrhyanm146 and we make it almost impossible for them to transfer their credentials and work in health care (in Canada)
I've been in IT for decades working for a variety of small-enterprise businesses in Canada and I can tell you that not a single company had even the slightest tolerance for taking risks. This type of attitude is why when you get a mortgage, your Canadian bank uses a system built in the 70s or 80s to process the transaction. American companies are much more willing to move fast and break things so they can stay on the cutting edge of competition.
American companies also seem to be much more willing to pay people their true value, at least in the IT space. I can make probably double or triple my wages if I moved to the states.
Wow really? I didn't think IT guys here were paid a lot. I know there are many who are paid really well, but I didn't think it was that much different from Canada. That sucks.
I've worked in IT for quite a long time too, and change is always disruptive if not outright destructive. Entire national workforces being forced to learn new systems dramatically reduces productivity for the learning period, just as one example, nevermind the actual. disruption of installing and getting the new systems to a stable state.
That said, my wife is also a banker and their computer systems have been updated fairly recently. Far from cutting edge of course, but their old, stable 1980s systems are definitely being used less and less.
Have to agree.
Rubber side down, without risk there is no reward. Investors and business owners must take a certain amount of managed risks. Less risk, fewer rewards.
This is true. The culture of Canada is to be risk averse. Whether it be investments, engineering, and sometimes politics, people here value stability more than profits. It has it's downsides, like you've mentioned.
I emigrated to Canada in the beginning of 2020. And while it is definetely better than the country where I was born I still plan to move to US as soon as I get Canadian citizenship. Housing prices are just insane and even though I wouldn't mind living in almost anywhere else there is just no job for me outside of major metropolitan areas.
Ding! Ding! Ding!!!
The fact our government has set Canada up to be an immigration stepping stone to get to the US, pisses me off. That said, I am heading to the US for the very same reasons you are.
Good call
The best and brightest who find it difficult to enter the U.S. directly use Canada as a stepping stone so your plan is quite common actually. Good luck to you.
@@aheat3036 thanks.
In 1980 the average price of a home in Canada was 3x the national average annual income. In 2018 it was 12x the national average annual income.
Canada is becoming financially hostile at a shicking rate.
What government was in 1980
worth mentionning also that in that time the average salary did not even double...
And now it’s at least 36x
Jed - to point out , the key number to look at is median and not average income .
Highly recommend reading " Three Good Rules for Pundit Behaviour " by Miles Corak which is on line .
He explains why .
Also , the median income has been flat lined in Canada since Keynesian Economics was phased out , beginning in the 1970 's era of stagflation , and replaced with a crony version of neo liberalism .
.
I think Canada deserves a 2 hour video and an in-depth review
@@kyrian2307 this guy is scammer, don't trust him
EE forgot about Canada's maple syrup industry, the most powerful industry in all of human history.
@@basedmatt Trudeau wants to outlaw that industry due to climate change. In fact, just a few days ago he signed into law banning Nitrogen emissions for farmers by 2030. That basically cuts out food supply by over 30% minimum .
I gotta say the intro on this video felt wildly disconnected from the rest of the video, you said at the intro that you are going to explore how relevant the issues of Canada are for the rest of the developed world, and how Canada can fix them, and you did neither of those thing. Even more hilariously for me, you said that Canada's issues are going to affect the US also, but as it turns out, the issue was brain drain to the US.
It feels like what happens when I try to cram a two week research project into a few day. What I write is correct, but I sure as heck didn't have time to elaborate on the subject.
I was thinking the same way. The video should have been 2-3x longer and it would have been much more informative, as it was it was just a superficial puff piece filled with meaningless statements.
It was a huge disappointment coming from this guy as he usually does videos I quite enjoy.
Yuuup.
"Canadians make less value than Americans, if they had more young workers, invested more and more usable land they could improve it"
But we have a smaller population that is AGING, most of our land is tundra, and we simply do not have the same funds available as an economic juggernaut like the US.
"The US has a higher proportion of high earning jobs"
Canada also has lots of folks who move to the US because they are essentially *poached* by higher offers for the same work.
Pretty much every point is "it's because they aren't the US", but... we're not and we're not trying to be...
I'd like to note he made NO mention of our main exports: Oil. Alberta and many provinces are struggling to even sell to begin with because the current federal government is buying off shore oil instead of investing into our own industries. There is also the carbon tax which makes it harder to produce the oil to begin with. Not to mention BC gets a majority of its oil from Seattle or the states. This is an extremely surface level observation. I mean I don't expect much from an international perspective.
@@Rodrik18 Yeah I was surprised that he didn't touch on the reason for this: We are an export nation for raw resources and innovation. The whole rivalry thing is completely backwards because the second our dollar gains is the second the government steps in to try and inflate it back to it's relative level to the USD so it can fulfill it's international quota agreements.
With inflation running at a four-decade high, a Recession is now the ‘most likely outcome for the economy. How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits.
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financiaI-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then.
@@msholt9518 who is this individual guiding you? I lost over $9000 just last week, so I’m in dire need of a financiaI-planner.
.Helen Melissia Carneal is widely known. She has a web presence, you can verify her and use her services if you want.
Any hot dogs
Leave Canada
"Most of my audience is American and they tend to lose interest if they are not mentioned every few minutes..." As an American, I love this. Great content. Keep it coming!
As an accountant, I can tell you that Excel alone improves efficiency 50-fold above a handheld calculator, and even more with more data/volume to process
Wait what?
Companies here use handheld calculators?????
@@honkhonk8009 lol you need them for the CPA and CMA exams
I'm a Canadian tech worker working remotely at a US firm, It pays literally 50% less to work for a local company, with even less Capital investment, it makes no financial sense to look for jobs in Canada, unless their from a big multinational like Microsoft Amazon or Deloitte. Most of my cohort have gone outside of Canada for work and most of the highly skilled tech workers I know have no intention on working for a Canadian company. I'm a proud Canadian, and I love living here, But the job situation is ruinous, and there really needs to be something done about it, before all of the "Canadian Brain" is drained.
EDIT - I recently saw an unpaid internship for the exact same role I have in my Local city while I'm making six figures doing the same job in the US it is atrocious.
Plus housing is far cheaper in the US. The only thing keeping people in Canada is the American Christian taliban.
Same situation as you. I get even more depressed when I know I'm paying more taxes and getting just "healthcare" which I don't even use out of it. The US has a better climate, cheaper homes, and better jobs. If it wasn't for family I would have moved down there. I don't mind gun ownership in the states but don't really like the crazy situation of mass shootings down there. That said, I have more in common with Americans than I do with my own countrymen.
The Christian Taliban is only in some states. Gun ownership works both ways: you are allowed to defend yourself (in most states) instead of having to run away from your own home while a burglar plunders it. In Canada you'll get in more trouble than the burglar if you touch him.
@@carmine6871 Tell me, who paid for your education? Not even considering the rest (water quality, infrastructures, social benefits, paid vacations, paid leaves, etc.)... I think you take a lot of things for granted. A lot of things that do not exist in the US.
Literally the only reason I haven't already moved to the US is because my wife is a nurse that is morally opposed to the American healthcare system. If that weren't the case, I would have left a decade ago.
Not only does the Canadian economy suck a lot more capital into housing (proportionally) than the US, but the Canadian banking system is also extremely concentrated and very conservative, leaving comparatively little money for risky but more innovative uses of capital. Obviously, this all has to be put into perspective. The Canadians seem oddly poorer simply because they always compared to the US. Their economy stacks up a bit better if you look at it compared to other resource-extraction economies.
This is true. Across many different dimensions, the most natural comparison is to be drawn between Australia and Canada, rather than the US.
Moved to Canada 8 years ago and your analysis is spot on. You are putting into words all the things I have noticed about the Canadian economy for the past few years!
Just finished this. Not sure why you didnt even bother to cover what makes up canadian industry - strengths vs. Weaknesses. Or the dynamic change in US tech now employing more canadians via remote. Hope you do a follow up because this video was incredibly US centric and its relationship to the US more-so than a dive into actual canadian eceonomy.
This is because without the American tech space and Petro Technocrats Canada wouldn't exist as a country. In reality Canada in it's current form will probably not exist by the end of this century. Most of the country with the exception of Ontario, Quebec, and BC will most likely be absorbed in the US.
he did make an early video on Canada a few years back. This is the follow-up.
How exactly would he know about canadians working remotely for american companies? I barely know and im a canadian working remotely for an american company
Hi, 'murican viewer here. What was this video about? I kinda spaced out when there was too much gap between mentions of my country.
@@jcole77 You might be Canadian, they tend to space out after not being mentioend for 0.5 ms (as shown in this thread)
I’m a business owner in Canada, in my experience the climate is a major factor in the productivity gap. 4 months of our year were more or less in economic survival mode. Never mind profits, many industries are staying alive using reserves accumulated during the hospitable months.
I’m a business owner in Canada too and I couldn’t agree more. The country pumps for like 6 to 8 months a year, then slows right down in the winter
It does seem rather odd. Canadian winters aren't that harsh along the southern border, certainly no worse than many US cities like Chicago have, and in places like Vancouver, it's pretty mild.
@@hrksknfe That's fair enough, but you could say the same thing about many parts of the US Midwest (apart from the whole daylight thing, but I'd point out the UK is at the same latitude as Newfoundland, and it manages fine), or Alaska. It's not like the US doesn't experience harsh winters in places.
@@hrksknfe Yes, but pretty much nobody lives in northern Alberta, The furthest north large settlement is Edmonton, and that's the most northerly major city in Canada. Climatically, Toronto and Montréal's winters aren't really any worse than Chicago or Minneapolis. Vancouver is only a little further north than Seattle, and has only a slightly cooler climate than the UK thanks to a similar effect of ocean currents.
My point is the US has a number of large cities that deal with cold, harsh winters, just like in Canada, and much of Europe has to deal with darker winters than most of the Canadian population. And I really don't think a combination of both should do that much harm to productivity. European cities don't shut down in winter, and neither does Chicago or Minneapolis. Anchorage is mainly hampered by its isolation, not its climate.
This was my business as well, as soon as December came we would scrape by and then boom March/April you get a surge of business
Yup... I'm a canadian trying to launch a start up.. and wow did you ever hit the nail on the head. If I was starting up south of the border I would have been fully financed months ago.
Nailed the issue of capital! A perhaps related issue is the Canadian tendency to work towards a discounted exchange rate. This does help when exporting goods to US, but importing higher tech becomes more expensive than if the exchange rate was even
Perhaps housing wouldn't be quite as messed up if Canada's immigration policy wasn't so focused on laying out the red carpet for rich individuals who see Canada mostly as a housing investment opportunity that further drive up housing costs and instead made it easier for skilled immigrants who actually contribute and plan to build a life there.
or maybe cities need to allow more construction of multifamily units and tell the NIMBYs to go jump in a lake
Out of control immigration is the number one factor driving up housing costs all over the western world. But it's taboo to talk about it.
If people spend all their money on rent and housing in a consumer-based
economy where people need to spend money on goods and services to grow
the economy, the economy won't grow. It's not that hard to understand
Well then Canadian boomers wouldn't be able to retire in luxury without foreign capital to drive up the price of their homes
Lol they should keep foreign speculators and job stealers out.
I have to agree with the growth forecast. The economy of Canada has become far too reliant on the real estate sales and development market in large part due to the very low-interest rates. With inflation now hitting 8.5% there was no choice but to start raising interest rates, and that's going to hurt a LOT of the construction industry.
And Both Canada and Australia do not have population to backstop domestic demands should export failed.
The kind of social security Ottawa promised need 150 million taxpayers to break even. Do they have that many warm bodies?
@@thanakonpraepanich4284 - Well, they have massively increased immigration, so they are trying. Their goal is 100 million by 2070 Inthink
Perhaps another video worth going into is how Canada is "one" economy with one monetary policy, but for the most part its ten provinces have a lot of independence with their own fiscal policies (ex. health care, infrastructure, their own tax systems, public education etc.). This makes it interesting because while Canada has some issues coming up, different provinces will have radically different problems and solutions. Canada in this sense is a lot more like the EU than the US.
Isn't the USA even more like that? The difference between health care, infrastructure, tax systems, public education etc. Are wildly different in Texas vs California. I don't think there's that huge of a difference in Canada
@@morphkogan8627 Most US states aren't that different and some things like healthcare, infrastructure, education and laws are mostly or entirely shaped by federal policy. The biggest differences are probably state taxes (income/sales/business/property/etc) and business regulation. Only firmly left-wing states are that different (again, not to be political, but because a lot is federal), with much higher taxes on income/sales/property, high cost of living, and more recently a combination of political and tax issues causing businesses to move out of state.
I'm not that sure about Canada but I think the provinces have more power/autonomy and/or tend to vary more significantly with political policy. I know for sure Quebec lost a lot of business/industry with political policies, moreso than California or New York.
I worked at a company in Canada building business jets. We have some employees from Europe, the US and other countries. They all have the same story about how we are so behind the times with our tooling, methods and software applications. They’re saying we’re 10 years behind advances in the rest of the world.
That's horrifying
Canadian here. There is some real suffering here. We are pro immigration but what are we offering immigrants? Relatively low paying jobs and skyrocketing cost of living, especially shelter.
It’s just rich people buying and selling houses to each other.
I volunteer at an immigration center and I can tell you that the immigrants coming to Canada are not minimum wage workers. They are IT workers, filling gaps left by brain drain. They're all highly educated, very hardworking, with excellent resumes and work ethic. The truth is average Canadians can't compete against them once they are established, which actually worsens the problem.
Many immigrants are now bouncing after 1 year in Canada. When you factor in the terrible weather and high cost of living, it's not worth it for many Asian and African immigrants.
Canada has one of the most lenient, if not the most lenient immigration policies in the world. That's the main factor that draws immigrants to Canada. It is much harder to migrate to the US, UK, or any other developed country and it has only gotten more complicated since 2016. Only New Zealand has an immigration policy just as lenient as Canada, and it suffers from the same problems on a much larger scale. New Zealand also suffers from brain drain like Canada, so it takes in a lot of immigrants as well. For many immigrants from third-world countries, it's not a matter of who has the best paying jobs, it's a matter of who will approve them first, and more often than not, it's Canada or NZ. Nowadays, more Indians, Filipinos etc. move to Canada rather than the US, but most Brits, Germans, and Canadians still move to the US.
All they have to do is claim refugee status and they're in for at least several years, then they just disappear.
@@kiaranr Then what is the next popular destination for them? Especially if they are IT workers.
As a Canadian, I would say are biggest issue is an overreliance on resource extraction, an unfriendly business environment and large parts of the economy being controlled by a few powerful companies.
That actually explains the issue better than the entire video.
Isn't the Canadian government hostile to the oil industry?
From what I gather, if 30-something million Canadians don't stop emissions, the world and the close to 8 billion people are doomed to suffer the effects of climate change.
Half of Atlantic Canada is basically just a personal plaything for the Irving family. They own the oil industry, forestry (including processing), Kent Building Supplies (and half the rest of the construction industry), the shipyards and transportation, and _all of the local papers_ (in New Brunswick).
What's left is basically some of the retail space, restaurants, and a tiny IT sector. Isolated from the rest of Canada, N.B. would be recognized as a developing nation with an "endangered" democracy. Nova Scotia is little better, but at least it has a fishing industry, giving it _one_ natural resource not dominated by an effective monopoly. They also still have some "independent" media, in so far as any can be called that.
@@HonoredMule
Well besides King Irving, there is Baron Bragg, head of Eastlink. PEI is a private estate run by Lord Murphy and his family.
@@abedrahman4519 To some degree but clearly keynesian economics in the extreme version even abandoned by JM Keynes himself has been a disaster for most of the world, and especially the biggest countries with the most centralized government systems.
Minor correction:
around 2:40, the provinces of New-Brunswick and Nova Scotia are included in the USA map instead of Canada.
Great video. As a Canadian, I concur 👍
We e don't want your handout provinces
@@angelcabeza6464 😿
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time.
People come here with the aim of chasing money more than knowledge and that will damage your progress, trust me. Chase knowledge first and I promise! The money will follow you just like it's following some of us now.
@@evaluna8096 People wants to do what the 99% does but wants to get results that are fit for the 1%, but it doesn't work that way
@@poltykelsey4890 Investment is the quickest path to financial freedom, the rich stays rich by spending like the poor yet investing! While the poor stays poor by spending like the rich yet not investing.
I do find it odd that you spoke about Canada's economy without mentioning our biggest asset, our natural resources (namely Oil and Gas). Canada is an exporting nation, and I just think it would have been good to at least mention it.
And electcity and clean drinking water export are huge on Québec ...
And the role access to fresh water will play in the coming years.
Oil and Gas aside, we have so many mineral resources that cannot be tapped easily because of conflicts between the different levels of government and the first nations groups. What China has for minerals, we also have, especially the ones needed to make electric cars.
edit: and don't forget our nuclear minerals as well. we have a lot of uranium that could be used to generate electricity.
You speak like somehow canadian citizens are enriching themselves thru selling our natural resources. No only an elite few are so who cares
we're not allowed to mention natural resources because, you know, that might mean having to build a pipeline or something but ZOMG TEH CLIMATES CHANGEZ!!1!1one!!1!1111
"...Americans lose interest if they aren't mentioned every few minutes..." - I love that! So true!
Good video. I’m surprised that he never mentioned the 100’s of billions of dollars of lost investment in oil and gas. Most of the big international players cut back substantially when the current government was elected. I don’t want to get into an argument about the right thing to do for the environment but we have lost a massive source of foreign investment while more questionable regimes around the world have just displaced our market share and the world burns just as much oil as they would have anyways. You can’t build an economy on high real estate prices in Toronto and Vancouver.
As a Canadian I do understand the need to protect the environment even at our expense but if this doesn't actually produce a net reduction in oil use than we might as well continue and the profits could be invested into green energy instead of going to other countries that may use it to fund their millitary or vanity projects.
You nailed that one!!!
As a Canadian, born and bred for some 56 years; I take extreme exception to your Stability & Confidence rating of "9"... Flip that digit upside down.
“They tend to loose interest if they are not mentioned every few minutes.” It’s nice to be understood. 🤗😄
This is so well timed. I'm a 'high-skilled' Canadian moving south of the border this weekend. The offers I received in the United States were about 2x as much money, and the tax rates are far lower across the board. Healthcare is negligible given that I'm young and healthy and that my employer pays for the premiums. My offer is also remote in the US too so I don't even need to live in an expensive market
That's one thing about American healthcare that no one really seems to mention. If you are working your healthcare is basically free since nearly every employer has a health insurance plan. Freaking Chipotle has Blue Shield Coverage which is a super good plan. That's a minimum wage job.
@@DaveSmith-cp5kj out of work, you pay.
Welcome, friend. We’re glad to have you.
@@onionpie52 That's fine. If you retire you should have already have a considerable nest egg and not spend your entire paycheck as soon as you get it. Even if it is something like you got fired, minimum wage jobs provide surprisingly good coverage.
@@DaveSmith-cp5kj No health care if you do not pay in the states, retired people struggle, and coverage is not equitable.
I am Canadian and I found this video to be very interesting. I am surprised that we are less efficient than the US, but when you look at capital expenditure then it makes sense.
Do a video on the Economy of Poland. As one of the few countries to weather the 2008 crisis and having really steady growth for a European economy, I think it’d be very interesting.
As a Canadian IT professional, I see the brain drain first hand, but in IT and in many industries, workers that have moved to the U.S. return to Canada later in life. Many return after 5 - 10 years after building up additional wealth and decide to return for many of the other factors you talked about in the video (government stability, universal healthcare, better public education for their children, etc.). I'm curious whether the statistics referenced in the video about how many people move to and from Canada and the U.S. takes into account those returning to Canada because, anecdotally, I see this very often.
How does that affect the Canadians that don't move to the US? Do they bring in their accumulated wealth, then outbid local Canadians?
@@FakeAssHandsomeMcGee_ Yes, that definitely does occur. Many Canadians return to either move up the social ladder (bigger homes in nicer neighborhoods than when they left) or allows them to enter markets previously unattainable such as Toronto or Vancouver's housing market. It's not that much of an issue though - the bigger problem with real estate in Canada is anticompetitive domestic and foreign investment that is driving prices up. Many of these investors either leave the residences vacant or rent them.
The thing is, if they return after they've retired, they'll contribute little to the Canadian economy but pose a burden for its welfare system.
@@margaretjones777 Not if they've accumulated substantial net worth while earning those higher American salaries, though.
@@NiceTryLaoChe but they haven't paid taxes during the years they were not in Canada in the years when they were making money and would have been contributing the most in taxes. That is why seniors are considered a "drain" - they are not contributing the taxes they once were, but are using services such as health care much more
There are a few other issues that haven't been mentioned.
On the equipment side of things, a lot of companies here, out of pure greed, simply refuse to upgrade decades old equipment, something that directly affects productivity and production costs. Also, a lot of the companies here will gladly sell to an American competitor; something that can be both good and bad. On the good side, these companies might get upgraded gear in the deal. But on the bad side, it often happens that the US parent company will simply shut down the shop putting hundreds of specialized workers out of work.
But the big one (I don't know if it's related to every province) is demographics. We are an aging population with a ton of baby boomers getting ready to retire. Over the years, they have fiercely protected their position by simply dismissing most talented trained and well schooled workers in favor of the ones with 20 years experience. This has sent a ton of people with masters and doctors degrees to go work in call centers and other jobs for which they are greatly overqualified. Now that the retirement wave is starting, companies lack the trained employees they so desperately need while we have a large base of knowledgeable people who need a serious upgrade in their field in order to fill the said positions.
We can already see the beginning of the slip and lets just say it ain't reassuring at all.
Another issue I can see is Canadian employers looking for "Canadian experience". Nothing special about the work experience except the name but many employers simply refuse to consider foreign experience for the job, like seriously!!?
@@gulammohiddin5747 Well I work in architecture and foreign trained architects in my experience have absolutely no idea how many buildings here are put together, particularly wood framed buildings. All they can do is conceptual or schematic design. They also have no idea about Canadian building code regulations. This makes them only marginally useful employees.
If these new Canadians are not willing to supplement their foreign obtained education with Canadian technical expertise they are simply left behind, because there is a new crop of fresh graduates from Canadian schools every year and they will be hired first because they are trained in the techniques of Canadian building. This is a big part of the the issue in architecture (and perhaps engineering?) anyways.
I hope this helps you see why direct Canadian experience is often very important. Perhaps in other fields it's not as significant a problem?
'Pure Greed' lol, sure
@@gulammohiddin5747 Don't worry, employers are very picky even when it comes down to Canada born Canadians. So you're not alone in the same boat.
Comapnies in every country are greedy. That’s their job.
Do you think American companies wouldn’t save more money if their could?
Great video to explain the difference in the level of income between the two countries, but not the growth outlook for productivity.
I am a Ugandan Economics graduate working as a welder making moulds for curved glass in Istanbul Turkey, In 2018 I was denied a work Visum to Canada, I know 5 Ugandan people, uneducated, unskilled who just recently received Visas to Canada.
The Canadian immigration system is very interesting.
I moved to the US from Canada a few months back, the major reason being my ability to buy a house. Housing prices in Canada are beyond egregious right now, a 1200sq. foot house in the podunk rural town I grew up in is now "worth" in excess of 500k. Especially in a place where the only work a guy can hope for is mill work, it's just not sustainable. Moving to a city is now impossible for most Canadians, so, south they come.
House prices here are completely absurd. Other than that we have it way better than the average meth smoker down there.
@@nerdlord2411 way better in what way? Average salary in almost every job is 1.5 to 2 times higher in the USA than in Canada.
@@ululukululu450 If someone suffers a major medical issue, statically it will put a huge strain on their finances for years or bankrupt them. Making more doesn't really mean much when a person gets cancer.
@@nerdlord2411 Really because my family has had a ton of major medical issues and it hasn't impacted us. We were never rich, but did have decent benefits from jobs. Unfortunately not everybody has that in the US and it should be reformed but the idea of going bankrupt over a major medical procedure is pretty overblown. It has basically turned into propaganda for the rest of the world to justify making themselves feel better about their country. I love Canada, but you all have some serious issues and I'd rather stay in the US because my quality of life can be higher here. I don't think that's true for everybody, but it is for the majority.
@Fishy Thats news to me, do you have a source? I would like to learn.
Thank you for mentioning us around 9:03. I almost lost interest in the video, but this gave me the motivation to finish.
“They tend to lose interest if they’re not mentioned every few minutes.” 😂
Felt that one.
As a Canadian, i'm very blessed but at the same time i grow up in a not so rich home & its a struggle, my dads on disability which isnt much & my mom works minimum wage, theyre also divorced, life isnt as easy as one would think here in canada, maybe for middle class but im poor & it sucks, i'm just very glad i'm a Canadian & i have a lot more opportunity, im currently enrolled in college & the government does a great job at helping students & domestic college prices are very cheap
What should have also been mentioned is that the high price of real estate has been used to artificially prop up our GDP in recent years as well 😑
It was a shallow video that said basically nothing
"most of my audience is American and they tend to lose interest if they aren't mentioned every few minutes... " You know us so well! 😂😂😂😂
It’s not funny. Don’t be a sheep, people who watch economic videos are probably smarter than average and don’t need to be treated like idiots. Don’t encourage it.
@@pdw8635 Aww your feelings hurt because someone made fun of america
@@pdw8635 it’s safe to say EE is basing this assertion on CZcams’s stats which he has access to. So, sry for you bro, looks like us citizens tend to be self-centered
As a Canadian, this is a very fair assessment of Canadian economics. We do have soft equivalents to Wall street and Silicon Valley though, being Toronto and Vancouver respectively, but emphasis on *soft* equivalents…
Canada's gone insane politically and is screwed unless a lot changes. Their recent immigration numbers are so insane that it's going to be a radically different country within a decade at most. Even worse, the red tape/bureaucracy seems to make building new housing a huge problem. I don't see them being able to turn things around before it's too late, but I hope I'm wrong.
Nailed it
The reason why we have high immigration is because we don't have babies. Without immigration we would not have enough workers to replace the ones retiring. Someone has to do work and pay taxes. Someone has to pay for the retiring baby boomers and the only way we can do that is with immigration. A lot of countries are aging and they are faced with the same problem but they don't have a solution to the problem.
Yes the face of Canadians are going to change away from the white population that makes up the bulk of Canadian society. If you don't like that then convince your children and grandchildren to have larger families.
My Sister and brother have retired within the last few years. My brother and I have no children. My sister (and her husband) had three children. Only one of her three children (and her husband) has children, two girls. We are not replacing ourselves. We are in decline. The only way to deal with this problem is with immigration.
Canada is also well known for propping up local industries which keeps the cost of living high. The scandal that plagued Trudeau involved the local engineering firm SNC-Lavalin which is propped up by the central government.
is that a bad thing? I'm not a Trudeau fan boy. But you think our industries can survive alone? Tbh we suck at business, it's the truth, that's why the govt has to prop our local industry to keep jobs.
It's gotten so easy for corrupt politicians to funnel government to local companies - all they have to do is wrap it in the Canadian flag and mumble something about creating jobs and the public will swallow it, and maybe even cheer it on, no matter how senseless.
Include telecoms, banking... continuing to coddle Canadians while draining our wallets
A lot of factors make our cost of living high but allowing an engineering firm to bid on government projects is not one of those factors
@@Ryan48219 It is if corrupt companies obtain rents from inappropriately influencing government decreasing economic efficiency.
The responses in this thread lead me to the conclusion that if Canadians are so casual in their acceptance of corrupt practices then you basically deserve to get robbed blind.
I couldn't agree more! A huge problem in Canada is investing in productivity. I have worked with a lot of American companies over the years and it is my #1 observation between the US and Canada is the lack of investment in innovation. We basically wait for Americans to invent something, then copy it.
Americans will do the right thing once they've tried everything else.
Canadians will do the right thing once everyone else has tried it.
The risk-to-reward ratio is very different in the US vs Canada
And the copied products often pale in success to the original especially with the small and spread out population Canada is.
@@NewAb22 Yup. Just look at Canadian television. It's a joke up here. Most outlets here are tax payer funded and there is no motivation to innovate new programming or take risks. It's just cheap knock off shows or sports.
lol, that's also the Chinese strategy.
Good to know finally there is a video on this one. The truth is there are so many people out here willing to work but with all the gatekeeping for the industries it becomes difficult to make any thing happen here. There are handful big industries/oligarchs that do not let the new players in because they are hand in glove with the government. There is all this potential here but no culture of cashing on opportunities. And a highly risk averse mentality. Its a sleepy country.
I feel it's already impacted Canadians. I live in Hamilton Ontario, where once was an affordable city where my one bedroom 8 years ago was $600 a month all inclusive. I live in another one bedroom now that costs me $1250 a month which sounds like a steal considering the average cost of a one bed apartment. However, I have to pay all utilities which averages out my cost to 1450 a month. Whilst I get almost the same in pay as my bills, groceries, staggering car insurance costs and my car payments... I have nothing left for anything else.
Hamilton is now the 5th most expensive place to live in the world next to Toronto. Which is insane. Honestly I've never struggled more in my entire life and I can only feel for those who are struggling the same or even worse.
As a Canadian entrepreneur I was impressed with your assessment however there is one key thing you didn't mention that I believe is one of the most fundamental differences between Canadian and US entrepreneurs. Attitude and mindset. I love doing business with Americans, they're cowboys. Canada is just not an entrepreneur minded country. There's a saying, in Canada no one wants to be first, everyone wants to be second, and let me tell you that is very true.
I think most people in Canada would rather live a more chill life instead of chasing greed like a bunch of rats.
@@nerdlord2411 I agree. All these comments about moving to the States for a higher wage. Reminds me of the people (likely the same) who complain about skilled migrants coming into Canada instead of "making their country better". As if chasing a dollar is the same as escaping war, true poverty, and disaster. Most of the Millennials and Gen Z I know just want to live a comfortable life, have some fun, and make sure their society is happy and healthy.
Totally agree. It's an extremely risk-averse culture. The best way to ensure mediocrity is to avoid risk.
That's not a saying and you made that up.
@@nerdlord2411 100%
As an "IT" worker there's some fun stuff happening for Canadians thanks to work-from-home where as long as a US-centric business has any office anywhere in Canada they can employ Canadians for remote work. This provides us the opportunity to stay in low-cost-of-living parts of Canada while getting way more than we need to live and out-compete US programmers for accepting cheaper salaries. Our position above the US also helps us stay in time zones where meetings don't have to be during someone's supper or in the early morning hours. I could understand US-first policies to force companies to get people back to the office to mitigate this phenomenon, but while it lasts it's pretty neato.
Low CoL in Canada is super hard with this real estate market
Most the people I know who do this make ~70% of the salary an American would be paid, then also have to pay far higher income taxes, and have similar or worse housing costs. The issue in Canada is that there are basically only a few 'big' cities whereas they are many moderate-sized cities with opportunities in America. 3 of my friends who were Canadians working remotely for American companies have finally just full on moved to the US because their quality of life improved so significantly.
But either way the point stands. As a Canadian in IT, it gets harder and harder to justify ignoring your own self interest over time.
🤷
@@sciencemanguy Definitely involves living in a relatively remote location, not so bad with satellite internet and the like. But yeah ultimately I can imagine low-cost-of-living easier to find in rural US :/
I truly believe that if more businesses embraced permanent WFO, we'd make some serious progress. I know so many professionals who don't WANT to be in Toronto or Vancouver, but currently have no choice (besides moving to the US). Supporting people to move to more rural areas while keeping their current wages would solve a bunch of problems all at once. Sure they won't make as much as they would in the US, but there are plenty of us who are fighting tooth and nail to not move there anyway. Canada makes that difficult.
@@karissamilbury7160 honestly, facilitating remote work programs like encouraging them whenever possible in government programs would help a lot. A big reason why people don't live in rural areas at the moment is because of high transportation cost (we need public transportation infrastructure in both US and Canada) and low paying jobs rurally. Remote work would ease both of those and distribute work from the inner cities to outside the cities.
Great video Economics Explained, thanks for your hard work here! Sorry to mention it, but, in the geography section, the Maritimes are incorrectly shown as part of the United States. Just thought I'd let you know as we're commonly mistaken as part of New England and thus the US. Cheers and thanks again!
Another thing that has really screwed the Canadian economy is red tape. It's almost impossible to start any big projects.
In Ontario, we have one of the biggest mineral deposits in the world called the ring of fire. Developing it is a no brainer, it is rich in metals like iron, copper, nickel, and chromium, but also has large amounts of platinum and palladium. Estimates have put potential values of the minerals at 120 billion. However, rather than opening up mines, we have spent the last 20 years talking about whether we should allow the area to be developed.
Energy has also been mismanaged. In BC, they have been working on a hydro dam for 12 years (proj completion in 2025 but I doubt that). It will have a 1.1 gw capacity but is estimated to cost 16 billion when all is said and done. Saskatchewan released a time schedule for building a nuclear reactor. It has 7 years of paperwork and consulting to start construction, whereas the actual construction time is estimated to be 3 years. In Ontario, we decided to go forward with large numbers of wind and solar projects that cost 150-800% the cost of our nuclear plants on a kwh basis and doubled our energy rates as a result. To help pay for this, we didn't put away any money to refurbish one of our nuclear plants, and it will now be closed down and replaced with gas plants because there is no money to bring it up to speed.
0:01 “This is Canada.” Exactly what someone from Toronto WOULD say.
As much as I love Toronto, this made me LOL. Cheers!
It is the heart of the nation.
What I find interesting is Canada has been forecast to slip out of the top 10 GDPs every year within a couple years. There have been times where it's fallen out, but always makes it back in.
My takeaway is economists are terrible at forecasting GDP. I'd bet despite projected struggles it'll be there 20 years from now.
Exact.
Its entirely based on the energy sector.
Especially if we encourage entrepreneurship in Canada. I'm sure we'll stay rich. But we need to fix some fundamental flaws in our economy.
If Canada stays in the top 10GDPs, then the GDP/capita will probably be half that of America's or less. Replacing improved economy with more people.
Canada won't stay top 10 simply because it's too small.
U might import millions of immigrants in order to solve it. Or just annex yourselves into the US
You missed the biggest issue that is effecting Canada. The Federal Government is blocking most resource development in the name of climate change and also now demanding reduction in fertilizer use. This will devistate farming. These are the true reasons for the issues
Also i would like to add that the issue you have pointed out in the video are nothing new. They have always existed. What has changed is Canada's treatment of the industries that are its backbone.
@@cgodlien The same is true for America
We have massive oil and gas resources in america but the Biden administration is not granting leases/licenses at all due to climate change reasons
The solution to inflation is right here is america. All they have to do is let ameican companies dig more. But they are not doing that due to their bs climateagenda
I’m glad you highlighted high realestate prices as actually being detrimental to the economy. Of course being Australian, we know all about that..
I'd like to see these productivity comparisons also adjusted for climate. The U.S. has a lot more range of climate - especially winter climate - and I've seen first hand how the long winters drag everyone down both in terms of mental health and physical capacity.
Generally speaking hotter countries are less productive than cold ones economically in the tropics it’s quite literally too hot to physically do any work for numerous hours a day so if anything Canada should be better off here
@@sirsurnamethefirstofhisnam7986 I don't buy it. The U.S _is_ the colder climate with plenty of temperate areas and a mix of cool summer in the north and warm winter in the south. Canada compares more to Russia and Siberia in climate, which are all well set apart from the more reasonable averages of Europe, UK, and USA.
To find nations _truly hampered_ by heat, you've got to get a little hotter (and more consistently hot) like Mexico, Brazil, and Egypt.
There's such a thing as too cold to physically work too - it just requires the kind of extremes for which Canada and Russia are virtually peerless.
Mosf of the US northern-border states have stronger economies than Canada.
@@sirsurnamethefirstofhisnam7986 just think about this, canadian construction companies have on average from 4-5 months to 8 months of the year to work. Ik that's just one industry but it puts into perspective that an entire country worth of one industry doesn't function at 100% 50% or even 20% of its capacity for 1/3 of a year. Also agriculture, USA a lot of it gets to benefit from two harvests, were as canada only gets one. in august/september, then its waiting time until april/may
The US figure includes a long list of billionaires. You need to look at the wealth distribution. This has been explained countless times on here.
Sure compare Canada vs the world’s largest economy .. (Silent rivalry?).. but how about Canada vs rest of OECD?
Why is Canada predicted to be worse performing than.. the UK? Spain? Australia?
I’m not too sure. I’m from the UK and I doubt that Canada will be the worst performing. When all is said and done, Canada is rich in natural wealth, It’s oil, minerals etc per capita is way higher than most of the world.
Also a v talented and skilled workforce, relatively low corruption, being situated between two oceans. If it performs the worst over the next decade, it can only be down to gross mismanagement. There is no reason for why it shouldn’t succeed.
I believe he is basing this off the 2021 OECD gdp growth predictions. In their report the OECD predicts low growth for Canada largely because Canadian companies have by far the lowest capital reinvestment rates in all of the developed nations. I'm not sure why the OECD puts so much weight on this one metric given that Canada's gdp growth will be much higher than most developed nations just from the fact that its population growth is much higher.
Yeah. Video totally didn't answer its own questions.
I believe his point was that Canada is suffering from higher amounts of brain drain than the other countries you mentioned, harming its economy.
@@Dusk007 Hard to believe that when by his own video only 45,000 Canadians move to the US per year. That means they only lose 1.5% of their population PER DECADE to the US (and certainly not all of those are skilled workers).That's offset by 400,000 brainy foreigners move TO Canada per year most of whom are skilled workers. I mean I'm sure it's a problem but a problem severe enough to give it the lowest growth over the next 40-50 years? The low rate of capital investment is a problem but that's because they're becoming considerably more left leaning, ie people that thinks wealth comes from a money printer and selling each other expensive houses and insurance.
I’m a New Yorker dating a Canadian trying to get me to move to Toronto. Thanks for giving me some ammunition in my argument to stay 😅
Thanks for mentioning us American's every couple of minutes. We really do love it.
Apparently Nova Scotia New Brunswick and PEI are in the USA. When did the USA annex these province's? 🤣
I think it's showing the future
Yesterday. I'm sorry but we've waited long enough, it is the season to invade your neighbors according to Russia.
It is showing the future. Those provinces and the plains provinces will be absorbed into the US over the course of this century.
@@magivkmeister6166 Nah, no way the US would want Canada's most stridently under-performing provinces. They're just one giant cash sink and populated mostly by destitute pensioners. Atlantic Canada is the brain drain center _within Canada._ If your last name isn't Irving, it is not for you; you are for it.
NO STOP THE COPE CANADIAN AND JOIN OUR UNION AND ADD EVERY PROVENCE AS A NEW STATE, except Quebec they kinda weird
As an immigrant who emigrated to Canada in 2018 and just turned Citizen this year.. I am considering moving to the States.. It is just unbelievably expensive to live here..
I work in Tech and the pay is much better, with less taxes and cheaper housing.. Basically a no brainer..
See ya!
Many are in the same boat, including me.
Wait cheaper housing .unless you are living in Vancouver no City in cad even comes close to how expensive la ,sf, are or even other cities like my etc etc
@@bloodwargaming3662 Toronto is in the same boat. RE is out of reach to the masses.
Canada is lacking in wage growth and innovation.
NY, LA and SF are much better in terms of wages and innovation but not much better in terms of COL. But cities like Houston, Dallas, Austin etc are better in terms of wages, innovation and COL.
The blame for that is all because of the Chinese both local and foreign driving home prices to the moon. Rents now are more than what a lot of jobs pay in a year. A minimum wage job doesn't even cover the rent on a studio apartment not including utilities. In Ontario the local Chinese drive home prices to the moon and out in British Columbia its the foreign Chinese that drive home prices skyward. The Canadian government can never ban local Chinese from buying homes so all the locals in Ontario will be priced out of the housing market forever unless the real estate market implodes in China and contagion spreads to Canada.
You really understated the impact of the real estate bubble on the economy.
@3:00, love that he included the Maritime Provinces as part of the USA, all good tho, they’re a small portion of the country
A few odd typos in that chart at 8:12, misspellings of Canada ("Canda"), India ("Indea"), and Russia ("Rusia").
That's what happens when you outsource your editing overseas
That's why Economics is called the Dismal Science.
Even though "outliar" industries do not employ the most people, they still attract the most attention and are the most valuable and economics is the science of value.
Also, Canada has a ton of resource extracting industries
Sadly we have a government that is intent on killing most of our resource industries as part of Trudeau’s war on climate change.
3:04 Didn't know New Brunswick, PEI and Nova Scotia was now part of the US, cool. You can tell these folks did their research.
Also, Canada doesn’t have enough new workers to replace those who are retiring. For example, in Quebec, there are some regions where out of 100 vacant positions, only 45 are replaced.
As a middle income Canadian, my biggest regret is not choosing a field where I could easily transfer to the States. The demographics of where I have grown up have changed so rapidly and my friends and I feel like second rate citizens due to the high cost of living. We're being pushed away into areas we don't belong. If I had to leave my neighbourhood then I'd rather just jump the whole ship to a new country. No matter where you go in Canada its all the same core issues.
Just look at how our government treats the working class. They provide lip service but continually squeeze the blood sweat and tears for greater productivity at the expense of passion and pride. Despite the online reputation of a friendly and progressive country I can attest that it is all just a shell. Most young people in Canada feel disenfranchised and burdened.
In Ontario, the Ford government won a majority despite winning a minority of the popular vote. It's messed up. Who gets the blame? Not the shitty election system. Nope, disenfranchised young people that didn't vote. Everything is their fault and burden. Nobody actually cares to address any of the root issues in Canada. It's the ultimate country for putting on a show at the expense of its own citizens.
yt: ᴛʜᴀɴᴋ ʏᴏᴜ ꜰᴏʀ ʏᴏᴜʀ ᴄᴏᴍᴍᴇɴᴛ.. ʙᴇ ꜱᴜʀᴇ ᴛᴏ ᴄᴏɴᴛᴀᴄᴛ ᴛʜᴇ ᴡʜᴀᴛꜱᴀᴘ ʟɪɴᴇ ꜰᴏʀ ᴄᴏɴꜱᴜʟᴛᴀᴛɪᴏɴ & ꜱᴘᴇᴄɪᴀʟ ᴀᴅᴠɪᴄᴇ ᴏɴ ᴄʀʏᴘᴛᴏ (ʙᴛᴄ & ᴇᴛʜ) *ᴡʜᴀᴛꜱᴀᴘᴘ ✙𝟏(𝟗𝟕𝟖)𝟓𝟕𝟐-𝟎𝟏𝟗𝟒,
Trudeau as well won a majority with having a minority. The system is broken.
I really feel you here, we have very similar problems in Finland but I think we're actually even worse off than you and next to Russia :/
I’m 21 and living in New Westminster, BC. I cannot for the life of me figure out why my average monthly bills are so high for menial items like food and especially my phone bill. The more I save money, the higher it seems my cost of living gets.
What are the areas that help in moving in states? And what did you choose that don't help. Everything sells in states
As Canadian, who did move to USA for two years to work I can absolutely say you’re saying the cold hard truth. But, I guess you forget that huge chunk of those Canadians who move South, do move right back to Canada after 2-5 years and start businesses and a lot of other things as well. Canadians are very patriotic as well ! Lol 😝
We should compare each province to state, and not each country to country.
@@honkhonk8009 do candian provinces have as much power as us states
@@MrReplay2 nah its more federalized in canada.
What I mean though, is that BC should have open borders with washington and Oregon. It makes more sense economically, and is already happening basically.
Also, ontario is already integrated hella with the east coast. it would be great if we threw away the useless formalities with it.
Also its partially Canadas fault. Were allowed to work in America, but Americans arent allowed to work in Canada. Its such a stupid rule and fucks our economy over.
It's interesting seeing how canada and australia are so close on the leaderboard considering the population difference
This feels like half a video. So much so that now I doubt the veracity of every previous Economics Explained video I've watched.
You failed to mention Canada's complete lack of limits on foreign (Chinese) purchasing of their real-estate.
@@dudebros6122 India not so much. Most indians actually want to live here.
No one in Government wants limits. Canada supports $30-40 Billion a year in money laundering in the real estate market on top of that. I once asked an MP about it...he said "yeah I know, but its good for the economy". If you walk into a bank and want to deposit $15K in cash, they want to know where you got the $$. Transfer $2M from Moskow, Ankara, Tehran, Tripoli or Panama City to buy real estate no one cares.
Through foreign students, the Chinese investors have also found a way to circumvent capital gains taxes for a great tax free investment.
As a Canadian small business owner, a huge problem in Canada is our overbearing government bureaucracy that stifles innovation and growth.
Just the cost of having a “stable government”.
The apparatchiks in Ottawa know not what they do when they drive the country and it’s economy into the ground.
Amazing video. Well researched info.
I would like to point out that there are some typos at 8:15. It's Belgium, Canada, India and Russia.