It does nothing to improve our crappy productivity, it provides a crutch for businesses to rely on.
A higher dollar doesn't instantly mean greater productivity.
A higher dollar puts pressure on exporters which means they are even less likely to spend money on importing and investing into machinery and processes that increase productivity.
Productivity is boosted by capital first and foremost. A business has a lot of capital, they can invest in productivity. The issue with Canada and Europe is trying to compete with the capital behemoth that is the USA.
Then, there is research and development, which Canada lags the USA and Europe in, which has little to do with the strength of the dollar.
And then there is inefficient capital investment, so even when capital is invested into R&D, we don't exactly have a culture of tech startups resulting from it or massive leaps in industrial productivity. Pretty much, in Canada, if we cannot use it to get oil out of the ground faster we tend to discard it.
So we can can go with the simple "low dollar, low productivity" thrope or we can address the structural issues at play.
Australia has higher productivity than canada, and their dollar is lower. The Europeans have a lower productivity than the USA despite the EURO being stronger.
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