The low productivity of Canadian companies threatens our living standards

[RangerRay]

Behind a paywall…

Our productivity crisis will be exacerbated by the upcoming tariffs, but no one in Ottawa seems seized to fix it.

Opinion: Trump’s tariffs are about to exacerbate Canada’s productivity crisis. Will our legislators finally take action?

If Canada falls further behind the United States and other industrialized countries when it comes to labour productivity, our standard of living will take a serious hit

www.theglobeandmail.com

 

[Good2Golf]

Behind a paywall…

Our productivity crisis will be exacerbated by the upcoming tariffs, but no one in Ottawa seems seized to fix it.

Opinion: Trump’s tariffs are about to exacerbate Canada’s productivity crisis. Will our legislators finally take action?

If Canada falls further behind the United States and other industrialized countries when it comes to labour productivity, our standard of living will take a serious hit

www.theglobeandmail.com

Low productivity exacerbated by a Government policy to remove oil and gas revenues from Canada’s economy.

Part of why Canadian per capita GDP is 32% lower than US pc GDP and worsening…

Trevor Tombe: The Great Divergence: Canada’s economic gap with the U.S. reaches a new record

thehub.ca

 

[daftandbarmy]

Low productivity exacerbated by a Government policy to remove oil and gas revenues from Canada’s economy.

Part of why Canadian per capita GDP is 32% lower than US pc GDP and worsening…

Trevor Tombe: The Great Divergence: Canada’s economic gap with the U.S. reaches a new record

thehub.ca

And a bunch of other stuff too...

The productivity problem​

Senior Deputy Governor Carolyn Rogers talks about some of the reasons for Canada’s poor productivity track record, and what we can do to turn the tide.

What’s behind highly productive economies​

Three elements contribute to stronger productivity:

• capital intensity—giving workers better physical tools like machinery, and using new technologies to improve efficiency and output
• labour composition—improving workers’ skills and training
• multifactor productivity—using capital and labour more efficiently

Considering these, there are two basic strategies to improve productivity: focus the economy on industries that add greater value, and be more efficient with the work we’re currently doing. Canada generally hasn’t performed well on either front. This needs to change if we want to ensure a stable and prosperous economy for everyone.

Canada needs to do better​

When we look at the factors that drive high productivity, we see some clear areas for improvement.

Canada can focus more on making sure the training and education we provide teach the skills we need for jobs today and in the future. This includes post-secondary learning and apprenticeship programs that better respond to what employers are looking for. It also involves leveraging the skill sets of the many new Canadians who immigrate here.

A more competitive business environment would also help drive greater innovation and efficiency. This is particularly important for small and medium-sized businesses that can’t take advantage of the economies of scale afforded to larger companies.

Perhaps most importantly, Canada’s investment levels are nowhere near as high as they should be in the areas of machinery, equipment and intellectual property. In fact, investment levels have decreased over the past decade.

The productivity problem

Senior Deputy Governor Carolyn Rogers talks about some of the reasons for Canada’s poor productivity track record, and what we can do to turn the tide.

www.bankofcanada.ca

 

[Good2Golf]

Perhaps most importantly, Canada’s investment levels are nowhere near as high as they should be in the areas of machinery, equipment and intellectual property. In fact, investment levels have decreased over the past decade.

Well, post-nation states don’t need anything specifically tied to a national identity as they’re no longer a nation. The previous citizens of the nation state are now global citizens unburdened by any kind of national pride.

 

[daftandbarmy]

Well, post-nation states don’t need anything specifically tied to a national identity as they’re no longer a nation. The previous citizens of the nation state are now global citizens unburdened by any kind of national pride.

It's a failed experiment, and we're the collateral damage....

Trudeau erasing Canadian history to achieve his post-national vision​

Many Canadians now appreciate the full context of Justin Trudeau’s comment back in 2015, when he surmised that Canada would become the “first post-national state.” Having just become Prime Minister of the country, Trudeau stated in that often-quoted New York Times interview, “There is no core identity, no mainstream in Canada” when it comes to our national identity.

Perhaps Trudeau was off-side to say that in 2015, however, as a result of his systematic approach through the last eight years, PM Trudeau and his political operatives have effectively been erasing Canadian history to achieve his post-national vision.

As a point of reference, Wikipedia provides a definition of post-nationalism as: “the process or trend by which nation states and national identities lose their importance relative to cross-nation and self-organized or supranational and global entities as well as local entities.” The factors constituting the post-national process include shifting national economies to global ones, increasingly referencing global identities and beliefs, and transferring national authorities to multinational corporations and the United Nations.

Trudeau erasing Canadian history to achieve his post-national vision

Since taking power in 2015, Prime Minister Justin Trudeau and his allies have systematically sought to, at best, minimize and, at worst, expunge everything that makes Canada a unique and laudable nation. Photo credit: The Canadian Press/Graham Hughes Many Canadians now appreciate the full...

niagaraindependent.ca

 

[daftandbarmy]

Truth...

 

[Brad Sallows]

This observation about inheritance flows isn't about productivity, but probably applies to Canada. As long as birth rates are low, intergenerational wealth flows might be large, and counteract the real or imagined ill effects of policies thought to transfer wealth from young to old.

 

[daftandbarmy]

Meanwhile, the chaos is winning....

Almost half of downtown Victoria businesses open to leaving if lease expires: Survey​

Forty-eight per cent of downtown Victoria businesses say they’d consider pulling up stakes and moving if their lease expired this year, according to a new survey.

It’s one of the findings of a report compiled by the Downtown Victoria Business Improvement Association that the group’s CEO says is a “wake-up call” to all levels of government.

“This isn’t a new phenomenon; this has been building up for years, and this is why our businesses say they need action now,” Jeff Bray told media on Wednesday.

Almost half of downtown Victoria businesses open to leaving if lease expires: Survey - BC | Globalnews.ca

A new report from a Victoria business group says 48 per cent of downtown businesses would consider moving out of the core if their lease was up this year.

globalnews.ca

 

[Brad Sallows]

Meanwhile, the chaos is winning....

Almost half of downtown Victoria businesses open to leaving if lease expires: Survey​

Took them a long time to get to the point: the people wanted as patrons are put off by the people who mostly inhabit the streets.

Vancouver has some notions about "revitalizing Granville". (I wonder how many of the proponents are aware this was also attempted in the 1970s.) The fundamental problem is the same: the desirable people don't care to rub shoulders with the undesirable people.

I suppose others will lecture from a high place about inclusion and prejudice, which they are free to do. Nevertheless, potential customers are free to ignore the rhetoric and go elsewhere.

 

[Genetk44]

It always comes back to the same things……over-regulation, excessive levels of red-tape and badly designed, overly-complex government to client U/I …….all of which negatively impacts business,finances and creativity.

 

[daftandbarmy]

It always comes back to the same things……over-regulation, excessive levels of red-tape and badly designed, overly-complex government to client U/I …….all of which negatively impacts business,finances and creativity.

And failing to deal with ongoing public safety issues ...

Downtown businesses in Vancouver, Victoria want changes to supportive housing, citing public safety concerns​

​

Alan Goodall has owned the Aura nightclub in Vancouver's entertainment district for 16 years, and he says the situation for his business has never been worse.

"Just in the last month alone, my ceiling has caved in in three different locations, three times," Goodall said of his club, located on the ground floor of the former Howard Johnson hotel on Granville Street.

The B.C. government purchased the hotel for supportive housing in 2020, and since then Vancouver fire crews have been called to the site 906 times, including for a fire on Wednesday.

Vancouver police also say they've been called to the housing site thousands of times since it was converted.

Downtown business problems aren't just affecting Granville Street. Business leaders and others in Vancouver and Victoria say the mounting number of public safety concerns in the downtowns and lack of action from the province is promoting them to rethink their operations.

"Just last month, I was closed for 16 days. I had 50 staff members out of work, people who lived paycheque-to-paycheque were given 24 hours notice and they didn't know how they were gonna pay their rent," Goodall said.

https://www.cbc.ca/news/canada/british-columbia/vancouver-businesses-frustrated-1.7560644?cmp=newsletter_CBC%20British%20Columbia_1633_1948183

 

[Quirky]

Downtown businesses in Vancouver, Victoria want changes to supportive housing, citing public safety concerns

They want changes yet Vancouver and Victoria keep electing NDP, hoping for a different result. Insanity.

 

[Brad Sallows]

Many people in Vancouver and Victoria want to alleviate the plight of the very unfortunate. One of the principles they want to maintain along the way is to integrate, not segregate. Still, it takes a very special kind of stupid not to anticipate that "social housing" is usually at risk of becoming a kind of blight, and to put it in the areas that are supposed to be entertainment and tourist zones. It's a bit like plowing with ample salt before putting in the crops.

 

[RangerRay]

The Danes are one of the happiest and most productive countries in the world. It may have something to do with the attitudes of their business executives.

7 things I heard in Denmark that shocked my American brain

What Danish executives, economists, and expats revealed about work, life and hobbies

professoroffduty.substack.com

7 quotes from Denmark that shocked my American Brain:​

1. “For someone to say ‘I’m stressed’ is a very serious statement and one that must be solved.” Danish economist
   
   This floored me. In Denmark, “stress” is a flare—an urgent signal to family, friends, and colleagues that something must change. Often, that means sick leave and then a restructuring of workload upon return. In the US, “stressed” is as casual a response to “how are you” as “busy.” In Denmark, it’s not normal, nor acceptable, to operate under stress for long stretches.
2. “It’s not the hours that make us smarter.” Danish SVP, multinational bank
   
   In the US, we conflate long hours with competence. The busier the calendar, the more important the person. In Denmark, leaders are measured by their ability to ensure the work gets done in 37.5 hours. If someone consistently stays past 4 pm, they’ll be asked why they can’t manage their workload.
3. “If you have unhappy mothers, it ripples through society.” Danish economist
   
   I audibly gasped. Why does American society consistently make choices that all but guarantee mothers will be unhappy? In Denmark, maternal well-being isn’t framed as a private issue—it’s understood as foundational to the well-being of the entire society.
4. “Time is your greatest luxury: the one thing government can’t tax.”Danish e-commerce director
   
   Everything is taxed in Denmark, and that’s how universal childcare, healthcare, education, and dignified end-of-life care are funded. Because it’s hard to get rich, time—not money—becomes the ultimate measure of wealth. Sure enough, everywhere we looked, Danes were hobbying.
   
   https://substackcdn.com/image/fetch...e07-9b6d-422e-93f4-766b22edda3c_768x1024.jpeg
5. “Hygge means unambitious enjoyment. It’s shared by people you know, and most often inexpensive.” Danish work culture expert
   
   I’ve read countless definitions of hygge, but this one was refreshing. I’m so used to blankets, candles and other Instagram visuals of coziness, when it’s really about giving yourself permission to go Off Duty.
6. “My goal as a leader is to make sure my employees remain whole human beings.” Danish SVP, multi-national bank
   
   This isn’t about “bringing your whole self to work.” It’s about protecting employees’ energy so that they have something left for their families, friends, and hobbies. If work leaves you so depleted that all you can do is scroll, that’s a failure of leadership.
7. “I’m watching my kids have the childhood I had in the ’80s.” American expat working for Bain
   
   This one hit me hardest (and I had a cry). It captures what so many of us yearn for our kids: unstructured play, safety, independence, and freedom from over-scheduled, over-parented lives.

 

[daftandbarmy]

The Danes are one of the happiest and most productive countries in the world. It may have something to do with the attitudes of their business executives.

7 things I heard in Denmark that shocked my American brain

What Danish executives, economists, and expats revealed about work, life and hobbies

professoroffduty.substack.com

7 quotes from Denmark that shocked my American Brain:​

And, at 56%, it has the world's highest taxation rate...

Mapped: The Highest Marginal Income Tax Rate in Each Country

Taxes are due for residents in several countries. How much does your income attract compared to others? We look at tax rates to find out.

www.visualcapitalist.com

 

[Fishbone Jones]

And, at 56%, it has the world's highest taxation rate...

View attachment 95313

Mapped: The Highest Marginal Income Tax Rate in Each Country

Taxes are due for residents in several countries. How much does your income attract compared to others? We look at tax rates to find out.

www.visualcapitalist.com

Hmmm, don’t know about that. Everything I've read, for the last few months, has Canadians paying between 42% and 46% of their income to taxes. Perhaps 33% is just the base income tax. Then you have to add in property tax, sales tax, consumer tax and the other myriad of taxes the government imposes on us.

Anyway, the government collected just shy of $460 billion FY 23-24.
Composition of Revenues for 2023–24 (Total: $459.5 billion)

Annual Financial Report of the Government of Canada Fiscal Year 2023-2024 - Canada.ca

Annual Financial Report of the Government of Canada Fiscal Year 2023-2024

www.canada.ca

Our government wastes too much of our money.

 

[Fishbone Jones]

And a bunch of other stuff too...

The productivity problem​

Senior Deputy Governor Carolyn Rogers talks about some of the reasons for Canada’s poor productivity track record, and what we can do to turn the tide.

What’s behind highly productive economies​

Three elements contribute to stronger productivity:

• capital intensity—giving workers better physical tools like machinery, and using new technologies to improve efficiency and output
• labour composition—improving workers’ skills and training
• multifactor productivity—using capital and labour more efficiently

Considering these, there are two basic strategies to improve productivity: focus the economy on industries that add greater value, and be more efficient with the work we’re currently doing. Canada generally hasn’t performed well on either front. This needs to change if we want to ensure a stable and prosperous economy for everyone.

Canada needs to do better​

When we look at the factors that drive high productivity, we see some clear areas for improvement.

Canada can focus more on making sure the training and education we provide teach the skills we need for jobs today and in the future. This includes post-secondary learning and apprenticeship programs that better respond to what employers are looking for. It also involves leveraging the skill sets of the many new Canadians who immigrate here.

A more competitive business environment would also help drive greater innovation and efficiency. This is particularly important for small and medium-sized businesses that can’t take advantage of the economies of scale afforded to larger companies.

Perhaps most importantly, Canada’s investment levels are nowhere near as high as they should be in the areas of machinery, equipment and intellectual property. In fact, investment levels have decreased over the past decade.

The productivity problem

Senior Deputy Governor Carolyn Rogers talks about some of the reasons for Canada’s poor productivity track record, and what we can do to turn the tide.

www.bankofcanada.ca

It's not Canada that has to do better. It's the government that needs to do better.

Fuckers.

 

[RangerRay]

And, at 56%, it has the world's highest taxation rate...

View attachment 95313

Mapped: The Highest Marginal Income Tax Rate in Each Country

Taxes are due for residents in several countries. How much does your income attract compared to others? We look at tax rates to find out.

www.visualcapitalist.com

And yet the Danes beat us in productivity and happiness.

 

[daftandbarmy]

Tariffs + poor productivity = even bigger productivity problems...


Canada’s productivity crisis just got worse with biggest plunge in three years

Business output drops because of trade uncertainty with United States


Canada’s productivity crisis worsened in the second quarter, with labour productivity dropping by one per cent, Statistics Canada said on Wednesday.

The last time labour productivity declined this sharply was in the fourth quarter of 2022, when it fell by 1.1 per cent.

Trade uncertainty led to a pullback in business output, with nine out of 16 industry sectors recording decreases, with the largest declines reported in manufacturing and wholesale trade.

“Overall, manufacturing and wholesale trade were the main contributors to the decrease in business sector productivity in the second quarter,” the report said. “These two sectors — which are heavily dependent on merchandise trade — were particularly affected by the uncertainty surrounding Canada’s trade activities with the United States during the quarter.”

The business goods sector reported a larger reduction in productivity during the quarter compared to the business services sector. Hours worked in the second quarter increased by 0.3 per cent, a slower pace than the 0.6 per cent increase in the previous quarter.

Wednesday’s productivity numbers come on the heels of overall poor performance by the Canadian economy. Last week, Statistics Canada said Canada’s gross domestic product (GDP) contracted at an annual rate of 1.6 per cent in the second quarter, a sharper decline than was expected by economists.

The contraction was driven by weakness in trade-exposed sectors, with exports declining by 7.5 per cent. Business investment also fell, driven by weak investment in machinery and equipment. GDP-per-capita was also down in the second quarter.

Canada’s productivity crisis is a longstanding issue. Bank of Nova Scotia senior economist Derek Holt said in the past five years, productivity has only been positive in six of the last 21 quarters.

In a speech delivered last year in Halifax, Bank of Canada senior deputy governor Carolyn Rogers declared Canada’s poor productivity record “an emergency,” noting that in 1984 Canada produced 88 per cent of the value generated by the U.S. economy per hour but that the number had declined to 71 per cent by 2022.

Canada currently ranks as one of the lowest among its G7 peers when it comes to productivity.

Canada’s productivity crisis just got worse with biggest plunge in three years

Canada’s productivity crisis worsened in the second quarter, with labour productivity dropping by 1%, Statistics Canada said. Read on

financialpost.com