Business
Business investment key to addressing Canada’s productivity crisis
From the Fraser Institute
By Tegan Hill
The Bank of Canada’s senior deputy governor Carolyn Rogers recently raised the alarm on Canada’s productivity crisis, saying “it’s an emergency—it’s time to break the glass.” But to address Canada’s productivity problem, which is contributing to our stagnant living standards, we must first address Canada’s weak business investment.
For perspective, Canada’s economic growth in the fourth quarter of 2023, as measured by per-person GDP, a common indicator of living standards, was $58,111, which is slightly less than it was at the end of 2014 at $58,162 (after adjusting for inflation). That means that over roughly the last decade, Canadian living standards have not increased. Indeed, our economic problems span well beyond the pandemic. In the five years prior to 2019 (the last pre-COVID year), Canada’s per-person GDP (inflation-adjusted) was the 4th weakest out of 38 advanced countries.
Unfortunately, prospects for the future are dim. According to the OECD, Canada will record the lowest rate of per-person GDP growth among 32 advanced economies over roughly the next 40 years. Countries such as Estonia, South Korea and New Zealand are expected to pass Canada and achieve higher living standards by 2060.
Given that growth in productivity—essentially, the value of economic output per hour of work—is key to higher living standards, it’s no surprise that Rogers and other analysts are raising alarms. But what’s at the heart of our productivity crisis?
Put simply, weak business investment. While the federal and many provincial governments have prioritized immigration and bigger government in an effort to stimulate productivity growth and grow our economy, they’ve ignored business investment, which has significantly declined in recent years.
From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same time period, after adjusting for inflation, business investment per worker declined (on average) by 2.3 per cent annually. In contrast, business investment per worker grew (on average) by 2.8 per cent annually from 2000 to 2014.
While business investment has generally declined in Canada since 2014, in other countries, including the United States, it’s continued to grow. As a result, Canada’s GDP per hour worked—a key measure of productivity growth—is among the lowest in the OECD.
Think of it this way; when businesses invest in physical and intellectual capital they equip workers with the tools and technology (e.g. machinery, computer programs, artificial intelligence) to produce more and provide higher quality goods and services, which fuels innovation and higher productivity. Because Canada has lower levels of investment in tools and technology, our workers are less productive.
But here’s the good news. Governments across Canada can enact policies to help stimulate business investment, productivity gains, and ultimately, stronger economic growth. The key is to reduce onerous regulations, rein in high government spending, and create a pro-growth tax environment that makes Canada a more attractive place for business to locate and invest. These policies have a proven track record of improving business investment in Canada. For its part, the Trudeau government can prioritize pro-growth policies when it tables the federal budget next week.
Clearly, without a change in the investment climate and stronger productivity growth, the economic outlook looks grim. Fortunately, Canadian governments can respond to this emergency with pro-growth policy reform.
Author:
Business
Rand Paul Releases Report Detailing $1,000,000,000,000 In Gov’t Waste. Here Are The Worst Offenders
From the Daily Caller News Foundation
By Ireland Owens
Kentucky Sen. Rand Paul released a report on Monday outlining more than $1 trillion in government waste from the past year.
The 2024 “Festivus” report highlighted various instances of wasteful government spending from the federal government, including a pickleball complex in Las Vegas and a cabaret show on ice. This year marks Paul’s 10th annual report.
“This year, I am highlighting a whopping $1,008,313,329,626.12,” Paul wrote in the report. “That’s over $1 trillion in government waste, including things like ice-skating drag queens, a $12 Million Las Vegas pickleball complex, $4,840,082 on Ukrainian influencers, and more! No matter how much money the government has wasted, politicians keep demanding even more.”
The Department of the Interior (DOI) spent $12 million on a Las Vegas Pickleball Complex, according to the report. The DOI also spent $720,479 on wetland conservation projects for ducks in Mexico.
“I have a lot of problems with federal spending, and now it’s time to hear all about them,” Paul wrote in the report.
The National Endowment for the Arts (NEA) awarded the Bearded Ladies Cabaret a $10,000 grant to support a cabaret show on ice skates focused on climate change, according to the report. The NEA also spent $365,000 to promote circuses in city parks, the report states.
The State Department spent $500,000 to expand the U.S. Embassy in Ethiopia’s #USInvestsInEthiopians social media campaign to a larger national public relations campaign, according to the report. The State Department also sent $253,653 to Bosnia to fight “misinformation,” spent $2.1 million for Paraguayan Border Security, and spent $3 million for ‘Girl-Centered Climate Action’ in Brazil, according to the report.
The Department of Health and Human Services spent $419,470 to determine if lonely rats seek cocaine more than happy rats, the report states.
The National Science Foundation spent $288,563 to ensure bird watching groups have safe spaces, also known as “Affinity Groups,” according to the report.
President-elect Donald Trump announced on Nov. 12 that he had picked Vivek Ramaswamy and Elon Musk to co-chair a new Department of Government Efficiency (DOGE), aimed at cutting down on wasteful government spending.
“As always, taking the path to fiscal responsibility is often a lonely journey, but I’ve been fighting government waste like DOGE before DOGE was cool, Paul wrote in the report. “And I will continue my fight against government waste this holiday season.”
Many Americans have faced steep costs amid high inflation throughout President Joe Biden’s term, with inflation hitting a peak of 9.1% in June 2022. While inflation rates have eased some since June 2022, prices still remain high, with the consumer price index (CPI), a measure of the price of everyday goods, experiencing a year-over-year increase of 2.7% in November, according to a Dec. 11 report from the Bureau of Labor Statistics.
Some experts have attributed massive government spending under the Biden-Harris administration to fueling inflation rates. The national debt was at $36.16 trillion as of Tuesday, according to U.S. Treasury Fiscal Data.
A spokesperson for Rand Paul did not immediately respond to a request for comment from the Daily Caller News Foundation.
From LifeSiteNews
The Canadian Armed Forces has been pushing a radical LGBT agenda under Prime Minister Justin Trudeau, with the latest example being ‘Task Force Gender Advisors’ deployed in war-hit nations, such as Haiti and Ukraine.
Canada’s military has been actively pushing a woke pro-LGBT agenda on the world stage, with the latest example being its deployment of “task force gender advisors” internationally in war-hit nations, such as Haiti and Ukraine.
The “gender advisors” initiative is noted in the 2024 Departmental Report of the Canadian Armed Forces (CAF). This has resulted in it drawing a sharp rebuke from veterans who wonder why the military is spending money on pushing the LGBT agenda abroad.
The CAF report notes how in Poland, for instance, the “Task Force Gender Advisor was involved in all aspects of this training mission and supported the local Defence Attaché in connecting with local and Ukraine-based non-governmental organizations and interested parties.”
The report noted how the “gender advisor” as well as “gender focal points” were sent to military missions in Eastern Europe, including Ukraine, Poland, and Latvia throughout 2023.
In war-torn Haiti, “intersectional factors (were) being applied towards stabilization and humanitarian efforts,” via an “Operations HORIZON and PROJECTION” initiative.
This initiative is part of the third “National Action Plan on Women, Peace, and Security for 2023-2029.” This is a program that looks to advance pro-LGBT ideology, such as concepts of different “genders,” in all military operations.
Under Prime Minister Justin Trudeau, the CAF, as well as all government departments, have pushed an ever-increasing woke agenda, as well as a host of so-called diversity, equity, and inclusion (DEI) policies in place.
The military’s action plan notes how there are no less than three full-time “gender advisors” who are in the CAF at all levels.
“A Gender Advisor is a full-time position, usually a military position, and a Gender Focal Point is a part-time position; these exist to support Commanders in the application of GBA+ and gender perspectives in both the institutional and operational realms. Gender Focal Points are positioned throughout CAF. In-theatre, there is a minimum of one GFP on all named missions,” notes a Department of National Defence report.
The president of Veterans for Freedom, Andrew MacGillivray, blasted the woke DEI policies, saying the program has morphed into a “useless overbearing policy that has infiltrated every aspect of the Canadian Armed Forces.”
He noted that war-torn nations most likely don’t care “about gender nonsense being pushed by Canada when they are struggling to keep people alive.”
Since Trudeau became PM, the CAF has become increasingly woke and has been forcing LGBT ideology on many of its personnel. It has also seen recruitment plummet to all-time lows.
As reported by LifeSiteNews, earlier this year, Canada’s first “transgender” military chaplain was suspended for alleged sexual harassment, after he reportedly sought to grope a male soldier at the Royal Military College while drunk.
Canada’s military has spent millions of taxpayer dollars on pro-DEI polls, along with guest speakers, presentations, and workshops, as well as LGBT flags. The workshops covered topics including “the gendered nature of security,” while one talk discussed “integrating gender and diversity perspectives.”
In 2021, the defence department revealed that it has two separate committees and eight programs that worked to appoint homosexual advisors to “innovate” religious instruction and gender-neutral uniforms.
In June of 2023, the Canadian military was criticized for “raising the pride flag” in honor of the so-called “2SLGBTQI+ communities.”
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