Economy
What is ‘productivity’ and how can we improve it

From the Fraser Institute
Earlier this year, a senior Bank of Canada official caused a stir by describing Canada’s pattern of declining productivity as an “emergency,” confirming that the issue of productivity is now in the spotlight. That’s encouraging. Boosting productivity is the only way to improve living standards, particularly in the long term. Today, Canada ranks 18th globally on the most common measure of productivity, with our position dropping steadily over the last several years.
Productivity is the amount of gross domestic product (GDP) or “output” the economy produces using a given quantity and mix of “inputs.” Labour is a key input in the production process, and most discussions of productivity focus on labour productivity. Productivity can be estimated for the entire economy or for individual industries.
In 2023, labour productivity in Canada was $63.60 per hour (in 2017 dollars). Industries with above average productivity include mining, oil and gas, pipelines, utilities, most parts of manufacturing, and telecommunications. Those with comparatively low productivity levels include accommodation and food services, construction, retail trade, personal and household services, and much of the government sector. Due to the lack of market-determined prices, it’s difficult to gauge productivity in the government and non-profit sectors. Instead, analysts often estimate productivity in these parts of the economy by valuing the inputs they use, of which labour is the most important one.
Within the private sector, there’s a positive linkage between productivity and employee wages and benefits. The most productive industries (on average) pay their workers more. As noted in a February 2024 RBC Economics report, productivity growth is “essentially the only way that business profits and worker wages can sustainably rise at the same time.”
Since the early 2000s, Canada has been losing ground vis-à-vis the United States and other advanced economies on productivity. By 2022, our labour productivity stood at just 70 per cent of the U.S. benchmark. What does this mean for Canadians?
Chronically lagging productivity acts as a drag on the growth of inflation-adjusted wages and incomes. According to a recent study, after adjusting for differences in the purchasing power of a dollar of income in the two countries, GDP per person (an indicator of incomes and living standards) in Canada was only 72 per cent of the U.S. level in 2022, down from 80 per cent a decade earlier. Our performance has continued to deteriorate since 2022. Mainly because of the widening cross-border productivity gap, GDP per person in the U.S. is now $22,000 higher than in Canada.
Addressing Canada’s “productivity crisis” should be a top priority for policymakers and business leaders. While there’s no short-term fix, the following steps can help to put the country on a better productivity growth path.
- Increase business investment in productive assets and activities. Canada scores poorly compared to peer economies in investment in machinery, equipment, advanced technology products and intellectual property. We also must invest more in trade-enabling infrastructure such as ports, highways and other transportation assets that link Canada with global markets and facilitate the movement of goods and services within the country.
- Overhaul federal and provincial tax policies to strengthen incentives for capital formation, innovation, entrepreneurship and business growth.
- Streamline and reduce the cost and complexity of government regulation affecting all sectors of the economy.
- Foster greater competition in local markets and scale back government monopolies and government-sanctioned oligopolies.
- Eliminate interprovincial barriers to trade, investment and labour mobility to bolster Canada’s common market.
Economy
Governments across Canada should prioritize energy infrastructure—including pipelines

From the Fraser Institute
By Tegan Hill and Elmira Aliakbari
In a recent meeting with Prime Minister Mark Carney, the provincial premiers discussed major infrastructure and energy projects to be fast-tracked through a new federal approval process. While the general sentiment was that the meeting was productive and collaborative, the British Columbia government seemingly shot down Alberta’s proposed pipeline to B.C.’s northern coast. This political resistance to new pipeline infrastructure overlooks the positive potential impact such projects could have for Canada and beyond.
Prime Minister Carney plans to table legislation that would create a new major projects office tasked with reducing approval times from five to two years, among other measures. Major projects must meet numerous criteria before deemed in the “national interest” and expedited. The premiers have compiled a short-list of projects for consideration though the full list has not been publicly released.
Alberta Premier Danielle Smith’s proposed pipeline would transfer bitumen to the Port of Prince Rupert in B.C., which would open up access to Asian markets. B.C. Deputy Premier Niki Sharma, who attended the recent meeting in place of B.C. Premier David Eby, said the proposal has “no proponent” at this stage and that her government plans to focus on “shovel-ready projects.”
And it isn’t just the Eby government resisting the project—Steven Guilbeault, a member of Carney’s cabinet, recently dismissed the need for additional pipeline infrastructure, including to B.C.’s coast, based on incorrect information about the Trans Mountain pipeline’s capacity and future oil demand.
Again, this political resistance ignores key facts about Canada’s energy sector, including our current overreliance on a single customer. Currently, 97 per cent of our oil exports go to the United States. This heavy reliance on the U.S. market has made Canada vulnerable to U.S. policy changes, as highlighted by the recent threat of tariffs on Canadian energy. Expanding pipeline infrastructure—both westward, as proposed by Premier Smith, and eastward—would help us diversify our export market and allow Canada to reach customers in Asia and Europe.
And pipeline expansion is not just about exports; it’s also about enhancing energy security at home. Some parts of our country, namely Ontario and Quebec, remain heavily dependent on U.S. pipelines to meet their energy needs. Specifically, due to the lack of an west-east pipeline dedicated to oil, for more than 70 years Canadian oil extracted in Alberta has passed through the U.S. via Enbridge’s network before returning to Ontario.
Finally, this discussion shouldn’t be limited to oil. There is and will continue to be strong demand for liquefied natural gas (LNG) in many parts of the world, including in Asia, for many years to come, which presents Canada with a significant opportunity to become a major LNG exporter and provide cleaner-burning fuel to countries such as China and India. However, building the necessary infrastructure (pipelines and LNG terminals) is critical if we’re serious about seizing this opportunity.
Governments across Canada should support critical energy infrastructure, including pipelines. This means putting politics aside and recognizing the importance of infrastructure in expanding export opportunities, ensuring energy security, reducing global emissions and creating prosperity across the country.
Banks
Liberal border bill could usher in cashless economy by outlawing cash payments

From LifeSiteNews
Bill C-2 has raised concerns from legal organizations that warn it could lead to a cashless economy in Canada by banning cash payments over $10,000.
The Liberals’ proposed border legislation may quietly usher in a cashless economy by banning cash payments.
On June 3, the Liberal Party introduced Bill C-2 to strengthen border security and outlaw cash payments over $10,000. Legal organizations have since warned that this is the first step to a cashless economy and digital ID system in Canada.
“Part 11 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to prohibit certain entities from accepting cash deposits from third parties and certain persons or entities from accepting cash payments, donations or deposits of $10,000 or more,” the legislation proposes.
While the bill purports to strengthen border security and restore Canada-U.S. relations, many have warned that government regulation of cash payments is a slippery slope.
In a June 4 X post, the Justice Centre for Constitutional Freedoms (JCCF) warned that “If Bill C-2 passes, it will become a Criminal Code offence for businesses, professionals, and charities to accept cash donations, deposits, or payments of $10,000 or more. Even if the $10,000 payment or donation is broken down into several smaller cash transactions, it will still be a crime for a business or charity to receive it.”
The JCCF pointed out that while cash payments of $10,000 are not common for Canadians, the government can easily reduce “the legal amount to $5,000, then $1,000, then $100, and eventually nothing.”
“Restricting the use of cash is a dangerous step towards tyranny and totalitarianism,” the organization warned. “Cash gives citizens privacy, autonomy, and freedom from surveillance by government and by banks, credit card companies, and other corporations.”
“If we cherish our privacy, we need to defend our freedom to choose cash, in the amount of our choosing,” it continued. “This includes, for example, our right to pay $10,000 cash for a car, or to donate $10,000 (or more) to a charity.”
“Law enforcement already has the tools to fight crime,” JCCF declared. “Perhaps they need a bigger budget to hire more people, or perhaps they need to use existing tools more effectively. In a free society, violating our right to use cash is not the answer.”
A move to restrict Canadians’ use of cash is especially concerning as citizens already saw what a Liberal government will do to those who oppose its narrative during the 2022 Freedom Convoy.
In winter 2022, the Liberal government, under former Prime Minister Justin Trudeau, froze the bank accounts of those who donated to the Freedom Convoy, which featured thousands of Canadians camping in front of Parliament to protest COVID mandates.
Similarly, Liberal Prime Minister Mark Carney’s move to restrict Canadians is hardly surprising considering his close ties to the World Economic Forum and push for digital currency.
In a 2021 article, the National Post noted that “since the advent of the COVID pandemic, Carney has been front and centre in the promotion of a political agenda known as the ‘Great Reset,’ or the ‘Green New Deal,’ or ‘Building Back Better.’
“Carney’s Brave New World will be one of severely constrained choice, less flying, less meat, more inconvenience and more poverty,” the outlet continued.
In light of Carney’s new leadership over Canadians, many are sounding alarm over his distinctly anti-freedom ideas.
Exposing Mark Carney:
“Should sex be up for sale” 😮
“Should there be a market for the right to have children?” 🤯 pic.twitter.com/Q4hftgGIMc
— Mario Zelaya (@mario4thenorth) March 21, 2025
Carney, whose ties to globalist groups have had Conservative Party leader Pierre Poilievre call him the World Economic Forum’s “golden boy”. He has also previously endorsed the carbon tax and even criticized Trudeau when the tax was exempted from home heating oil in an effort to reduce costs for some Canadians.
Carney, who as reported by LifeSiteNews, has admitted he is an “elitist” and a “globalist.” Just recently, he criticized U.S. President Donald Trump for targeting woke ideology and has vowed to promote “inclusiveness” in Canada.
Carney also said that he is willing to use all government powers, including “emergency powers,” to enforce his energy plan.
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