Weak productivity, business investment contribute to sluggish economic performance
Damn, it’s almost as if our economy has a big fucking leak - it’s like the rich assholes getting a free ride are consuming the profits that should be reinvested into our social welfare and economic growth.
It’s actually mostly draining into the net value of people who own property. You could classify them as “the rich” but around 65% of residential properties in the country are owned by the family that lives in them, so the vast majority of this land value appreciation isn’t just going to the 1%, or the 10%, it’s going to the 50% which is heavily weighted towards older people.
Weak wage growth means people can’t spend as much anymore on anything but essentials.
This is economic 101 bit most political leaders don’t want to see it.
This is the best summary I could come up with:
To return to trend over the next decade, real gross domestic product per capita would need to grow at an average annual rate of 1.7 per cent – similar to the robust expansion in the United States in recent years.
“Per capita growth of this magnitude is ambitious and a marked departure from recent trends,” wrote Carter McCormack and Weimin Wang, the authors of the report.
In a speech last month, Bank of Canada senior deputy governor Carolyn Rogers said the country is facing an “emergency” of weak labour productivity and tepid levels of business investment.
At a time of challenging economic conditions, the population is growing at the fastest rates in decades – almost entirely through immigration – which is boosting the denominator in the per capita calculation.
(Economies can also boost per capita output via higher employment rates and the average employee working longer hours, although these have played a small role in Canada’s long-term gains.)
“The ability of Canadian companies to harness the benefits of new competitive technologies related to artificial intelligence, robotics and digitalization will be critical to the link between investment and productivity in the coming years and potentially important contributors to changes in living standards,” they wrote.
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