The Remarkable Economy of Canada

Summary

The video script explores Canada's unique economic position as a resource-rich Commonwealth country with a complex relationship with skilled immigration. It highlights the economic benefits of welcoming foreign talent and international students, while acknowledging the challenges of housing affordability and resource extraction in harsh conditions. The script also discusses the impact of Canada's geography on trade and the economy, emphasizing its strategic advantage in global markets and the importance of responsible resource management for long-term prosperity.

Takeaways

• 🇨🇦 Canada is a highly advanced first-world country with abundant natural resources and a polite population, often overlooked in comparison to its southern neighbor.
• 🌐 As a Commonwealth country, Canada maintains a connection with its British heritage while being an independent state.
• 📊 Canada has one of the highest proportions of foreign-born populations, with immigration contributing positively to its economic growth.
• 💼 Skilled immigration is a contentious issue in Canada, despite the country's reputation for politeness, and has economic implications beyond social debates.
• 🤔 The script avoids delving into the social or political aspects of immigration, focusing instead on its economic impact.
• 🏫 International students contribute significantly to the Canadian economy, both through their tuition fees and the money they bring from their home countries.
• 🏠 The influx of wealthy migrants and international students has led to a surge in property prices, making home ownership difficult for native Canadians in cities like Vancouver.
• 💰 Canada benefits from its geographical position, with direct land access to the United States, facilitating lucrative trade and reduced defense spending.
• ❄️ The country's harsh climate and Arctic tundra make resource extraction more expensive, impacting the profitability of industries like mining.
• 🛣️ Geography both helps and hinders Canada's economy; while it provides access to oceans for trade, it also presents challenges for resource development.
• 🚫 Despite having the conditions for shale oil production, Canada has not fully capitalized on this due to higher costs associated with its environmental conditions.

Q & A

What is the significance of Canada being a Commonwealth country?

As a Commonwealth country, Canada is a free and independent state that still takes many of its cultural and political lessons from its historical ties to the United Kingdom, which can influence its governance and international relations.

How does skilled immigration impact Canada's economy?

Skilled immigration has a strong correlation with economic growth in Canada. Skilled migrants bring in capital, often moving into roles where they contribute significantly more to the economy than they receive in wages, thus boosting economic productivity.

What percentage of the Canadian population was foreign-born as of 2015 according to the United Nations Department of Economic and Social Affairs?

As of 2015, almost 22% of the Canadian population was represented by people not born in Canada, which includes both citizens and foreign citizens living in the country on various visas.

What is the economic benefit of international students in Canada?

International students contribute to the Canadian economy by paying for their education and living expenses, making education a significant export commodity and a source of direct financial injection into the system.

How does the influx of wealthy migrants affect the real estate market in cities like Vancouver?

The influx of wealthy migrants, particularly in cities like Vancouver, has led to significant appreciation in property prices, making home ownership increasingly unattainable for many Canadian citizens and potentially displacing long-time residents due to high land taxes based on current market values.

What is the role of geography in the Canadian mining industry?

Canada's geography, with a large portion of its landmass being sparsely populated Arctic tundra, makes resource extraction more expensive due to the extreme environmental conditions, which can lower profit margins for mines compared to those in more temperate climates.

Why hasn't shale oil production taken off in Canada despite having the right conditions?

Shale oil production in Canada hasn't taken off primarily because it is more costly than liquid oil extraction, and the additional expenses associated with operating in harsh environments make it more economically viable to invest in oilfields in other countries.

How does Canada's relationship with the United States benefit its economy?

Canada's proximity to the United States, the world's largest consumer market, facilitates lucrative trade relations and reduces the need for significant defense spending, as it shares a stable border with a powerful ally.

What is the economic implication of Canada's access to both the Atlantic and Pacific Oceans?

Having direct access to both oceans allows Canada to engage in trade with Europe and Asia, which is beneficial for its economy by diversifying its export markets and enhancing global trade opportunities.

How does the Canadian government utilize the revenue from its natural resources?

The Canadian government employs mining taxes at both the federal and provincial levels to return a portion of the revenue from natural resources back to its citizens, investing in the nation's future when it may not be able to rely on exporting these resources.

What challenges does the Canadian economy face regarding resource extraction due to its geography?

The challenges include the high costs of operating mines in extreme Arctic conditions and the lower profit margins due to environmental expenses, which can make certain types of resource extraction, like shale oil, less economically attractive compared to other regions.

Outlines

00:00

🌏 Canada's Unique Economy and Immigration Impact

This paragraph discusses Canada as an advanced economy with abundant natural resources and a polite population, often overshadowed by its southern neighbor. It highlights Canada's status as a Commonwealth country, drawing influences from across the Atlantic. The paragraph delves into the contentious issue of skilled immigration, its economic benefits, and the challenges it poses, such as the high percentage of foreign-born residents and its impact on the workforce and local economies. The economic advantages of immigration are underscored, including the influx of capital and the filling of labor shortages in undermanned professions. Additionally, the paragraph touches on the international student phenomenon, which is both an economic boon and a driver of cost of living increases, particularly in cities like Vancouver.

05:01

🏠 The Socio-Economic Effects of Immigration and Resource Management

The second paragraph examines the socio-economic implications of immigration, particularly the impact on housing affordability in Vancouver. It describes how an influx of wealthy migrants and international students has driven up property values, making home ownership unattainable for many native Canadians. The paragraph also addresses the tax burden on residents based on inflated property values, leading to potential displacement. Moving beyond immigration, the discussion shifts to Canada's management of natural resources, comparing its approach to other resource-rich economies. The country's mining industry is highlighted, with emphasis on the challenges posed by its geography, especially the Arctic conditions that increase extraction costs and lower profit margins. The potential of shale oil production is also explored, noting the high costs and environmental concerns associated with fracking.

10:02

📈 Canada's Economic Prospects and Global Standing

The final paragraph reflects on Canada's position as a developed market power with global appeal for trade, investment, and residency. It acknowledges the country's strengths, such as its stable democracy and strategic geographic location, which facilitates trade with the United States, Europe, and Asia. The paragraph also considers the debates and challenges within the country, suggesting that continued efforts towards stability and efficiency will likely ensure the ongoing prosperity of its citizens. The video concludes with an invitation for viewers to engage in discussion on a Discord server and an encouragement to participate in the comment section.

Keywords

💡Candor

Candor refers to the quality of being open, honest, and sincere in expression. In the context of the video, it is used to describe the straightforward approach taken in discussing the various aspects of Canada's economy and society. The script uses candor to introduce the topic of Canada's often overlooked but significant economic status.

💡Commonwealth country

A Commonwealth country is a member of the Commonwealth of Nations, an organization that includes mostly former territories of the British Empire. The video script mentions that Canada, being a Commonwealth country, has historical ties to the UK and shares certain cultural and political values, which influence its governance and policies.

💡Immigration

Immigration is the process of moving from one country to another with the intention of living there permanently. The script discusses the economic impact of skilled immigration in Canada, highlighting both the benefits, such as economic growth, and the challenges, including the potential for increased cost of living and housing affordability issues.

💡Foreign-born population

The foreign-born population refers to the number of people living in a country who were not born there. The video script notes that Canada has one of the highest percentages of foreign-born residents, which is significant for understanding the demographic makeup and economic contributions of the country.

💡Economic growth

Economic growth is the increase in the production of goods and services in an economy over a period of time. The script suggests that inviting skilled migrants into Canada has a strong correlation with economic growth, as these individuals often bring capital and contribute more to the economy than they receive in wages.

💡Student visas

A student visa is a permit that allows a person to study in a foreign country. The video script explains that Canada's student visa program is a valuable export commodity, as international students bring money into the country through tuition fees and living expenses, contributing to the economy.

💡Cost of living

The cost of living refers to the amount of money needed to sustain a certain level of living, including expenses such as housing, food, and taxes. The script discusses how the influx of wealthy migrants in Canada, particularly in cities like Vancouver, has led to significant increases in the cost of living, especially in the real estate market.

💡Resource-rich economies

Resource-rich economies are those with abundant natural resources, which can be a significant source of income and economic growth. The video script places Canada in the middle of the spectrum of resource management, noting that it has mining taxes that aim to return the wealth generated from natural resources back to its citizens.

💡Geography

Geography is the study of the Earth's landscapes, peoples, places, and environments. The script explores how Canada's geography, including its location, climate, and natural resources, impacts its economy, both positively through trade access and negatively through the challenges of resource extraction in harsh environments.

💡Shale oil

Shale oil is a type of unconventional oil that is extracted from shale rock formations using hydraulic fracturing, or 'fracking'. The video script discusses the potential of Canada's shale oil reserves and the challenges associated with its production, such as high costs and environmental concerns.

💡Prosperity

Prosperity refers to a state of economic success, growth, and well-being. The script concludes by suggesting that if Canada continues its efforts to maintain a stable, safe, and efficient country, the prosperity of its citizens is likely to continue, reflecting the overall economic health and quality of life in the nation.

Highlights

Canada is an extremely important economy with unique contributors in the Western Hemisphere.

As a Commonwealth country, Canada takes many lessons from its mother country across the Atlantic Ocean.

Canada has a love-hate relationship with skilled immigration, a highly divisive issue.

Canada has one of the highest foreign-born populations in the world, with almost 22% in 2015.

Skilled migrants contribute significantly more to the economy than they take in wages.

Canada's student visa program is an incredibly valuable export commodity, similar to tourism.

International students contribute a lot of money to Canadian schools and universities.

The influx of wealthy foreign residents has caused huge appreciation in property prices in Vancouver.

High property prices in Vancouver have made home ownership unattainable for many born and raised Canadians.

Canada's geography has both positively and negatively impacted its economy.

Canada benefits from its strong, stable relationship with the United States.

Canada has direct access to both the Atlantic and Pacific Oceans, beneficial for trade with Europe and Asia.

A majority of Canada's landmass is sparsely populated Arctic tundra, making resource extraction more expensive.

Shale oil production in Canada hasn't taken off due to the high cost and better investments in other countries.

Canada is a stable, safe democracy that attracts investment and skilled migrants, contributing to its prosperity.

Transcripts

this is candor a highly advanced first

world country blessed with an abundance

of natural resources and polite people

this nation is often a side thought when

compared to its far more influential and

much louder brother to the south but

Canada is an extremely important economy

in its own right with a few key

contributors that make it truly unique

in the Western Hemisphere for starters

it is a Commonwealth country meaning

that while it is a free and independent

state it still takes a lot of its

lessons from its mother back across the

Atlantic Ocean

the nation is also blessed and cursed by

its own geography and another issue

worth exploring is the love-hate

relationship that Canada has with

skilled immigration immigration is an

incredibly divisive issue amongst pretty

much everyone the same has been true in

Canada for a country that is literally

known for its politeness this is still

an issue that many Canadians are

speaking up about now

this is an issue I have avoided like the

plague on this channel up until now

because I know that it can bring out

some very not nice behavior in the

youtube comment sections but here we go

I'm gonna be brave for it while of

course as always we will not be getting

into the social or political issues

involving immigration we are just going

to be looking at the economics of how it

impacts the nation and its citizens both

positively and negatively Canada has one

of the highest foreign-born populations

in the world as of 2015 the United

Nations Department of Economic and

Social Affairs estimated that almost 22%

of the Canadian population was

represented by people not born in Canada

it should be noted that this 22% was not

entirely made up of non Canadian born

citizens but also a mix of foreign

citizens living in the country

permanently on a range of visas that the

country offers from student visas to

spousal visas and even full working

visas which gives the people full rights

of a Canadian citizen - the ability to

vote and a few other fringe benefits

Canada has also been very prosperous in

many senses because of this inviting

skilled migrants into an economy has a

very strong correlation with economic

growth this is statistically almost

certainty in data confidence levels and

has been shown to be the case in almost

every other country where it has been

studied by bringing in students and

skilled workers you are also bringing in

their money if an engineer from China

moves to Canada they are not going to

come over empty-handed they are going to

bring cash and will often move into a

role where they are contributing

significantly more to the economy than

what they are taking in a wage I also

want to get over the argument that these

individuals will be taking jobs that

could have otherwise gone to born and

raised Canadian citizens because for the

most part skilled workers visas are

given to people in professions that are

severely undermanned in the workforce

the equation gets even more favorable

when you consider the Canadian student

visa program as of 2017 the Canadian

Bureau for International Education

estimates that there are around two

hundred and forty five thousand

international students in secondary and

tertiary education in Canada that number

is on the rise and as of 2019 it is

reasonable to believe it would be much

higher

these students are technically an

incredibly valuable export commodity for

Canada it sounds silly to say but in the

same way that tourists coming to a

country is considered an export so to

our students the average international

student in Canada is getting a

significant portion of their income from

their home countries typically from

wealthy parents

sure Canadian student visas do allow

students limited access to employment

but it is incredibly rare that a student

on a student visa in Canada will be

self-sufficient on what they can earn

from their employment in the country

itself so what this normally means is

that the average student is paying a lot

of money into Canadian schools and

universities they are also paying a lot

of money to fund their lifestyle while

they are in the country and in return

Canada is educating them and sending the

smarter students back home Canada gets

money and the country that the student

is from gets a smarter student and

looking at it from the most basic level

you can see how education is a major

export just the same as anything that

can be loaded into shipping containers

students on student visas are the

closest thing an economy can get to a

shot of pure cash injected straight into

the system school migration is not

without its flaws though the most

apparent of which is the severe cost of

living increases these wealthy migrants

can

with them most notably in the real

estate market Vancouver Canada is a

popular city for wealthy migrants into

Canada its natural beauty legendary

safety and proximity to the American

West Coast makes it a popular

destination for wealthy migrants and

it's world-famous universities make it

an equally popular destination for

international students the influx of

these wealthy foreign residents has

caused huge appreciation in the property

prices in the city we have explored this

issue briefly before when we were

looking at the economy of Australia who

has had similar phenomenon impact its

major cities but in Vancouver Canada the

effects are much more apparent for many

born and raised Canadians this has made

home ownership unattainable because

average properties in the suburbs of

Vancouver are easily selling for over

ten times the national average wage what

is potentially worse is that land taxes

levied on the residents of Vancouver are

based on the values of the properties

that they occupy meaning that retired

residents are facing the possibility

have been pushed out of a fully paid off

home simply because they are having to

pay taxes based on a market price 20 or

30 times higher than the property's

original purchase price this does very

quickly turn into a social argument of

whether people have the right to own a

very valuable home simply because they

are the citizens of that country but

again we were avoiding this if we can

what can be noted though is that

economies with high instances of home

ownership tend to be more prosperous

long term and this trend may start

starving Canada of that typical economic

milestone

we have explored resource-rich economies

on the channel before most notably

Norway Australia and the Democratic

Republic of the Congo which are all

wildly different economies at their core

basically Norway was super responsible

with its natural resource well

effectively nationalizing majority of

the revenue and putting it towards an

investment fund Australia did benefit

from its resources through jobs and

industries in the nation but it was

actually pretty limited and a lot of

critics note that much of the wealth

here was pilfered by mining companies

and the average Australian didn't see

much tangible benefit from the resource

boom on the bottom of this scale are

countries like the Democratic Republic

of the Congo which as we have discussed

is an incredibly resource rich country

with incredibly poor citizens because of

severe political and structural issues

facing the country itself Canada lies

somewhere in the middle of this resource

wealth responsibility spectrum it does

have mining taxes aimed at returning the

natural wealth of the nation back to its

citizens this comes in the form of a

federal mining tax as well as a mine tax

for all of the provinces and territories

of the country apart from Prince Edward

Island because it doesn't have any mines

there so you know this is actually

pretty responsible once materials are

dug out of the ground and exported they

are not coming back again so it is

crucial that some of that revenue from

these resources goes into the future of

the nation for a time when it cannot

rely on exporting these resources I

don't want to get too bogged down in -

industry for the most part we have

already explored what resources can mean

for an economy if handled correctly or

if handled poorly what I do want to

explore though is how the Canadian

mining industry and its economy as a

whole is impacted by its geography

so you came for economics and you are

going to get a geography lesson I'm

sorry but in Canada's case this is

actually something truly important

Canada is blessed in many ways with its

position in the world it has a very

strong stable military political and

industrial a lighter that South with the

United States the United States is home

through the largest and most valuable

consumer market in the world and Canada

is one of two countries with a direct

land connection to this nation the other

been Mexico which is you know on

slightly less awesome terms this of

course means that a vast majority of

foreign trade is conducted with the

United States which is a very lucrative

arrangement to have beyond this it has

also meant that the Canadian government

has not had to contribute as much money

towards defense spending because nobody

in their right mind is going to invade

North America in the 21st century

I would hope this can be seen directly

with comparable Commonwealth nations

like Australia with a slightly smaller

landmass and a slightly smaller

population contributing 50% more of

their GDP towards their annual military

spend this location also means that

Canada has direct access to both the

Atlantic and Pacific Oceans to directly

trade with Europe and Asia which again

is hugely beneficial to an economy like

Canada it's not all roses though

Canada's geography has in many ways

impacted its economy negatively a

majority of Canada's landmass is

sparsely populated Arctic tundra this is

also coincidentally where a lot of its

resources are this makes resource

extraction far more expensive than it

would be in a regular economy if you

have ever watched Ice Road Truckers you

will know that the conditions that these

mines operate in is extreme and it costs

a lot of money to run these facilities

when compared to mines in Australia or

the United States or stable

middle-eastern countries the average

Canadian mine has a lower profit margin

because of these environmental expenses

perhaps the most topical example of this

holding back the Canadian industry is

its shale oil reserves shale oil

production is done through a very

intense industrial process that makes it

more costly than simply pumping liquid

crude oil out of the ground but it is

still an industry that has seen much

success

in many countries around the world

including the United States Canada has

all of the right conditions to

capitalize on this type of oil

productions for starters it has shale

oil great it would also have people

willing to invest the hundreds of

millions of dollars it takes to set up

these facilities because Canada is a

safe stable democracy that protects the

interests of free enterprise it also has

the abundance of water needed for these

operations and it also has locations

desolate enough to conduct these

operations without impacting nearby

populations because fracking is pretty

terrible for the in local environment it

has to be said the only real reason

shale oil production hasn't really taken

off yet is because there are just better

investments to be made in the mining

industry shale oil extraction is already

more costly than liquid oil extraction

and then when you couple that with the

additional expense from operations in

harsh environments like Canada it just

makes more economic sense to invest in

more lucrative oilfield in other

countries

Canada is a huge developed market power

that attracts a lot of confidence from

people all over the world looking for a

country to trade with or invest in or

even to call home it is not a country

without fault no country is it's not

even a country that is free from debate

over very important issues but if Canada

can continue the efforts it is made to

running a stable safe and efficient

country it is likely that the prosperity

of its citizens will continue for

decades into the future

thanks guys I hope you enjoyed the

latest video if you did please consider

liking and subscribing otherwise as

always I will be hanging out on a new

discord server which now has over 1,500

members and it is full of really great

discussions amongst people of all

economic persuasions I will be chatting

live on the server for an hour after

this video goes live but otherwise I do

my very best to reply to all serious

comments in the comment section below

thanks guys bye