How Canada's Economy Became The Most Pathetic In The World: The Collapse Of A Nation

Summary

The video script discusses the alarming outflow of investment from Canada to the US, highlighting a net loss of $460 billion by 2022, potentially escalating to half a trillion dollars. It attributes this to Canada's restrictive regulatory environment, high corporate taxes, and lack of reinvestment by corporations. The script also criticizes the country's immigration policies, slow trade, and declining productivity, suggesting these factors are contributing to a bleak economic future, especially for the middle class and young people.

Takeaways

• 📉 The video discusses the significant outflow of investment from Canada to the United States, highlighting a net outflow of $1 trillion by 2022.
• 🏦 The script points out that Canadian businesses and investors have been moving their capital to the U.S., potentially due to regulatory restrictions and high corporate taxes.
• 📊 The OECD's FDI regulatory restrictive index is mentioned to illustrate the difficulty of foreign investment in Canada, which is much higher compared to the global average.
• 💼 The high immigration rate in Canada is presented as a sign of a struggling economy, contrasting with the ease of moving to Canada versus the difficulty of investing in it.
• 🏭 The lack of capital investment in Canadian ports and infrastructure contributes to slow trade and a decline in productivity.
• 📈 Canada's economy is heavily reliant on real estate, with the sector becoming the largest part of the economy, which is a sign of economic fragility.
• 💔 The script emphasizes the negative impact on the middle class and young people, who face an increasingly unaffordable housing market and job instability.
• 📉 The video suggests that Canada's economic future is bleak, with a decline in productivity and a lack of business investment within the country.
• 🏠 The government's response to the housing crisis is criticized for being late and ineffective, with policies that may have indirectly increased housing costs.
• 🤔 The possibility of Canada recovering economically is presented as unlikely without significant policy changes, such as reducing immigration and easing regulatory burdens.
• 🌐 The script concludes by questioning whether Canada can reverse its economic decline, suggesting that it would require a modern economic miracle to do so.

Q & A

What significant change in investment trends between Canada and the USA occurred in 2015?

In 2015, there was a shift in investment trends where Canadian businesses, investors, entrepreneurs, and professionals started moving their money out of Canada to the United States, reversing the previous trend where Canada received more foreign investment from the USA.

What was the net amount of investment that had left Canada for the United States by 2022?

By 2022, a net amount of $1 trillion in book value had left Canada for the United States, with a net value of $460 billion.

How does the speaker describe the impact of this investment outflow on the Canadian economy?

The speaker describes the impact as dire, suggesting it represents a massive outflow of potential jobs, higher wages, innovation, and business opportunities, which are critical for the economy.

What is the OECD's FDI Regulatory Restrictive Index, and how does it relate to Canada?

The OECD's FDI Regulatory Restrictive Index measures the ease with which a foreign entity can invest in a country. Canada ranks poorly on this index, indicating that it is much more difficult to invest in Canada compared to the global average.

How does Canada's corporate tax rate compare to the rest of the world, and what implications does this have for investment?

Canada has one of the highest total corporate tax rates in the world, which may discourage businesses from investing in the country and instead moving their investments to more tax-friendly jurisdictions.

What does the speaker suggest about the current state of Canada's productivity compared to historical levels?

The speaker suggests that Canada's productivity has significantly declined, falling from the sixth most productive economy in the world in the 1970s to 18th, which is the steepest decline among all countries during that period.

How does the speaker characterize the current economic situation of Canada's middle class and young people?

The speaker characterizes the current economic situation for Canada's middle class and young people as bleak, with high levels of debt, an inability to afford housing, and a pessimistic outlook on their financial future.

What is the speaker's view on the role of immigration in Canada's economic challenges?

The speaker views the high levels of immigration as a contributing factor to the economic challenges, suggesting that it has led to an influx of workers suppressing wages and an imbalance in the job market without corresponding improvements in infrastructure and housing.

What is the current state of Canada's real estate sector in relation to the overall economy?

The real estate sector has become the number one sector of Canada's economy, and its stability is seen as crucial to the overall health of the economy, despite concerns about affordability and the sustainability of current housing prices.

What are some of the potential solutions the speaker suggests for Canada's economic challenges?

The speaker suggests that reducing immigration, reopening natural resources for investment, reducing regulatory and tax burdens, and potentially changing the government could be potential solutions to Canada's economic challenges.

What does the speaker imply about the likelihood of Canada addressing its economic issues in the near future?

The speaker implies that it is unlikely for Canada to address its economic issues in the near future, given the current government's track record and the lack of immediate plans to tackle key issues like housing affordability and immigration.