Hub Podcasts Carney's budget debut and Canada's investment crisis
Nov 3, 2025
Rudyard and Sean dive into the economic implications of Carney's budget debut. They discuss the need for Canada to boost its competitiveness in response to U.S. tariffs rather than retaliate. A significant focus is placed on the country's productivity crisis, which affects living standards and GDP. The hosts argue for tax reforms aimed at fostering entrepreneurship among small and medium-sized businesses, warning against the risks of government-picked industrial projects.
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Competitiveness Not Retaliation
- Sean Speer argues the right response to US tariffs is boosting Canada's competitiveness, not retaliatory tariffs or minor trade diversification.
- He warns tariffs mainly risk shifting capital and production out of Canada, undermining long-term industrial capacity.
Productivity Requires More Capital
- Sean Speer says productivity rises mainly from more capital investment driven by competition and market pressures.
- He recommends tax changes like lower capital gains or a capital gains rollover to spur business investment and AI adoption.
Use Tax Policy To Incentivize Investment
- Do use the tax system to boost capital investment by lowering capital gains taxes or expanding exemptions to encourage business reinvestment.
- Do signal pro-investment policy to drive AI and other technology adoption across firms.