Canada’s Economy Is Even More Screwed Up Than You Think

Support us at hatchetmedia.substack.com

I think we all know that the Canadian economy isn’t doing great. In the years after the pandemic, inflation surged and everyday people had to deal with ever-rising prices on all kinds of staple goods.

The former governor of the Bank of Canada Stephen Poloz said recently that it’s likely that Canada’s already in a recession, and we just don’t know it yet.

And now, even the people in charge of the economy are in chaos. Chrystia Freeland, the finance minister resigned, claiming that she can’t tolerate the political gimmicks being forced on her by the Prime Minister’s Office.

And the threat of massive tariffs from the incoming Trump administration could pulverize Canadian industry in upcoming years.

But the problems with Canada’s economy go much deeper than even all that. For the last few decades, economists have pointed to Canada’s absolutely anemic rates of productivity, which measures how efficient an economy is.

The housing crisis continues to be one of the very worst in the world. And no political party seems to be offering up any real solutions to any of our problems.

And that’s why I wanted to talk to John Rapley.  He’s an economics columnist for the Globe and Mail and the author of a number of books, including Why Empires Fall: Rome, America and the Future of the West, and one of the sharpest thinkers on all things economic.

We caught up with him while he was in South Africa and on the day after Freeland’s dramatic resignation.

Featured in this episode: John Rapley

To learn more

“The ‘vibecession’ is real, and economists must do some soul-searching” by John Rapley in The Globe and Mail

“Bless this house: Why Canadians put so much faith in the housing market” by John Rapley in The Globe and Mail

Why Empires Fall: Rome, America, and the Future of the West by Peter Heather & John Rapley

The Hatchet is a podcast and newsletter dedicated to exposing power and money in Canada. Every week, we’re going to deliver important, original and fascinating journalism about how this country actually works, and we’re going to do it in a way that no one else can.

Music: I dunno by grapes (c) copyright 2008 Licensed under a Creative Commons Attribution (3.0) license. Ft: J Lang, Morusque

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit hatchetmedia.substack.com/subscribe