The Big Story
Why has Canada's productivity taken a nosedive?
Nov 6, 2024
Trevor Tombe, a Professor of Economics at the University of Calgary, dives into Canada's alarming productivity decline. He discusses how Canada has slipped behind the U.S. and identifies key sectors, like oil and gas, contributing to the lag. Tombe examines the impact of trade uncertainties and environmental policies, shedding light on complex internal barriers. He emphasizes the significance of productivity for living standards and suggests strategies for improvement, urging a focused framework for economic policy reform.
26:33
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Quick takeaways
- Canada's productivity has sharply declined compared to the United States, now producing 50% less per person, impacting living standards.
- The interplay of external economic challenges and domestic policies contributes significantly to Canada's productivity crisis, highlighting the need for strategic reforms.
Deep dives
Understanding Productivity
Productivity measures the amount produced for each hour worked, acting as a crucial indicator of a nation's economic efficiency. For instance, it quantifies how many goods, such as haircuts or cars, are produced relative to the labor hours invested. This efficiency is vital for maintaining a standard of living and allows citizens to enjoy resources or potentially work less while preserving their quality of life. Therefore, productivity is not solely about raw output; it fundamentally reflects the effectiveness of labor in generating economic value.
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