Contrary to some recent claims, Canada's economy is not collapsing. bloomberg column Regarding that point. excerpt:
A chorus of fatalists pointing out Depending on how you look at it, Canada's GDP per capita is decreasing.
While there is genuine cause for concern, the bad news has been greatly exaggerated. Canada has not changed its long-standing fundamental position. It's a little poorer than the United States, but it's progressing at a more or less typical pace.
First, a note on the numbers: Canada's GDP per capita is not back to 2014 levels. deflate income from producer priceFor real living standards, on the other hand, economists generally agree that some type of consumer price deflator is more appropriate.take advantage of that metric, Canada's GDP per capita has mostly increased since 2014, excluding the pandemic, and is currently slightly above pre-pandemic levels, despite a very recent slump. Yes, Canada's performance could have been better, but there's no reason to press the panic button.
It's also worth noting that Canada's economy has historically been doing well as measured by median income. trendhas been steadily increasing for almost 20 years, including since 2014.
Concerns include:
It's natural to wonder why Canada's economy appears to be lagging behind the United States in relative terms. As a general observation, this is true of most developed countries and probably says more about America's virtues than Canada's flaws.
But more specifically, the nature of the technological economy means that this widening gap may be inevitable, at least for a while. Contributors to Canada's technology scene are many, among others: artificial intelligence.But in some exception, these developments had the greatest impact in the United States. Canada can certainly be proud of the contributions of its talented Canadian-Israeli computer scientists. Ilya Satskevaco-founder of OpenAI, but of course that means he didn't work in Canada.
Think of this as the economic equivalent of America's exorbitant privileges in monetary policy. The more other economies become technology-centric, the more likely they are to support America's major technology clusters and continue to attract global talent. Therefore, no matter what Canada does, the United States is likely to expand its relative lead over Canada and many other economies. Perhaps some Canadians are uncomfortable with that widening gap, but as long as their country benefits from similar innovations, it's a good thing for most Canadians.
I'm looking forward to my next trip to Canada, but when will that be? I don't think I'll make it to the Candidates Tournament, but I'll pick Caruana to win.