Canada’s Wake-Up Call: Boosting Our Economic Future

This means the average Canadian isn’t seeing their prosperity improve as much as they could, or as much as citizens in comparable nations, especially given the extreme inflation we have seen throughout all of this time. The pie is shrinking. And it’s shrinking fast.

While countries like the United States have experienced significantly strong growth, we haven’t moved anywhere, let alone to have been lucky enough to lag a little. This isn’t just a dry statistic; it has real-world consequences, impacting wages, job opportunities, and our ability to invest and build the present and the future.

GDP per capita, simply put, represents the average economic output per person in a country. It’s a broad indicator of overall prosperity and how well-off citizens are, on average. The lack of growth we’ve experienced raises serious concerns. It can lead to stagnant incomes, fewer job prospects, and potentially, less investment in vital public services over time. It also creates a sense that Canada is falling behind other developed nations and not going anywhere. Dead.

The crucial question is: Why is this happening, and what can we do to fix it? What is so special about 2015 to 2025 that it has changed the function of Canada from first world growth to third world chaos and real GDP dormancy.

Some observers point to SMALLER highly successful countries like Singapore, Norway, or Switzerland, and ask if Canada’s economic structure and immigration policy, related to Liberal Party’s Century Initiative, is fundamentally hindering our potential.

It’s an undeniable observation that many of the world’s wealthiest nations, on a per-person basis, are relatively small.

These countries often have distinct economic policies, including smaller, less bureaucratic governments, lower taxes (in many instances), and a focus on specific, high-value industries.

It’s also argued that smaller governments can be more agile and responsive to changing economic landscapes. It was noticed during PM Trudeau’s tenure that as the size of the population increased, the size of the government increased faster; therefore reducing governance efficiency levels per person.

However, it’s absolutely vital to state clearly: this does not suggest that Canada should consider fragmentation or that provincial separation is a solution. That’s a complex and potentially damaging path. But the success of these smaller economies does force us to examine how we can optimize our own system for better performance.

The core lesson isn’t about national size; it’s about efficiency, productivity, and intelligent policy choices. Regardless of our size, we must prioritize the factors that genuinely drive economic growth and improve the lives of all Canadians.

Instead of pursuing unrealistic and potentially harmful alternatives, here’s where our focus should be:

Regulation plays a vital role in protecting the environment, ensuring worker safety, and safeguarding consumer rights. However, regulations must be efficient, effective, and not unduly burdensome on businesses. It’s about striking the right balance, not eliminating all rules.

This involves using “efficiency benchmark indexes” for technology products and systems, in a global competition of efficiency rankings, instead of “emissions target” as part of civilization development policy (to avoid compromising growth, while accelerating clean energy driven growth to maximum potential):

Canada should identify its key economic strengths and develop policies to support those sectors. This will help create high-paying jobs and ensure long-term economic prosperity.

Canada’s slow GDP per-capita growth is a serious issue demanding immediate attention. While observing the success of other nations can offer insights, radical solutions like national fragmentation are not the answer.

The path to a more prosperous future lies in focusing on practical, evidence-based solutions: boosting productivity, fostering innovation, and implementing smart policies that benefit all Canadians.

It’s time for a national conversation about these crucial issues and a commitment from our leaders to prioritize the steps needed to build a stronger, more vibrant economy for all.

The traditional economic model, where population growth was directly correlated with economic prosperity, is becoming increasingly outdated in the 21st century. Several fundamental forces are reshaping the economic landscape.

Historically, economic growth was heavily dependent on human labour, particularly in sectors like agriculture and manufacturing. More people meant more hands to work the fields, operate machinery, and build infrastructure.

Population size was a direct driver of productive capacity. Today, however, automation, robotics, and artificial intelligence are revolutionizing this equation.

A single automated factory or farm, or even mass agriculture using a few humans, can now achieve what hundreds, or even thousands, of workers did in the past. The marginal economic benefit of additional low-skilled, or even moderately-skilled, workers is rapidly diminishing.

We are transitioning from an era that demanded “people factories” (large populations) to one that favours “robot factories”(highly automated, capital-intensive production).

The quality of the workforce – its expertise in robotics, AI, engineering, and related fields– and the presence of advanced capital in the form of robots and automated systems are now far more critical than sheer population numbers.

The Liberal Party did not do what Canada needs, and real GDP went dormant for a lost decade. The Liberal Party immigrated people according to a 1st century to 20th century economic model, instead of industrial robots like South Korea, China and Japan and others did, and automated systems (industrial robots), even though Canadians are in 21st century and waiting for decades to build utopian future. No one helps them.

A crucial distinction must be made between high-skilled and low-skilled labour; modern automation and technological advancement require highly specialized expertise.

Furthermore, Western economies have become deeply reliant on debt-fuelled growth for decades. This debt is often predicated on the assumption of continued population growth to generate future tax revenue to service it.

When population growth slows (or declines), and productivity gains are insufficient to offset the debt burden, governments frequently resort to printing money (quantitative easing) as a way to avoid default.

This, in turn, fuels inflation, eroding the purchasing power of citizens and disproportionately impacting those on fixed incomes or with lower wages.

High levels of debt also create an “interest rate trap.” Central banks face limitations in their ability to raise interest rates to combat inflation, as doing so would increase the cost of servicing the debt and potentially trigger a recession.

This creates a challenging situation where some level of inflation may be tolerated, even if it’s economically detrimental.

Smaller nations, with lower debt-to-GDP ratios and less reliance on population growth to fuel their economies, are less susceptible to this inflationary spiral. They possess greater flexibility to manage their economies and maintain stable currencies within the 21t century economic model.

Another critical factor is the high cost of supporting a large, non-working population, within the high inflation debt driven paradigm of the 21st century.

Many Western nations are grappling with demographic shifts: aging populations and declining birth rates.

This results in a substantial and growing segment of the population that is not actively participating in the workforce – retirees, students, and individuals reliant on social assistance.

While generous social safety nets are socially desirable, they place a considerable financial burden on the working population, especially in countries with high rates of non-participation in the labour force.

High immigration rates are often touted as a “quick fix” to expand the working-age population and bolster the social safety net. However, if these immigrants are not highly skilled and quickly integrated into high-productivity sectors, they can exacerbate the economic burden rather than alleviate it.

Moreover, the immigration of individuals from low-consumption economies (low carbon/global south/eastern nations/farmers) to high-consumption (high carbon) economies like Canada’s significantly increases their carbon footprint, contributing to climate change.

Title: “The Environmental Impact of Canadian Immigration: A Hidden Contributor to Climate Change” https://x.com/SkillsGapTrain/status/1833137806836666834

This represents a substantial, and frequently overlooked, environmental cost of high immigration. The Liberal Party did not inform the public that immigration from Global South and Global East to Canada is a major contributor to climate change.

The geopolitical landscape of economic power is also shifting. In the 21st century, dominance is increasingly determined by intellectual property, technological innovation, and control over vital supply chains (such as semiconductors and rare earth minerals).

The emphasis has moved from labour-intensive industries to knowledge-based ones.

Smaller nations can effectively concentrate their resources on developing expertise in specific, high-value niches. For instance, Singapore has focused on finance and technology, while Switzerland has excelled in precision engineering and pharmaceuticals. Smaller, more agile economies often possess the advantage of being able to adapt more rapidly to technological disruptions and capitalize on emerging opportunities.

It is now in the best interest of societies to prioritize productivity per capita, leveraging the power of automation and robotics.

The rising cost of human labour, relative to automated solutions, will naturally incentivize nations to embrace automation. Nations with smaller populations will exhibit greater flexibility and adaptability in navigating inflationary pressures and elevated energy costs.

Those with lower debt burdens will be better positioned to withstand financial crises. And nations with lower immigration rates, particularly those involving a shift from low-consumption to high-consumption lifestyles, will experience reduced pollution levels and a smaller contribution to global warming.

Finally, on a broader societal level, there are potential risks associated with excessive urbanization, including decreased fertility rates, increased dependence on technology…

Title: “Safeguarding Existence: The Farmer’s Role in an Era of Smart Cities and AI Dominance” https://skillsgaptrainer.com/safeguarding-existence-the-farmers-role/

…a disconnection from the natural world (jeopardizing biological units in the AI age, an AI Safety issue if AGI governance is allowed to urbanize all humans)…

…and the stimulation and emergence of occasional mass formations as seen during the “COVID time period”...

Maintaining a more balanced population distribution, with a significant portion connected to agriculture and rural life, might offer greater resilience against the potential drawbacks of a purely urban, technology-driven society. This is a broader consideration related to long-term sustainability.

Instead of pursuing unrealistic and potentially detrimental alternatives, Canada’s focus should be on the following:

Canada needs to make strategic investments in education and skills training, ensuring that Canadians have access to the education and training required for the jobs of today and tomorrow. This includes a particular emphasis on skills relevant to automation, robotics, AI, and advanced manufacturing. We must significantly increase investment in research and development (R&D), particularly in applied projects that yield tangible, energy-based outputs and products. This research must be directly linked to real-world product development and commercialization. Fostering a vibrant ecosystem that supports startups, entrepreneurs, and innovative businesses is essential. This requires access to capital, mentorship, apprenticeship and sponsorship opportunities (especially in skilled trades), job shadowing, and a regulatory environment that encourages risk-taking.

Modern, efficient infrastructure – encompassing transportation, digital networks, and energy systems – is crucial for economic competitiveness. We need to invest in upgrading and expanding our electrical energy infrastructure, aiming for growth rates comparable to those seen in leading Asian economies, to support the demands of advanced industries.

It is also vital to make it easier for businesses to operate and trade within Canada. Reducing internal trade barriers between provinces is essential for creating a truly national market and unlocking economic potential. While regulation plays a critical role in protecting the environment, ensuring worker safety, and safeguarding consumer rights, it must be efficient, effective, and not unduly burdensome on businesses. The goal is to strike the right balance, not to eliminate all regulation. The government must also manage its finances responsibly, keeping debt levels under control to avoid burdening future generations and maintain investor confidence. Our tax system should be designed to incentivize investment, productivity, and economic growth, while simultaneously ensuring fairness and equity. Different regions of Canada face unique economic challenges, and we need policies that recognize and address these regional disparities, ensuring that all parts of the country can prosper. Canada should identify its key economic strengths and develop policies to support those sectors, creating high-paying jobs and ensuring long-term economic prosperity.

Crucially, given the changing economic landscape driven by automation and the increasing environmental and economic costs associated with high-consumption lifestyles, Canada must critically re-evaluate its approach to population growth. A focus on sustainable population levels, prioritizing the well-being and productivity of the existing population, may be more beneficial in the long run than rapid, immigration-driven growth. This necessitates a substantial investment in the skills and opportunities available to Canadians.

Canada’s sluggish GDP per capita growth is a very serious issue that demands immediate attention. While observing the success of other nations can provide valuable insights, radical solutions like national fragmentation are not the answer. The traditional economic model, which equated population growth with economic prosperity, is increasingly obsolete. Automation, unsustainable debt, demographic shifts, and the rising importance of intellectual property are fundamentally altering the rules of the game.

This is not a cause for pessimism, but rather an opportunity for Canada to fundamentally rethink its economic policy. We must prioritize productivity, innovation, sustainability, and a strategic approach to population growth, moving beyond outdated assumptions and embracing the realities of the 21st-century economy. It’s time for a national conversation about these crucial issues and a commitment from our leaders to prioritize the steps necessary to build a stronger, more vibrant, and sustainable economy for all Canadians.