A New Social Contract
The managing director of global consulting giant McKinsey & Co. Dominic recently said about 40 percent of existing Canadian jobs will disappear over the next decade or so due to automation.
“That is going to require governments to figure out what to do with older workers who are expected to lose their jobs to technology”, said Barton
The head of the government’s economic growth advisory council says governments need to craft “new social contracts” with Canadians to avoid deepening income inequality over time, as capital and large corporations become larger wealth makers.
Likely pointing to the idea that many Canadians may become jobless, and in turn, the government will become their supporting agent as they become reintegrated in a tech-based economy.
He said Canada should focus its energy and finances on a few key areas to offset the costs that could be associated with these new social contracts. Likely pointing to the fact that rapid advancements in ai will continue to shift trade benefits into nations with large amounts of resources and capital to finance new innovation.
Canada’s Virgining Tech Industry
Canada has been a surprise contender in the tech field as companies take advantage of Canada’s lower costs and great financial and educational institutions combined with America’s new found political instability to rapidly recruit new talent and expand.
So far, hundreds of companies have expressed interest in True North’s pitch of Canada as a stable alternative to the turbulence of the Trump administration. – The Guardian
This has made Canada a powerful area for investment and a great potential engine for our future economic growth as automation begins to disrupt more industries.
Real but Unequal Investments
Quebec led the country in the number of individual venture capital deals made by individual start ups, likely pointing to its more dynamic start up culture. Which has now been reinforced by multiple incubators and start up aid projects such as Notman House, Microsoft’s large investments in AI, and a healthy community of medium scale start ups.
Ontario led with the largest deals according to PWC with over 204 million dollars being invested in the Q2 of 2017 alone. This data shows a great future in tech for Quebec, Ontario, and British Columbia, but they also show a potential stark contrast to the west. Where almost no start up investments has occurred.
The West remained an area for large corporate investment and this has in many ways stifled western innovation and shows a problem within the Canadian mindset when it comes to business. By ignoring investment in the prairies we leave the provinces less able to innovate.
In the long term drastically limiting their capacity for growth in a tech based economy, drastically hindering those provinces from moving forward towards an ai economy without massive layoffs.
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