An article posted on the CBC has found that Canada’s stellar economic growth may be heading for a downturn, with serious consequences for the Liberal budget.
That slower-growth number has large-scale effect for every government promise as previous forecasts had already projected a government which would maintain deficits until 2045.
The article on the CBC site further points out a bleak overall view where economic growth is stymied by low productivity, and aging society, and lacking investments.
“This very rapid pace of growth is not sustainable going forward as … transitory factors start to wane and interest rates will likely continue rising,” says the bleak Oct. 4 note, ordered by Morneau and drawing on internal economic analyses.
“The department’s internal assessment, made three months ago, is generally in line with current forecasts by private-sector economists, who note slow growth in Canada’s labour force because of an aging society, and the lack of business investment in equipment needed to boost labour productivity.”
Real Action Required
Canada’s aging population requires a real response in the age of technology. The current stance involves further centralization, taxation, and a removal of corporate flexibility.
Now I would not reject those things if the government at least had a plan. It has none.
An article in the Huffington Post, for example, discusses a report by McKinsey and Co which stipulates that over 40% of the Canadian job market could be automated. In such a case the country which innovates will be the one which dominates. In reality, the Canadian government should aim to increase corporate flexibility and support innovation from every Canadian.