Canada’s low productivity is scary: University of Toronto’s Professor Angelo Melino
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- Опубликовано: 4 сен 2023
- Angelo Melino, professor of economics at University of Toronto, Mississauga, and a former special adviser to the Bank of Canada joins BNN Bloomberg to preview the Bank of Canada’s interest rate decision on Wednesday. He says we are yet to see any real evidence of disinflation even as growth is slowing. He says Canada is failing to invest in its workers and the economy is doing horribly on the productivity front, and is already in a per capita GDP recession.
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Dear Prof Melino, productivity is in decline amongst young ppl bc we’ve lost all hope that hard work will actually yield us a good life, hell even a stable life. While we used to be focused on our work, now, our attention is diverted, as our minds are devoted to figuring out how to move out of Canada, something we never ever thought we’d be facing. For the first 13 years of my career, I worked my ass off, quickly rising above my peers and changing jobs every 2-3 years to advance myself. Now, I see that though on paper and to discuss, I have achieved great things, I still live in a poop hole of a house in a depressing suburb. I can’t afford anything. I live like a poor uni student, at 40. We are shell shocked, grieving and trying to process how much we have been betrayed by our government and employers.
It's your poophole house that's keeping you house poor and taking money out of the economy that would otherwise go towards businesses growing and becoming more productive. Canada's insanely over priced real estate is the culprit here, adding more ppl into a country with a housing crisis will only make everything worse.
U of T professor. That title says it all. Liberal institution!
Mass immigration of 3rd World poor = 3rd World Canada
I second this. As a 28yo I’m in a similar position. Emotionally. Not financially. 😅 I’m dreaming of leaving Canada. And I believe gen Z folks will be able to realize this even before.
I am you, went to University, did everything right and it is just all way too expensive. I went on sick leave recently and I being born and raised here, must move to the U.S. Its insane how much Canada went downhill. No body cares about work because life sucks here!
It makes zero sense to blame people for the government's policy failure
We voted it in. We also shamed people for differing thoughts. The BOC is simply responding to inflation with I.R rates. The gov. policy mistakes were done from 2020 to April 2022.
Look at how many welfare mooches we have now compared to working class people. Between refugees, welfare, first Nations payments, etc. We have more and more people taking money out of the economy than workers paying taxes into the system. That is destroying the country and libtards can't say no to anyone.
The Bank of Canada's entire job is to lower inflation, consumer spending ( people) was continuing to be high until recently. The failure in policy is that high interest rates ironically has mad the Canadian housing a rent market high wish is also contributing to inflation.
@@MrAlen6ethe BoC’s only real job is to secure its own stability and self interest. Economy paused from Covid? Lower interest rates and pump money into the economy. All that cheap money caused inflation? Raise interest rates. They don’t care who they hurt, their only interest is their own stability. They’d let a million people lose their homes to foreclosure before taking a hit.
mass immigration is the reason for the continual decline
Canada doesn’t make anything anymore. Our GDP growth is artificially generated by our real estate bubble which only drives consumer spending on discretionary goods and overpriced services/leisure. That works in the US because they have a diverse economy as well as that consumer spending. But we literally don’t make anything anymore that anyone wants to import, just our raw resources. Forget about Bay Street coming up with any ideas. They could care less about manufacturing and any long term planning because it doesn’t turn a buck fast enough. It should start with promoting home grown businesses that serve local economies and getting away from importing to turn a profit.
our realestate bubble and declining productivity is the result of mass 3rd World immigration of useless people that cost us $60 billion/yr in taxes/debt
You mention "Bay Street" but leave out the contributions of government and consumers to the problem.
(It also puzzles me whenever someone says 'could care less' when they mean 'couldn't care less.')
@@dixonpinfold2582 True, I couldn’t care less is the correct phrasing. In my mind, I do include government as being at fault but criticism either always blames government for doing nothing or being too intrusive. I generally don’t blame citizens because they adhere to government policy or corporate manipulation. Individual voters/consumers have little effect in today’s political and economic environment.
@@roegoleg Why _should_ one's vote have much effect if one is merely 1 of 40,000,000? It's illogical to hope for.
But one's spending as a consumer is rather different. Whatever we buy puts wages in the pocket of _someone, somewhere._ That puts the responsibility for the decline of Canadian manufacturing squarely on Canadian consumers. They're the ones whose hands pull items off store shelves or hit _Order Now_ on order screens. Any other view is excuse-making.
@@dixonpinfold2582 when global corporate monopolies control what is available on the shelves (and undercuts all competition - albeit temporarily until they are quashed - it leaves very little chance for local businesses to develop and grow, and to offer products that can compete in price. In the end, we can just disagree on the possible solutions.
I'm surprised he doesn't know why the productivity is crap in Canada. Could it be that we're so enormously over leveraged in real estate that Canadians are not putting in as much money towards businesses?
No ones working, everyone is "investing" lol
DING DING. The capital isnt available for the workers because its being stolen by the rent seekers in real estate. Sick country
He knows, but he isn't allowed to say it on air ofc. He's a professor so ofc he knows, unless he's an incompetent professor at UofT
That, and there is a lack of competition. Infact, lack of competition may even be a bigger problem. 5 big banks and 3 telecoms is Canada in a nutshell. We need more comapnies here.
Could it be that workers found out the rest of the world get 3 to 4 weeks pto minimum. Honestly whats the point. Germans are way more productive and get more vacation than us. Maybe employees have lives outside work and want to do things they enjoy as well?
A country like ours, with $33trillion in natural resources, should not have low productivity. We should be #3 in the world in terms of GDP.
gdp is a messed up measure of productivity. Ireland's GDP is way higher than Canada. I believe the year after Apple europe set up shop in Ireland, the Irish GDP doubled. Does that mean the irish are highly productive? Likewise, does Tesla, Google and Meta and a hundred other multi-nationals in the USA make USA workers more productive? i have yet to see a deep dive into industry by industry comparisons.
@@rb239rtr you're right, GDP is a skewed measure of productivity. But in Canada all we do is buy/sell Realestate to each other. We hardly invest in any other industry. And why would they? when you can just get a HELOC and buy rental properties.
@@rb239rtr high housing prices mean high land prices for businesses which makes setting up in canada bad when their is cheaper and they aren't targeted for being successful just south. on average USA companies spend 6 thousand more on per worker and they work more hours then Canadians so naturally they are more productive and more attractive to business capital.
every week at work i hear someone talking about their upcoming vacation plans. i have coworkers who can navigate the cruise line websites better than our internal database system. that is the mentality so you can understand the low productivity@@matthewhungerford1861
Well you can thank poor leadership for that. When an organization sucks, look to the top.
I was looking forward to getting a $6500 bonus from work. After tax it came to around $3400. I felt so defeated as I thought I’d get something around $4700 and I could pay off more debt. I’m done here man. I can’t afford anything.
Lesson learned. I'm done working for poor pay or extra taxes. I would prefer to be with my family l.
Yup, working 10+ hrs a week and lose 35-40% of it in tax.
It's helping keep the lights on, but not getting further ahead.
And sure, BOC just loves when people put money in the banks so they can use your money for investment income...
Stop voting for these fools promoting government intervention. It feeds the corruption and waste .
Similar thing happened to me as well. So disheartening. We pay so much taxes but sure don't see much of a return on that investment. Other nations have high taxes too but they come with a lot more public services and resources you can tap into. Corruption, incompetence and greed is siphoning away our hard work.
Clownadians love being tax donkeys. As someone who was born poor therefore always going to be poor, I think its hilarious to see the people who looked down on me and treated me as though I was less than them in the same situation if not worse than me financially.
You can call me a loser for taking the bus all you want, but I'm not the one wasting my money on the carbon tax & being a wage-slave to make car/insurance payments so all those tax dollars can get sent to Ukraine to buy Zelensky some new heels 👠
Ummm, my combined ~42% tax rate (fed and provincial) is enough for someone to not give a fuck.
I’m very skilled at what I do, I pay 50% taxes on my tax bracket, I have no incentive to grow in my job, I feel like I’m always being taxed and get no benefits
but everyone is raving about "universal health care!"
@@unhinged9650 I mean it's crazy how you're expected to pay for potheads destroying their health due to poor life choices. I'm all for people in need, having a chronic disorder etc. But I'm not okay with spending millions of dollars on potheads not contributing to the society, doing coke, falling sick and then needing all the medical facilities for free
Consider UAE 😂 no taxes. Live like a king with slaves even. No big govt reaching into your pockets to provide for potheads there!
@@sidverma1888 pot heads? We have serious drug problems in Canada and marijuana ain't it!!
That’s your marginal tax bracket so you’re only paying that much on a portion of you income but nonetheless, it’s BS what our work yields us.
Grocery inflation is ridiculous. 3 days worth of food for 2 people is 150-200 bucks and thats shopping for whatever is on sale
It's ridiculous. We're fortunate enough to grow a little garden, but come October that will be done for the winter.
Where are you shopping? You don’t need to be spending 150-200 every 3 days for 2 people.
There's no way 2 people should be eating that much food over the span of 3 days and if it's actually a normal amount, you're most likely not actually getting deals but are being fooled into thinking you are. You might need to have someone audit your grocery shopping lists lol
@@icouldjustscreamyou should look into preserving food from your garden. If I had land I'd be doing this, my family does this on the farm.
My bill is like 700 750 for the month for 3 people and I eat very good mind you it used to be like 500 before the pandemic so yea prices have gone up but 150 to 200 for 3 people for 3 days must be eating the most expensive pre packaged shit you can find on Sale or eating t bone steaks everyday
when a full time job does not afford even a 1 bedroom apartment can you blame people for not being productive? I spent my life working hard going above & beyond but I never saw ANY incentives whatsoever and now the next generation are entering the work force just as naive as I was at their ages... and they are going to work hard only to realize it is futile....
If the job can not afford a small family to own a small house then it is not a job worth doing!
What about teleworking instead of whining? In life there has never been so many opportunities and solutions than nowadays. You just can't think like if we were still living during the 60s area.
They dont need us anymore, in the billions, they only need a few hundred million human robots, to serve the alien elites.
@@marcoprolo1488 I am thinking in the capacity of raising a family.. and no full time job should pay less than is required to support a small family... to argue against this just shows how morally bankrupt some people are... We need changes to the system of how we do things... significant changes whether we want them or not... society is hanging on a cliff right now and there aren't as many opportunities as you may think when 90% of the national currency is consolidated in a selected few individuals bank accounts.. and pointing out problems is not whining.. before a problem can be fixed first we need to realize there is a problem.. and with clowns like you no wonder it has become such a problem in the first place
But your saving the environment. Wait pay more tax 😂carbon tax and a corrupt librial ndp government love you 😂
@@jmohafa6939 why do you assert that I support the carbon tax? instead of fixing the problem they are profiting from the destruction of the Human Species and plunging Earth into the last half of this final ice age cycle that ended ~13000 years ago(Pleistocene Epoch), revealed by Younger Dryas Sediment Layers, Nebraska & Carolina Bays Geologic Formations(search images).. There is much more to this "Pre-Historic Cataclysm" with not only Geologic/Climate influences but also Geo-Political issues that have been resurfacing since before the Dawn of Time.. Since the time they first attacked Jericho.. Which happens to be in Palestine..
So before asserting that I am something I am not, how about letting me speak for myself..
**I am against 6 million people dying every year from air pollution spewing out of 2+ billion daily "Commuters"... Cars are great for chores but we exploit them by commuting with them.. The problem with the world is Commuting.. not Communism.. lol.. o.O Apyr!
Who needs to watch Clockwork Orange when we are living it... ☘❄
Since 2015 Canada has SUCKED!!
After working 84hrs a week . I get very sad when I get my paycheck 😢 due to taxes , no motivation to continue working hard
Yeah man just do regular 40 hours
Getting a citizenship and getting out is going to be the next immigration idea for folks coming into the country. 3 years is enough for anyone to know what they got themselves into. I recommend all immigrants coming in 2023 not to feed the real-estate market at all.
Once I have my passport in hand, selling-home and saying goodbye to Canada.
Not gonna happen. The problem with immigrants is (and I know because I am one) that they want to show everyone back home that they "made it". That happens with a lot of borrowing, houses, cars all on mortgage and loan. And the down payments for mortgages, yup you guessed it, off the book loans!
Those who have options the brightest will leave and the refugees with limited potential will stay.
It takes far more than 3 years. Many people don't want to go through that trouble!
About 2 years to get PR in the first place, then another 3 years wait, then another year or so processing time to actually get citizenship.
So, roughly about *6 years* in total!
Immigrants don't have the same issues as working class Canadians, Immigrants have access to all the dirty money from back home. How do you think they're able to buy up all the homes and businesses while the Majority of people living in poverty are Canadians?
Trudeau sold your nation to foreigners they're not just going to give up their investments freely.
Living in Canada is hopeless. That’s why productivity is low. It doesn’t pay to work hard here.
Crime and laziness is rewarded, hard work and innovation is sneered at and punished.
@@potatopotato8360 Mediocrity is highly valued. Excellence is not nice and offensive.
@@myleshagar9722
Which is why any Canadian with some talent and ambition move to the States to establish themselves.
Yes I know
I work a lot of overtime only because I have the option to convert those hours at time and a half or double time into banked time. If my company offered overtime pay only I would decline. No sense to work my ass off only to have everything stolen from me in taxes. The entire layout of our taxation system is a poverty trap. It creates a cycle of dependence, perhaps intentionally. If you keep your income below certain thresholds you get tax breaks, incentives, GST cheques and a slew of other perks. The guy that tries to get ahead just gets beaten over the head with taxes. Until that changes I will just live a more minimalistic lifestyle and many others are doing the same. You cant quantify how much this stifles the economy and our quality of life as a whole.
Amen brother, or should be taxed at a flat 20%
Have you actually gone to the bottom where you get the GST cheque? I make a good deal more now but 4 or so years ago I was making $22,000 a year a Residential Councillor - A job I had held (but was in school to escape) for many years. That meant I paid about $2,500 in taxes and got GST rebates in the mail. On $22,000 I could not even pay the $2,500 I owed come tax time and that went on for years. I'd eventually pass $15,000 in back taxes which triggered the CRA calling me to try and set up a payment plan (I assume, but don't know for sure, that if you pass the $15,000 mark in back taxes you cross over some line and they start dealing with you). Even so I was probably lucky in that friends and relatives would help me out in small ways and I was able to get by but it was always close to the edge and there was basically nothing in terms of disposable income. Eating out meant some one else had to pay for me. I used to visit my dentist every month, because I always owed her, and pay her $125 down when I was poor. I was so grateful - She did not have to give me dental care and let me slowly pay it off.
Fortunately for me I got a bit lucky and I had the education etc. so I landed a real job in a big corporation and started getting real pay with actual benefits (yay dental insurance!), bonuses, stock options the whole kit and caboodle. I pay way more in taxes now, even had to pay off my back taxes and there were no more 'free' GST cheques. There is no world where I would go back. Being part of the working poor absolutely sucks. On $22,000 (and not paying my taxes) I had around $225 a week to live on after rent and a few bills (like the phone - which had no data and only worked as a smartphone with Wifi). If I lost $50 bucks for any reason that was a huge deal. These days if I lose $50 I just shrug my shoulders. I mean $50 is not worth having a bad day over.
It makes no sense to me that poverty is intentional. If having poor people was good we would aspire to be Chad or Haiti. Being at a point where you get those tax breaks is utterly miserable and few would do it intentionally. I certainly understand the idea of taking time off instead of more pay and even maybe that an increase on the taxes in that tax bracket might be the deciding factor but I have to say that increased taxes won't be stopping me from asking for another raise.
Heck if I can find the right politician I'd vote them to tax me more. The free Cradle to Grave healthcare system was maybe a literal life saver when I was working poor. There was a point where I dragged my ass to the Hospital because a really bad cold would not go away and I basically could not sleep from the coughing. Turns out it was not a cold - I was in quarantine (in the hospital) for a week and was told that there was a good chance that if I had not visited the hospital my lungs would likely have collapsed. If I actually had to pay for the healthcare (other then through taxes) I would have kept trying to outlast the 'cold' with probably fatal results. These days I blow thousands on vacations (Churchill Manitoba is awesome, highly recommend). I could probably afford to pay a bit more.
Everyone loves tax cuts until they're affected by a social program cut and suddenly have to pay $500 out of pocket instead of $400 in taxes
@@JeremyMacDonald1973 inspirational story for someone who is still struggling with that degree trying to get where you are now. Thanks for sharing 🙌
Is it really a bad thing if greedy gluttonous Clownadians are prevented from stuffing their fat gullets
"Interest rates will be low for a long time". - Tiff M.
"And the budget will balance itself" - Trudeau
"Interest rates will be low for a long time". - Tiff M.
His comments came after the central bank announced it is holding its key interest rate at 0.25 per cent in response to what it calls an “extremely uncertain” economic outlook due to the COVID-19 pandemic.
if one is prepared to grow the economy, the budget will balance itself
@@rb239rtr You still don't get it.
@@thecanadian8719 The budget only balances itself if you are competent which this government is not.
its basically 30% of Canadians carrying the rest of the country. The rest are either old, government employees entitled, dont want to work, overvalue their labor or a combination of all of the above. Theres no saving this only delaying it unless a leader with enough gall comes to make the hard decisions. I very much doubt Canada gets such a leader with the severe lack of testosterone Canada produces and for the fact that most young men of any capacity choose to leave to U.S. We have the most competent of the in competent people here.
I have two jobs and still live in poverty. I don't pay taxes other than GST/PST (not like I can afford to buy much). I want to work but there aren't many opportunities. I have 2 degrees and they ended up being useless. I've thought about going to school again but I don't want to waste more time and money when there probably isn't going to be a career at the end of it.
@@anonimouse9410 If you're under the age of 40 i would suggest moving to America. Even under 45 I might say the same thing. Odds are you will earn 30-100% more in most cases and spend less on living.
Canada is a sinking ship. Hard working people like you will end up subsidizing all of the lazy and incompetent people in Canada and thats like 70% of the population here.
@anonimouse9410 The dead Canadian dream under Turdeau. Vote Conservative, so hard work doesn't get punished.
LOL every political party is a fucking shitshow. You honestly think the Cons will be better? They have no plans to address immigration, housing, or price gouging. Look at Alberta...electric bills and insurance up over 100% thanks to privatization. Cons will do huge giveaways to their rich friends while the rest of us get austerity. BTW I do not agree with Trudeau and I did not vote for him. The truth is, no political party has earned my vote in a very long time.@@jshuyaclips1616
You don’t get rewarded for participating in the economy in this country. You get screwed over and hassled. Like you do overtime, your taxes increase a lot more. You drive more, you car repair an gas bills get bigger. You want to buy more stuff and support businesses? You get trapped in long lines, traffic jams, and maybe can’t even find a shopping cart. Hell, you might even be able to find a shopping bag now.😆
Welcome to real life. And yes, it is good to stop these plastic bags. Just have a bag handy in your car and you will be fine.
Well said SIR. I work part-time, tired of paying more taxes. I want freedom over things.
it would be great if USA could annex canada, canada needs a strong leader like trump
@@MasterofPlay7 Airfare is cheap, head south to paradise. Trump does not have a single answer for anyone but himself.
You hit the nail on the head. No point in trying to build anything or start a business in Canada. Just get a govt job and buy properties. It's the Canadian way.
Don’t worry about the BoC credibility, it lost it already in 2021
Stop printing money . Stop the blame on forest 🌳 fires and strikes !
Why would I be productive in a country where I have to pay high tax and get nothing for my tax dollars? Please do the math.
i would prefer to get paid in crypto, precious metals or cash to avoid taxes...more companies and workers should come to an understanding and give the other side a 🖕
When the top employer is the government and the best business model has been property kind of says a lot.
Bingo🎯
Sad but true.
Overregulation is one of the key problems. Of course, population is also important to boost growth through consumption. But the root cause for low productivity is fiat currency model (which helped to print trillions of dollars out of thin air despite poor growth rates) followed by not just Canada but also other western nations. But it is going to end after de-dollarization or after 2025. So, productivity in the form of manufacturing must increase. Otherwise, people are going to be forced to consume less in the name of "climate change" (so forest fires from Canada to Hawaii were triggered) and walmart/costco shelves are going to be empty due to "decoupling" from China
Well Canada is a very large business...that why there are a lot of workers.
Government, banks, and real estate - Canada's top industries. None of them produce anything
I've heard it said that Canada invests more heavily in real estate as opposed to business capital. Also we regulate our trades more heavily than our Southern counterparts
We don’t all at invest in real estate - we are 37th slowest of all the OECD country to build houses. The prices have just tripled in 15 years. 😑 So nothing is being made by our biggest industry - the prices are just going wild.
@@nadia.lewis. Housing costs are high BECAUSE we didn't invest in real-estate and had no foresight into our growth and the needs that may come with it, driving up demand. I see.
@@curtheisler1200 nah. There is no shortage of homes. There is only shortage of affordable homes since most immigrants want to settle only in and around cities. It is because most businesses and jobs are concentrated only in cities. This has increased huge demand for homes and also pushed property prices very high.
@@curtheisler1200 no, we have enough money going into mortgages. Interest rates have been at historic lows.
The problem is more broad. We need a diversified economy. Look at all the consumer items around you. How many were manufactured in Canada?
Now ask yourself, of the stuff we could have made in Canada, how much was regulation stifling the ability for the entrepreneur to bring said goods to market?
@@nadia.lewis.no, we did invest all our money into real estate. They just kept overpaying for existing home instead of building more. The money was still being added just in the most unproductive way imaginable.
Marginal tax rates, as you pay more personal income tax for everyone dollar of income; I believe, it can be as high as over 50%. Crazy.
My SO and I pay 52% if you include all forms of tax
Shit I am at 52% as well. No wonder the really rich people are leaving and why Foreign Capital Investment is at 1995 levels. Lol
Marginal tax rate on income is 53.3% for highest income earners in Ontario … Not 52% .
Add HST , add property taxes … we are taxed to the hill. You want to why productive is low in Canada ? Socialist governments, spend our tax dollars inefficiently .
We are not the best in the world for anything , are we ??? So how can we have good productivity numbers ?
Learnt that in business school many many years ago from my economics profs and we still have numbers in the dumps .
Next election … don’t be misled by this present PM .
When you tax less , more citizen can grow the economy by their personal wealth growing … more business owners and more entrepreneurship, shrink footprint of governments. If you do that over next 10 years , things will move upwards for citizens.
In 25 years , your children will learn to delay instant gratification and build their own wealth with their own hands and not from an inheritance or be entitled.
Gosh , bring back the parents and lessons they taught their kids … those gem of parents raised kids in 1930-1960’s.
We are lost as a nation . Very sad …..
@@berniecelee5062 very well said sir! I agree!!!!! i cant believe what parents of today have produced for future work force... its truly disgusting!
Notice the corporate media didn't once mentioned the fact that one of the biggest contributors of inflation is corporate price gouging? Who do you think they work for?
any form of carbon tax or "living wage" increases are passed on to the consumer, what do you expect?..... for the corporations to eat it ?!? LOL!!!!! now learn to enjoy Dildeau's policies!😃😃😃
That's nothing compared to the taxes and restrictions the government imposed on them which are passed down onto the general public in the form of higher overall retail prices.
@@shauncameron8390 the last couple years have been the most profitable corporate years ever in history while everyone else has been suffering. I guess it's just a coincidence!?
@@berardoferrari yet for a couple years they've been making record profits. Guess it must be more of those pesky coincidences!
@@traviscutler9912 LOL!!!! you listen to CBC,PBS, and global I see!!! fact is that expenses have gone up, tin up 53%, pulp up 45%, freight, fuel, labour so the price of business is going up not just for groceries, but building materials, you ever go to home depot???? LOL!!!! food inflation is coming from the wholesale food markets ( suppliers of food) regulated by the canadian food marketing boards!!!!!! now go back to sleep!!!! LOL!!!! a little bit of knowledge, is a dangerous thing!!!!!
As many skilled people have said here , there is no point in working hard to get a head ,
because their incomes are going to be taxed away , and opportunities to buy a house are pretty well gone .
.
Very simple, there is no competition in the economy, air travel, communications, health care, banking all very much regulated by the gov, and no companies from south of the border want anything close to Canada because of that. We need to open up the markets stop exploiting the canadian consumer which pays the highest prices in the world, we need more competition! More capitalism and less way less taxes
We need Chinese style competition and their passion for business.
@@myleshagar9722
Most of China's businesses are owned and run by friends, family and acquaintances of the ruling CCP.
My aim is to cut my productivity by at least 66% within the next 3 months.
It will be 100% if I don't see some co-operation.
Yes it was always shocking for me how everyone in Canada is in service industry. No productive. Very weird. Country like that can go down easy.
I dont know. Maybe people found out that their productivity gains especially in large corps have been going to shareholders and the upper management for decades. That and they get 2 weeks pto vs 3 or 4 minimum for most of world (europeans are more productice and generally get 4 weeks minimum) Maybe proper time off and being properly compensated for ones labour would boost productivity. And maybe being able to afford a place like prior generations and not see megarich people go around in ever larger yachts paid for by the employees labour (instead of paying the employees more) would help. I dont know. Its really mysterious.
@@abcdedfg8340 good points.
Why doesn't Canadian industry invest in it's workers to increase productivity?
1. Foreign corporations see Canada as a colony, it is better to have the colony poorer than the home country.
2. Canadian corporations do make investments, but not at the same level as foreign corporations do in their home countries, because Canadian corporations are largely oligopolies or monopolies and have no competition to fear.
3. Small business owners see larger returns from property investments than from business investments. The property market is a sure fire win. Why risk capital on a business venture that may fail when you can just flip properties or be a slum lord?
I had the exact same conversation this week end with friends , and as I said , Canada lack the money . If we start becoming a lot more productive , the US will just make more of us (the more productive) move there . I live near the boarder on the east coast . There are US state (maine , connecticut, vermont,etc.) advertising/asking for canadian doctors to go work there , they ll give them a good pay and make sure that the paperwork are not an issue .
Many small CCPC's that develop innovative products don't ramp up commercialization in Canada. They sell their IP to large foreign companies. Small companies have a tax benefit in the SBD (small business deduction) which reduces their taxable income. why ramp up your active business income over $500K and pay a higher tax rate? Canadian business owners are also more risk averse when it comes to more investment.
1 is true for most countries. 2 is a BIG problem for Canada. They really need to fix 2 ASAP. 3 is another massive issue. Investment in RE has finally gone over business investment what a joke!
Canada is like a Third World country. Its economy is based almost entirely on resource extraction such as timber, mining, fishing, and agriculture.
I think these are good things, Canada has $33trillion in natural resources. What's bad is we are investing too much in Realestate. All we do is buy and sell Realestate to each other.
@@JJs_playgroundthank you!!! Finally someone that talks about investing into Canada’s natural resource. Look at the EV boom that’s going on, we can capitalize on this… also the ring of fire in Ontario.
@@yurifleming8031Sorry, EV is a pipedream. May create temporary jobs but ultimately will be a disaster to the environment.
@@eazyb7974 how will it create temp jobs if we need the miners to dig up the materials for the EV? Pretty sure Canada is a world leader in ethical mining, so i’m not sure what you are talking about?
@yurifleming8031 "ethical mining"? Are you aware how these materials are recycled after their life cycle? May want to look into that, they is a reason why it's not done in Canada.
Paying the highest taxes in the world definitely has an impact on productivity .
In comparison to most European countries, Canada is middling.
That is what the carbon tax is to do, lower the productivity.
Want us to work 60 - 70 hours a week like our neighbors to the south so we can play keeping up to the Jones's ? No Thanks
Canadians not living in Quebec already do that. Canada's household/consumer debt is even worse than the US's despite the US's reputation for consumerism.
Who would have thought hiring people only to fill identity quotas would lead to lower productivity? 🤔
Couldn't disagree more. The reason Canadian organizations are so far behind their counterparts in the US and other countries is their lack of diversity. Canadian organizations have a bunch of "old, white men" as they call it who can't adapt, think out of the box and actually "lead" their organizations. They in turn don't let younger people with diverse thoughts into top leadership positions despite many of them being better qualified, having diverse experience and fresh thinking going for them.
Low productivity is due to lack of capital investment by business. Not diversity.
@@noneofyourbeeswax371 🤣🤣🤣🤣 You couldn't be more wrong, more prejudiced, more ageist, or more racist. The US isn't ahead of CA because of diversity 🤣🤣. I've worked on many different diverse teams in the US for years and there are plenty of "old white men" running successful companies, plenty of useless managers of all diversities, and I've never experienced one instance where someone contributed anything because they were diverse. There are plenty of innovative "old white men", and most "younger people with diverse thoughts" know nothing beyond the "diverse thoughts" they're fed by the media that profits by stroking their egos with phony stories of how they're _the best generation ever_ and that they're better qualified because they're full of "fresh thoughts". One thing "old white men" know through experience that you don't is that the media sells the same BS story to every generation. The idea that people have "diverse thoughts" because of their age or the color of their skin is ludicrous. Racist.
@@RBzee112
Which is due to high taxes and restrictive regulations.
The low productivity has been the government restriction of needed permits for industry for 40 year's!
Hiring based on diversity and inclusion and not on merit, this is the results. You reap what you sow
The Canadian people should "lay flat".
Not worth it to work.
Bank of Canada increases Mortgage costs for most Canadians through rate hikes (mine is doubled)..... At the same time BOC says increasing mortgage costs are included into the calculation for the inflation rate..... as justification to keep raising rates to combat high inflation.... which is caused by rate hikes.... round and round until the economy is destroyed.
Yeah, I think they know a bit more than that. You could give them a bit of credit. These policy decisions are made based on recommendations of teams of seasoned PhDs economists. The only thing that is annoying are the politics and foreign interferences inside the decision process.
@@marcoprolo1488 Yeah I think I will give the Bank of Canada all the credit they have earned.... Still remember them lying 16 months ago when they were on TV assuring everyone that "Inflation is under control" and that "Interest rates will stay low for the foreseeable future"..... So yeah you go ahead and trust those appointed by 'He who wears Blackface' and you will ensure that this country suffers more than it has over the past few years.
@@seangriffin7803 Yes, it is exactly what I said. Political interferences are inevitable. And the BoC also follows the international financial oligarchy plan as well.
As a rule of thumbs, Wisdom commands to be very careful with lip service, always. I would not borrow just because an lgbt puppet tells me too. Would you?
Actually I did myself borrow too, rates were too good then . It's all about the exposure to risk and how much you can safely take on.
Most posters don’t have a good grasp on how GDP per capita works. As is mentioned in the interview Canada has been experiencing a productivity problem for a long time. Policies adopted by successive governments of different political persuasions haven’t been able to change this.
It’s not because Canadian workers are lazy. Our productivity problems are due to underinvestment in research and development, new capital expenditures and employee training by businesses. This is partly due to investment money going to the U.S.
It’s not easy living next door to the largest economy in the world. U.S. companies will set up branches in Canada, usually because of government tax breaks and other subsidies, when it suits them and pack up and move when it doesn’t. Some of their tactics are equivalent to holding our governments hostage. Resource industries don’t add much to our GDP. Neither do low paid service jobs. If we want to improve our GDP we’ll have to ensure that high value added high paying jobs don’t leave here.
But we better be careful what we wish for. Some of the countries with the highest GDP in the world also have high levels of inequality and a poor record on labour and human rights.
If you’re young, well educated and healthy it might make sense to take a job in the U.S. for higher pay but some of you might change your mind when you start a family or your life situation changes in other ways. If you’re a teacher, a firefighter or work for the police you’ll also earn more and be better off overall in Canada. You might not have as big a house or as many cars or not as much stuff as your U.S. counterparts but you may be better off in other ways.
That said, why aren’t we approaching Taiwanese and South Korean companies about setting up silicon chip production in Canada? Why aren’t we looking at the success strategies of smaller Scandinavian countries? Partnering with Germany to provide the clean energy some of our provinces have a lot of? Why are we so focused on building electric cars for the masses instead of electrifying long haul freight travel and building the transportation infrastructure of the future which will be trains not cars? Where are the initiatives to build the economy of the north by building transportation infrastructure there instead? Why aren’t we replacing those low paid workers with robots while retraining those workers for better jobs?
Inequality is the natural consequence of economic freedom as not everyone can earn the same.
@@shauncameron8390 Some inequality is inevitable but not to extreme levels.
Pandemic time work from home workers did work overtime to pay for their CERB. And they didn't see a cent of that money
Canada needs to stop investing all in real state and begin to put investments in entrepreneurs, small businesses and diversification, for a G7 economy capital cannot remain in one place , specially when you have a neighbor like the US
She smiles a lot while talking about inflation. She almost looks excited about it.
Right? Not an interview more like an infomercial for control driven banks and government
I'm excited too cuz higher inflation means higher interest rates. It will pave the way for the collapse of our inflated housing market.
@@jeffreyl2598 More for the TSX: CASH-T! And yeah, pop that stupid thing, it's cancer, literally...sucking up all our capital from being invested into actual work that produces jobs for people
My gosh, if wildfires affect our GDP to the point of mentioning it as a factor, Canada's economic outlook is worse than we thought.
We penalize workers for working overtime to get ahead. we stick them on a track with no way to get off. No way to speed up and then tell them to love it, take up gardening. We literally bake in the haves and have nots.
Canada under invests in research and development, and too much capital has been flowing into the real estate market for a few decades now.
I can't help but wonder if all the remote working has lowered productivity. Lots of temptations to goof off at home that would be more difficult in an office environment.
I worked at ATCO. That is a lesson on incompetence and low productivity.
what does ATCO do to stay in business ?????
More Tim Hortons workers and TFW’s should help GDP. Our tax system needs a complete overhaul. 100K is the new 40K here.
If that's true then I'm going to need a heck of a raise
@@deefed7973 Early 2000’s you could easily buy a detached house in BC earning 50-60K a year. Now, you can’t get a basic 1 bedroom condo earning that.
Productivity will drop even further as people are become hopeless specially when the system is working against them, things are becoming more expense and they are trying make circumstance for pay to drop.
Canada is one Country where the writing is on the wall but we are too blind or scared to read it?
Could it be because Canadians invest more in real estate over stocks in Canadian companies? Might it be because brain drain is a result of our best and brightest being attracted to places more desirable than Canada (e.g. young and energetic people who don’t want to pay inflated housing prices)? Might it be due to a total lack of an entrepreneurial culture and lack of incentives for innovation?
Due to Canada opting to continually kiss UK ass over fighting for independence like the US did.
Why would people work more when there is tax at spending and earning as well..
Productivity is directly related with tax policy. If I make more you cut more of my money so what's the point of making more, what's the point of advancing my company, productivity etc ? People are programmed to do less and be lazy in socialist countries. They will do the absolute minimum because individuals are punished for doing better and more. Then this becomes the new normal and you have a lazy population. It's a chain reaction and the self-righteous mindset in Canada is not helping it either. I came from the US with a PhD with big expectations and will go back soon. Because Canada is not innovative and 50 years behind US in terms of productiveness, innovation. There is a huge difference in 2 countries mindsets as well. In America, people strive to do better, to come up with business ideas and make money whereas in Canada people seek to find a guaranteed government job and sit forever. Entrepreneurship is lacking because the system is taxing and punishing the innovators and bright people.
And also live off of US financial and military largesse.
50 years behind US and 100 years behind China. Travel and find out.
Work is worth less than it was due to inflation, so workers do less or it's harder to find them. No economist can understand it, but that's the reality.
If you want to see what caused the inflation in Canada , suggest having a look at a graph of the BoC's M2 money supply over the past 5 or 10 years. . Our fiat currency is worthless .
.
I looked for the highest paying Monday to Friday job for the quickest and cheapest amount of college. Went back to college one year and got the certificate. Got the union job and do as little as possible every day, don't pay attention in meetings and sneak out five minutes early every day.. as planned.
Stupidity of everyone putting all their money in housing is the direct cause. Unproductive assets is all this country is good for now lol. We did it to ourselves and now we act stupid like we didn’t see it coming smh.
We don't export resources as much as we should that's why productivity is down for long time. It doesn't matter how many immigrants come and work. Money is in natural resources and the liberal government policies have discouraged particularly oil and gas investments.
The talk about productivity...How about dealing with the 800 pound gorilla in the room. The 35% exchange rate in this country?
The Federal Government being the #1 by number of employees in the Country. Doesent produce, or export anything. Just works against those that do, trying to stop them.
math is no a strong suit of leftist governments, they don't think about. but the exchange rate shows how weak canadian economy is.
The beatings will continue until productivity improves.
The two highest productivity sectors are oil and gas and technology. Trudeau has made O&G investment toxic, meaning 1 or our 2 productivity growth engines is down. Biased coverage to not discuss this...
The added regulations and red tape (including time to "consult and achieve consent" with land owners) may be turning off investors - both foreign and at home. Who has the power to makes a final decision? This includes to O/G industries, infrastructure (ie pipelines), resource industries like EV mineral extraction in Ontario's Ring of Fire. It becomes an unknown when/if shovels can get in the ground. Why put your $ here?
I think this dude was heading to a liberal fund raiser immediately after this interview.
@@albundy7623"I don't know why productivity is so low" my ass you freaking don't...
@@albundy7623academics love liberal politicians all over the world.
When you had only half of U.S’s after tax income for the same position and bear almost 1.5 times more house price, how would you expect to drive up productivity?
Equalization, and an expectation of being babysat from cradle to grave doesn't create a responsible, productive workforce. Decentralize the federal government and cut federal taxes by 50%.
This what happens people when people invest their money into real estate instead of innovation and businesses.
Because the government through high taxes and over-regulation have discouraged investment in innovation and business all too content with living off the US. Isn't this the social democracy big government welfare state the people voted for?
This is what happens with bad governance and rampant spending. Free tuition, free dental, free this or that. Now we are all paying for it
Maybe over regulation and growing false economies....
It is because of fiat currency model which helped to print trillions of dollars out of thin air. Who cares about productivity then? Let the Asians worry about productivity
We have used the US exchange rate as a productivity crutch for over 35 years. Unless we drop this crutch we will continue to punch below our weight.
Economics 101: Labour productivity is boosted by increasing capital and resources. Minimal capital investments and higer taxes on resource use will cause less capital and resources per worker, the end result is a low labour productivity.
And Canadians are lazy as fuck and most have govt paid jobs
Well Canada is absolutely winning in poor use of taxes, high taxes, and low productivity...
@@matrixripp09
Lazy, entitled, prideful, etc.
When i was 18 a banker told me that houses where built for banks not for people ....
Low wages and high taxes effect Canada's productivity!
Nevermind. Raise the rates. Inflation will rebound if not. People get spend happy as soon as there’s a pause. Then they’ll have to raise them even higher. Time for everyone who was not prudent to take their medicine.
The BOC lost all credibility when they told everyone that interest rates would be at zero for years to come in 2020....How many people bought homes with this advice?
They didn’t keep their word. Renewals are coming up for many. Hopefully they sort this out soon🙈
Laziness is rewarded these days so why bother working hard. Sad times.
What productivity? Too many new workers, not enough jobs being created. Employers want to pay 22$ an hour and demand 2-5 years work experience.
Oh and a single family house costs 1.5 million dollar so there's that.
Because high taxes and bureaucracy discourage entrepreneurship.
When BRP sends the production of their Sea-Doos to Mexico, you can expect lower or no productivity in Canada!
More people are working, they're working more hours, producing less output. I wish I knew...... Lets start with the amount of people "working" from home
Rates must go way higher, if not, there will be more troubles ahead. The rates are "Geopolitically Sensitive"
Either way, if they don't hike it tomorrow, they have to hike it later on.
Rate hikes are on the horizon for 2024, 2025, 2026 & possibly beyond.
How about getting the Federal government reduce there silly spending, wait it will balance it self.
Then why is the government announcing billions of dollars of expenditure promises over the last few weeks. For what? I hope it helps increasing the productivity.
How do these "experts" measure productivity?
Perhaps because they keep bringing highly skilled 275 pound women with 2 kids come here. They can help us build some houses while the kids sit on the curb. Perhaps it's because the apprentixeship programs in this country aren't working very well. If you are skilled and earn a higher wage, the taxes take away any extra money you have made by being skilled.
If the buying power of money is going down spend it now, why save.
The economy retracts, supply is bigger than demand, prices come down. That's why. Cycles of economic boom and bust. Only a fools spends all he has earned.
Need more mortgage fraud from the usual suspects
Tell you gossip about this, the example is twitter ceo and her nitwit husband the disparity in training hours sealed the doom of that company
The beatings will continue until productivity improves
We also had politicians continuing to get richer by raising their salaries 👍 We also continue to be lied to on a regular basis, as we can’t see through the constant bull our government spits out
it would be great if USA could annex canada
Your ancestors should have let them in 1812.
Gotta love liberal leaning bnn they never talk about why all the inflation where it originated from
80K immigrants a month is how to keep the GDP going artificially!
What about the housing bubble ?
Low productivity is directly tied to Trudeau's low seperm count.
LOL
It starts with our PM.
They let major grocers raise prices to obscene amounts and they wonder. The bank of Canada has lost its reputation long ago.
Low productivity his highly paid in canada. the two employees of GC strategies were paid 10 million by Trudeau and did no work so why produce
Why would I care about productivity?!?! Will I make more by the end of the year if the country is more productive??? I'll go at the beat of what I think my salary worth... without a rush.
What point is there to victim blaming when Melino should be focusing on the failed Liberal party and asking why Trudeau has not resigned yet.
just a thought but stop taxing energy
Ok who doesnt lnow someone ripped off by wsib. At best 10 yrs from now you get insurance
How about Melino tell us how his productivity has increased.
Canada is all good to raise Interest Rates and the stubborn core inflation gets dismantled with moderate hikes to get the productivity. Disinflation can't be said when the core inflation is stubborn as the median decreases are said to be disinflationary.
With our current government policies there is very little incentive to be more productive, all your hard work is just taxed away in an increasingly expensive place to live. Your employers are just responsible to themselves and their shareholders. The best answer is take as much as you can from them and just do the absolute minimum. Look after only yourself.
Isn't this what it's meant by tax the rich?