Canada's Roadkill in Global Economic Competition: A Wake-Up Call for Policy Makers

 

Canada's Roadkill in Global Economic Competition: A Wake-Up Call for Policy Makers

Canada has long been regarded as a stable and prosperous economy, but recent developments have led to a stark reality: the country is no longer a major player in the global economic competition. In a recent article, The Globe and Mail's Jeffrey Simpson aptly describes Canada's economic situation as "roadkill" in global economic competition.

Lack of Investment in Infrastructure

One of the primary reasons for Canada's decline is the lack of investment in infrastructure. According to a report by the Conference Board of Canada, the country's infrastructure is in dire need of modernization. The report highlights that Canada's infrastructure is 20% below the average of other developed countries. This lack of investment has resulted in congestion, delays, and increased costs for businesses and individuals.

Decline of Manufacturing Sector

Another significant factor contributing to Canada's decline is the decline of its manufacturing sector. The country's once-thriving manufacturing sector has been hit hard by globalization, automation, and competition from low-wage countries. According to Statistics Canada, the country's manufacturing sector has shrunk by 20% since 2015, resulting in significant job losses and economic stagnation.

Rise of Service Sector

While the manufacturing sector has declined, the service sector has seen significant growth. However, this growth has not been enough to offset the decline in manufacturing, and Canada's economy remains stagnant. The service sector has become increasingly reliant on imports, which has led to a trade deficit and a decline in domestic production.

Policy Solutions

So, what can policy makers do to address Canada's decline in global economic competition? Firstly, investment in infrastructure is crucial. The government must prioritize infrastructure development and modernization to improve efficiency, reduce costs, and increase productivity.

Secondly, the government must focus on supporting the manufacturing sector. This can be achieved through targeted policies such as tax incentives, subsidies for research and development, and training programs for workers.

Thirdly, policy makers must address the issue of trade deficits. The country must prioritize exports and reduce its reliance on imports by implementing policies that support domestic production.

Conclusion

Canada's decline in global economic competition is a wake-up call for policy makers. The country must invest in infrastructure, support its manufacturing sector, and address trade deficits to regain its competitiveness. By taking these steps, Canada can regain its position as a major player in the global economy.

Support JusticePretorius

If you found this article informative and useful, consider supporting JusticePretorius by buying them a coffee at https://www.buymeacoffee.com/JusticePretorius. Your support will help us continue to provide high-quality content and analysis.