The Stagnating Economy of Canada | Economics Explained

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Canada is one of the wealthiest economies in the world today, but the OECD forecasts that the country will stagnate and is poised for the lowest growth of any advanced economy over the next 5 years. So why is Canada struggling to grow and what can this tell us about other advanced economies?

0:00 – 1:19 Into
1:20 – 2:25 PIA sponsorship
2:26 – 3:13 Geography
3:14 – 4:44 Labour productivity
4:45 – 6:38 Capital investment
6:39 – 8:46 Financial markets
8:47 – 10:12 Rivalry with US
10:13 - 11:05 Real estate prices
11:06 – 12:30 EE national leader board
12:31 PIA sponsorship

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[cobra-chicken]

Canadian working in the US here. At least in my industry the income gap between US and Canada is massive. I can get almost twice as much income within the same company under the same job title when you factor in the exchange rate, while also paying lower taxes.

I am actually getting paid about the same here in the US as my manager, who works remotely from Canada. He is considering moving to the US by the end of the year.

[mwm]

I’m surprised you didn’t talk about the CMHC and how the average home is twice as expensive as a US home despite Canadians having less than half the average discretionary income than people in the US

[SecretOwl]

EE missed the most important detail about Canada: it's a natural resource economy. It's primary economic activity revolves around mining, lumber, oil, and natural gas. The closest countries to Canada economically are places like Norway or Russia, not the United States. Both those countries are resource economies as well, and they experience the same "brain-drain" issues as Canada for similar economic reasons.

[amirsayyar]

As a Canadian software engineer who is moving to the states, everything you said was 100% accurate. Housing in Vancouver where im from is so bad that I can't see my self to even remotely buy a condo or an apartment for the next 6-7 years eventho i make well above 6 figures. My American co-worker makes almost double the amount and has to pay way less for the same house 200 miles down the border in Seattle

[tombutler]

Absolutely spot on, as an Australian who moved to Canada I’ve found that Canadian industries are too afraid to spend money on innovation especially in construction.

[barbaros]

3:00 - As a Maritimer, seeing New Brunswick, Nova Scotia, and PEI completely ignored as part of Canada when talking about the economy is one of the most accurate parts of this video.

[Stefi]

As a Canadian I can shed some light on this: The bedrock foundation of our entire economy is repeatedly selling each other real estate at ludicrous prices. We don't have capital for any other kind of business investment

[SpeedOfDarknesss]

"most of my audience is American and they tend to lose interest if they're not mentioned every few minutes"
🤣🤣🤣

[WilliamPitcher]

I get the comparison to the States, but without a comment about Canada's productivity and capital investment compared to other developed countries, I have no idea if Canada is uniquely underperforming on those metrics or the USA is in a category of its own. I might assume the former based on the overall GDP projections, but this could have been much more direct.

[coolg]

Canadian software developer here. You hit it dead on. Once my commitments here are done, I will be moving or contracting out of the US to make more money.

[rayxr]

This video could have done a better job going into the industries that make up Canada's GDP. It just briefly went over the brain drain factor that contributes to the stagnant GDP, but does not go over much of the history.

[michellefeng]

I am a Canadian student who has decided to move to the US for grad school, I will be getting paid at least twice as much as any Canadian schools can offer. I'm glad this way I can focus my energy on my actual research rather than slaving away at grant and scholarship applications during my PhD. It is unfortunate that I will be contributing to this brain drain in Canada, but I'm not offered a good enough deal to stay so I have to look out for my best interests

[nafrost]

I gotta say the intro on this video felt wildly disconnected from the rest of the video, you said at the intro that you are going to explore how relevant the issues of Canada are for the rest of the developed world, and how Canada can fix them, and you did neither of those thing. Even more hilariously for me, you said that Canada's issues are going to affect the US also, but as it turns out, the issue was brain drain to the US.

[zwikhd]

As a Canadian tech worker, I can give another interesting take. Since the pandemic, a lot of American companies have started hiring tech workers in Canada. Remote work of course. This is extremely interesting for Canadian tech workers, because you keep all of the social securities and overall safe place to live that is Canada but get the American tech worker salary.

[check]

For the first time, I feel we need a part 2. As a Canadian I feel like a lot of stuff was left out. Everything thing stated is true and accurate but I feel there are alot more topics to cover. I think Canada is in more trouble than anyone realizees.

[nestorjrabalos]

Canada’s cost of living is ultra high while salary isn’t so high especially for newcomers. This discourages staying much longer in Canada. Majority of immigrants flee after few years coz they can find higher compensation elsewhere like the US. This leads to brain drain overtime, which has a corresponding impact to economic growth. That’s why Canada is always encouraging huge immigration. To replace the ones who got fed up and fled.

[darnellcapriccioso]

Well I'd be retiring or working less in 5 years and I'm only curious how people split their pay, how much of it goes into savings, spendings or investments?? I earn around $165K per year but nothing to show for it yet

[seanmercer]

I worked in Canada for a startup. Way more advanced than anything within the region, and we could NOT find domestic funding. Government funding here is *extremely* mismanaged as well. Had to look to American investment and it came almost instantly.

Just amazing how different the economic culture is here to our neighbours.

[FlintIronstag]

My primary care doctor here in the US was from Canada. The vascular surgeon I used to work for also was from Canada. I can definitely see the issue of Canadian brain drain.

[bradcomis]

This real estate problem is what I have been telling everyone about here in Vancouver. It is the number one hinderance to growth for us in Canada. Starting or investing in business is too difficult because housing costs soak up all the extra capital of the low to middle class. It is really a shame and at this point there really is no end in sight (afaik).