Canada’s Productivity Problem with Michelle Alexopoulos and Jeremy Kronick
Since the mid-1980s, US labour productivity has grown by about 100 percent. But in Canada, it’s only grown by roughly 40 percent. Lower productivity means the economy grows more slowly — and that means Canadians’ paychecks grow more slowly as well. Why is Canada less productive? And what can be done about it? Michael Hainsworth […] Canada’s Productivity Problem with Michelle Alexopoulos and Jeremy Kronick
Since the mid-1980s, US labour productivity has grown by about 100 percent. But in Canada, it’s only grown by roughly 40 percent. Lower productivity means the economy grows more slowly — and that means Canadians’ paychecks grow more slowly as well.
Why is Canada less productive? And what can be done about it? Michael Hainsworth speaks with the University of Toronto’s Michelle Alexopoulos and the C.D. Howe Institute’s Jeremy Kronick to get answers.
Grant Bishop – We need repeal, or a provincial challenge, to hasty and overbroad new Competition Act greenwashing rule
From: Grant BishopTo: François-Philippe Champagne, Minister of Innovation, Science and Industry of Canada, cc: Matthew Boswell, Commissioner of Competition; Arif Virani, Minister of Justice and Attorney General of Canada; provincial attorneys generalDate: September 20, 2024Re: We need repeal, or a provincial challenge, to hasty and overbroad new Competition Act greenwashing rule Since the blowback to […] David Jones – Why we need dynamic pricing for Oasis concert tickets (and other items, too)
Published in The Globe and Mail
A fortnight ago, in response to huge demand, ticket prices surged for the 1990s Britpop band Oasis’s long-awaited reunion tour across Britain and Ireland.
Dynamic pricing – the practice of allowing prices to fluctuate in response to changes in market conditions – is rarely a fan’s favourite. Just ask Wendy’s customers about the chain’s previous plans to introduce it in 2025. But step back and we’ll see that dynamic pricing – when used in the right context and appropriately implemented – fulfills an important role.
If a good or service is in short supply, allowing the price to rise can naturally identify who wants it the most, similar to an auction. It narrows the field of buyers to those…
Graph of the Week: Canada’s Declining Investment – A Decade of Missed Opportunity
Graph of the Week is a new series from the C.D. Howe Institute’s Graphic Intelligence that presents valuable and easily digestible data. Each Monday we unveil one new captivating chart or graph with interesting insights, explaining it in two-to-three sentences. Dive into the data with us.Business investment in capital other than housing – buildings and […] Underequipped: How Weak Capital Investment Hurts Canadian Prosperity and What to Do about It
Business investment in Canada has been so weak since 2015 that capital per worker is falling. A longstanding gap between investment per available worker in Canada compared to the United States and other OECD countries narrowed from the late 1990s through the early 2010s, but has since widened to a chasm. In 2024, Canadian workers […] Don Wright – Some Basic Living Standard Arithmetic for Governments
To: Canadians concerned about prosperity From: Don Wright Date: September 4, 2024Re: Some Basic Living Standard Arithmetic for Governments Governments often talk about “creating jobs,” but what they really do is choose some jobs at the expense of others. With their myriad spending, taxing and regulatory decisions, all governments try to direct job growth to different sectors […] Eichenbaum, Alexopoulos, and Kronick – Lagging Productivity not Just a Number, it’s Making us Poorer
From: Martin Eichenbaum, Michelle Alexopoulos and Jeremy M. Kronick To: Canadians concerned about prosperity Date: August 14, 2024 Re: Lagging Productivity not Just a Number, it’s Making us Poorer Since 1985, US labour productivity has grown by roughly 100 percent. In sharp contrast, labour productivity in Canada is up 40 percent. Canadian workers are now only 70 percent as […] Graph of the Week: Canadian IP Payments and Receipts
Introducing Graph of the Week, a new series from the C.D. Howe Institute’s Graphic Intelligence that presents valuable and easily digestible data. Each Monday we will unveil one new captivating chart or graph with interesting insights, explaining it in two-to-three sentences. Dive into the data with us. The gap between these two lines reflects the Canadian balance-of-payments deficit […] Eichenbaum, Alexopoulos, Kronick – Economists must convince the public that productivity isn’t just a number
Published in The Globe and Mail.
Since 1985, U.S. labour productivity has grown by roughly 100 per cent. In sharp contrast, labour productivity in Canada grew by only 40 per cent. Canadian workers are now only 70 per cent as productive as U.S. workers. And we’re not just falling behind the U.S. – the growth rate of our productivity is well below that of the U.K., Germany and France.
Economists have long been aware of our productivity malaise, but we need a broader audience. Public support can help solve the problem, and this requires showing Canadians how productivity gains improve their lives.
To see the benefits of higher productivity, consider the following example: Suppose a firm with 100 workers produces 100…
Lewis, Dupuy – Nostalgia Should Not Drive Ontario’s Economic Development Policy
From: Brian Lewis and Damian Dupuy To: Ontario Economy Observers Date: July 25, 2024 Re: Nostalgia Should Not Drive Ontario’s Economic Development Policy Despite bold promises and billions of dollars of support, Ontario manufacturing jobs remain around the same level as when Doug Ford’s Progressive Conservatives came to power. The province needs to move past the nostalgic view of […] John Lester – Rethinking How We Support R&D
To: Canadians Concerned About Innovation From: John Lester Date: July 9, 2024 Re: Rethinking How We Support R&D After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance, worries about the amount and effectiveness of R&D performed in Canada, […]