Canada finds itself in the throes of a scarcity crisis that threatens the very fabric of our socioeconomic and cultural tapestry. Plunging housing affordability, declining health-care capacity, surging infrastructure costs, and an economy that has stagnated on a per-person basis are not one-off challenges, but alarming indicators of a country teetering on decline. It is stirring a raucous national dialogue about the economy, and the paths ahead for our future.
Earlier this month, The Globe and Mail columnist Andrew Coyne laid out a sobering picture worth repeating: Canada is no longer one of the world’s wealthiest countries. Making the case that the economy has experienced a lost decade, it cited alarming facts, including that real GDP per capita—a measure of national income per person—retreated to levels last seen nine years ago. More alarming is the projection by the OECD that Canada will face the slowest per-person growth of its 38 members through 2060.
Bloomberg columnist Tyler Cowen refuted these concerns on Wednesday, pointing to growth in overall GDP and median incomes and making a compelling case for YIMBY policies to fix skyrocketing housing costs. He implied that Canadians should accept that we can’t produce the attractive jobs or industries that power growth like Americans can. Cowen argued that America will increase its relative lead “no matter what Canada does,” and we should be grateful for the benefits of American innovation. Hogwash.
Cowen’s idea of standard economic performance for Canada belies a generation of underperformance that we’ve accepted as normal. Once standing as the world’s sixth wealthiest country in 1981, Canada now ranks below the OECD median, outpaced by now wealthier peers. The country’s productivity growth, a measure that typically signifies fewer hours of work for equivalent or better income, ranked us as the second lowest over the same period. To bring matters home, in 1990, the median inflation-adjusted income for a single earner aged 25-54 in Toronto was $54,310. In 2023, it was $54,643, an increase of less than 1 percent in 34 years. Meanwhile, the inflation-adjusted costs of homeownership and rent have more than doubled. These facts point to the painful reality of our “zero-sum” economy, where one person’s gain spells another’s loss, a path fraught with potentially severe consequences if not rectified.
A generation of growth without growth
Nowhere is the shift to a zero-sum economy more acutely felt than in Canada’s housing market, where the fundamental dreams of homeownership and the possibility of starting a family have slipped beyond the grasp of most. Skyrocketing prices and soaring rents have entrenched a chasm between the property-owning class and those left floundering in their wake. In housing, older Canadians have effectively cannibalized the future wealth and prospects of the young, hoarding opportunities to maintain their own standard of living at their children’s expense. This compounds the myriad challenges already awaiting the next generation, including the weight of high public debt, aging infrastructure, the financial strain of supporting an increasingly elderly population, and the imperative to address climate change.
The crisis has been dramatically worsened by a constellation of policy blunders. Beyond a mismanaged temporary immigration system, a labyrinth of broken housing policies—marked by draconian land use restrictions, punitive taxation, and byzantine approval processes—is crippling our economy rather than buoying it. These misguided policies exacerbate the housing shortfall while applying intolerable pressure on our infrastructure. All of this occurs within a national context starkly devoid of the requisite economic growth to underpin or broaden the capacity of our systems.
A generation is now coming of age having only experienced an illusion of growth but never the real thing. Canadian cities are bustling with construction, governments are rolling out ambitious (and expensive) infrastructure projects, and housing-rich Canadians have experienced unprecedented gains in net worth that ultimately mask stagnation. This phenomenon, akin to “growth without growth,” reveals a troubling reality: Canada’s economy, propped up by population increases, is not translating into improved living standards for its citizens. This vicious cycle of policy failure and economic stagnation threatens to rip through the threads of Canada’s national identity.
Prolonged scarcity is dangerous territory
Growth is more than just a statistic. It signifies the potential for material well-being to improve across the board, fostering a climate of social trust in business, government, and community. Growth is the bedrock of win-win economic outcomes, where the general condition improves for the majority. Growth raises government capacity by increasing revenues per person without raising taxes. Growth raises capital for business investment without harming consumers. Growth creates competition for people, who benefit from higher wages and greater opportunities. Fundamentally, growth is the objective of optimistic cultures. But, when growth falters, as it has markedly done in Canada, it shifts societal attitudes towards a hoarding mentality. If allowed to fester, zero-sum thinking will erode the Canadian social contract, harm generosity, undermine faith in fairness, encourage anti-social activity (such as rent-seeking and corruption), and could lead Canada to a far uglier place.
The dangers of prolonged economic hardship are not unknown. Recent history offers stark lessons in the form of the Great Depression and post-First World War Weimar Germany, where scarcity led not only to material deprivation but to societal fractures that culminated in one of humanity’s ugliest genocides. While one should not sensationalize, prolonged periods of economic hardship create fertile soil for populists and extremists who capitalize on the pain of communities turned inward; scapegoating outsiders and succumbing to protectionism and nativism. Ugly politics supports ugly policies, which supports ugly politics, becoming a self-reinforcing cycle that is incredibly difficult to stop. Canada, despite its modern advancements, is not shielded from these forces and is not the only liberal democracy facing them.
This scarcity mindset has already led to an unsettling rise in nativism and xenophobia, with reported hate crimes more than doubling since 2015. Immigrants, once celebrated as the lifeblood of our economy, are increasingly blamed for our problems despite the reality that many have been exploited and offered false promises of achieving the Canadian Dream. Additionally, there’s growing intolerance towards marginalized communities, including the LGBTQ+ community, rising antisemitism, and a concerning number of Canadians adopting beliefs in conspiracy theories. These trends signal a decline in open-mindedness and serve as a potential harbinger for the adoption of fringe political ideologies and inward-looking perspectives in the future.
Shoppers walk past a boarded-up storefront in downtown Montreal, Dec. 19, 2023. Christinne Muschi/The Canadian Press.
Toward an abundance economy
Despite the current challenges, it is essential to remember that Canada remains an exceedingly wealthy nation, blessed with abundant natural resources, significant capital, strong trading relationships, and a highly educated population that is deeply integrated into the global talent pool. This wealth underscores the shock of our present stagnation, which derives not from external forces but the consequences of our own bad choices.
Zero-sum attitudes now riddle our political and economic discourse and fundamentally contradict the tenets of liberal democratic capitalism in Canada, which has historically championed a positive-sum worldview. A blueprint for Canadian prosperity is there should we choose to adopt it: it requires the melding of political and economic freedoms with security, safety, and opportunity, all underpinned by robust property rights, a welfare state that uplifts without stifling, and a government that facilitates rather than dictates.
The antidote to our challenges is to embrace an “abundance” mindset. This implies a political priority to ensure that the essentials for robust social health—such as housing, energy, health care, and transportation—are plentiful and give people options. Systemic reforms must address the housing crisis head-on, significantly boost productivity, and ensure that the basics—crucial for a high-quality life—are within everyone’s reach.
Achieving these outcomes demands leadership and bold action, including the possibility of the federal government devolving taxation powers to provinces in exchange for reforms. Such reforms should aim to eliminate interprovincial trade barriers, clarify jurisdictions, centralize regulatory frameworks, boost competition in Canada’s private sector, revamp land use and municipal governance, and reform the tax code. Furthermore, there’s an urgent need to overhaul public infrastructure procurement and construction practices, where poor state capacity has unnecessarily inflated the cost of building social and physical infrastructure. The challenge we face is not the magnitude of government expenditure but the extent of its overcomplication, overreach, and waste.
By weaving together the principles of liberal democracy with an ethos of abundance, Canada has the opportunity to rejuvenate its economy and reforge a path toward widespread prosperity. Crucially, immediate action is necessary to avert the onset of a negative feedback loop, where economic, social, political, and cultural downturns become intertwined and self-perpetuating. Canada’s potential future is beautiful, contingent on our collective desire and resolve to break out of this zero-sum economy threatening to hold us back. This future requires a collective commitment to dismantling systemic barriers that impede progress. Canada’s brighter tomorrow hinges on our willingness to reimagine and rebuild—a nation where success is common, prosperity is shared, diversity is celebrated, and everyone can thrive.
VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.
Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.
The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.
“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.
“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”
Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.
The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.
The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.
Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.
More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.
Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.
“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.
Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.
“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.
Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.
Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.
Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”
“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.
This report by The Canadian Press was first published Sept. 18, 2024.
FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.
Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?
Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.
Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.
Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.
Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?
Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.
Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.
Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.
Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?
Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.
Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.
Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.
This report by The Canadian Press was first published Sept. 18, 2024.
ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.
The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.
He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.
The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.
Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”
The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.
Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.
This report by The Canadian Press was first published Sept. 18, 2024.
