As we emerge from the COVID crisis, attention is shifting to the economic recovery. How quickly can Canada’s economy grow, replace lost jobs, raise incomes, and support government programs and suddenly higher public debt?
A critical growth driver is business investment. Capital spending on buildings, engineering infrastructure, machinery and equipment, and intellectual property creates demand as it occurs. Even more important, once complete, the buildings, infrastructure, machinery, R&D and software equip workers with the tools they need to produce, compete and earn higher wages.
Unhappily, GDP numbers released Tuesday by Statistics Canada reinforce a bleak message from recent C.D. Howe Institute research. We now have data on the fourth quarter of 2020, and the picture for the full year is one of extreme weakness. In real (price-adjusted) terms, investment in non-residential structures was down more than 11 per cent from 2019, while investment in machinery and equipment was down more than 16 per cent. Investment in intellectual property products, notwithstanding the spur COVID has given the digital economy, was also down, by almost four per cent.
Advertisement
Story continues below
This advertisement has not loaded yet, but your article continues below.
Article content
Meanwhile, existing capital has been wearing out. Other recent data from Statistics Canada show an outright decline in Canada’s capital stock in 2020 — the first in more than a decade. Canadian workers are starting 2021 much less well equipped to produce and compete than they were. Forecasters, including the Bank of Canada, are marking down their estimates of how fast Canada’s economy can grow in coming years. Lower productive capacity as a result of weak business investment is a major reason.
It is no surprise that investment was weak during a year when COVID curtailed so much economic activity. But 2020 reinforced two ominous trends.
Business investment in Canada has been weak for years. Weak markets and policy obstacles ended a boom in the resource sector that had buoyed investment in non-residential structures before 2015. Canada’s stocks of machinery, equipment and intellectual property products have been lagging growth in the workforce for the past five years as well.
Equally striking, and not in a good way, is that other countries have done better. In the United States, our foremost trading partner and competitor, business investment fell by only a third as much as it did in Canada in 2020. U.S. investment in both non-residential structures and machinery and equipment held up better than Canadian investment did. U.S. investment in intellectual property products actually rose.
Nor is U.S. outperformance in investment a new story. It means the average U.S. worker is increasingly better equipped than her or his Canadian counterpart. Only in non-residential structures does Canada’s more resource-oriented economy give us an edge. For every dollar of that type of new capital the average U.S. worker enjoyed in 2020, the average Canadian worker enjoyed 1.33 cents. But in machinery and equipment, U.S. workers have a bigger edge: for every dollar of new capital the average U.S. worker enjoyed in 2020, the average Canadian worker enjoyed only 41 cents. And in intellectual property products — the R&D and software so central to competitiveness in the digital era — the gap is a chasm. For every dollar of new intellectual property the average U.S. worker enjoyed in 2020, the average Canadian worker got a paltry 24 cents.
Advertisement
Story continues below
This advertisement has not loaded yet, but your article continues below.
Article content
What these numbers tell us is that the U.S. is on its way to a faster pandemic recovery than Canada, and that its growth from then on will be more robust.
It does not have to be this way. Investment in Canada was much stronger during the 2000s and early in the 2010s. Capital per worker rose, and the gap between investment per worker in Canada and in the United States and other countries narrowed. More-competitive taxes, less competition for saving from deficit-ridden governments, and more efficient and stable regulation all helped improve businesses’ willingness to spend on capital. Since then, however, businesses have found Canada a less congenial place to invest.
The upshot is that Canadian workers are not getting the tools they need to prosper and compete. Improving that situation should be a top priority for the upcoming federal budget and for governments at all levels.
William Robson is president and CEO of the C.D. Howe Institute, where Miles Wu is a research assistant.
Share this article in your social network
In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.
Top Stories Newsletter
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Thanks for signing up!
A welcome email is on its way. If you don’t see it please check your junk folder.
The next issue of Top Stories Newsletter will soon be in your inbox.
We encountered an issue signing you up. Please try again
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.