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Opinion: Tariffs matter, but Canada’s economic challenges run deeper

Mar 26, 2025 - financialpost.com
The article discusses the deeper economic challenges facing Canada beyond trade disputes and tariffs. It highlights issues such as declining productivity, aging infrastructure, and diminishing competitiveness, with Canada's GDP per capita falling significantly compared to the U.S. The authors, Kathleen Polsinello and Terence Smith, emphasize the need for bold, transformative economic strategies to address chronic underinvestment and to reinvigorate investment in natural resources, infrastructure, and advanced technologies like AI. They argue for decisive action from policymakers and business leaders to modernize infrastructure, remove regulatory barriers, and pursue long-term economic policies that can secure Canada's prosperity.

The article also stresses the importance of expanding international trade and leveraging Canada's natural resources and innovation ecosystem to boost productivity and global competitiveness. It calls for a non-partisan economic task force to address these challenges, urging Canadians to support investments in critical infrastructure and advanced industries. The authors conclude that Canada's history of innovation and resource abundance positions it uniquely to succeed on the global stage, but it requires unified leadership and collective action to transform the economy and ensure a prosperous future.

Key takeaways:

  • Canada faces deeper economic challenges beyond trade disputes, including declining productivity, aging infrastructure, and diminishing competitiveness.
  • Canada's GDP per capita has significantly fallen compared to the United States, highlighting lower wages, higher housing costs, and fewer opportunities.
  • There is a need for bold, transformative economic strategies, including reinvigorating investment, expanding international trade, and scaling AI adoption.
  • Addressing these challenges requires non-partisan leadership and decisive actions that transcend politics to secure Canada's future prosperity.
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