Is there anything more frustrating than some court economist declaring that we face serious economic problems but the causes are just a bewildering puzzle that largely defy explanation? Just for starters, Tiff need look no further than the current federal government’s open hostility towards investors.
At the conference, Macklem said the central bank expected productivity growth to pick up coming out of the pandemic as companies found the workers they wanted to hire and the supply chain started to normalize.
“It hasn’t happened,” he said. “That’s why we made such a stark statement.”
The solutions are apparent — more investment in machinery, equipment, information technology, etc. — but Macklem said the tougher question is why that isn’t happening.
“There are some puzzles there,” he said. “We have all the ingredients; we have got to cut through obstacles.”
“Attitude is the paintbrush with which we colour our lives”
I’m kinda surprised he didn’t blame Harper.
The comments say it all.
Sheesh.
Our Dear Leaders are fools and bandits.
We are missing a wonderful export opportunity.
Guaranteed an Idiot,buy one now.
And those that don’t sell can be broken down to their body parts..
Buy an unused brain.
Arms that have never worked.
Hands that have learned no skill.
A spine that has never been used.
Eyes that cannot see.
The tongue and jaws will have to be scrapped of course,as lies are the default program.
Yep, the biggest cause of reduced investment in Canada is government risk. The Trudeau Liberal-NDP federal government (and several provincial governments) have made Canada a higher risk jurisdiction for business. The rules around taxes, climate change rules, fees,regulations, cancelling permits and other government interference are constantly changing and always more burdensome. Then there’s constant, expensive litigation from various activist groups. The only corporations that are making signifigant investments are ones that are given billions of taxpayer money – battery plants/auto plants in Ontario and anything in Quebec, of course.
Corporations like Kinder Morgan would have built the transmountain pipeline expansion at their own expense but the government(s) and activists made that impossible. So, instead, taxpayers paid billions for the massive cost overruns and delays. Pretty much the poster child for what’s gone wrong in Canada.
Since Justin Trudeau took office, our family has 100% divested of anything that might benefit other Canadians and doesn’t put food in our mouths. We will probably never invest in real estate ever again unless there’s a sea change in rental rules. Canadians don’t deserve to eat from our table. They can eat at Justin’s table.
As an innovator, why would anyone want to invest in canada when the government says we are going to take more of your capital gains, because the government knows better how to invest that money?
If you are starting a new business, would you chose to invest in a country that targets capital gains at 17.5% higher than their nearest neighbour, and has higher marginal tax rates? Why would anyone invest in a country that is actively hostile to growth? that has a carbon tax that needlessly increases costs?
Completely blind to the fact that canuckistan is complete communist today so no private sector investment is taking place. Real estate speculation is on going because of inflation expectations but little else. Maybe the problem is the regime in ottawa perhaps?
Optimism vs cynicism.
The government is out to kill any bit of business optimism. Cynicism says take whatever government handout you can and be ready to bail.
This is the quintessential government mindset. This man thinks businesses have been sitting on the capital investment sidelines and that all they need is a little pep talk from him to get back into the swing of things. It just goes to show how you can be educated and still be an idiot.
It’s obvious to me from a personal standpoint the Canadian economy is wobbling and is collapsing under the weight of this large, activist government borrowing and spending us into debt slavery.
From the Article..
“…you were investing in new digital technology to figure out how to serve your customers digitally … the manufacturing sector rapidly pivoted to create personal protective equipment…”
Wow – using that as inspiration, demonstrates clearly how EMPTY that cupboard is.
It’s like the Vaxx Deaths – No one knows why folks are suddenly dying….
The Gov of Bank of Canada is in that group…ignoring the NAZI’s & their CONSTANT pissing away of the country’s purse while raising taxes to astronomical heights.
explanation for lots and lots of stuff in lots of areas is in Canaduh, the prime minister is EXTREMELY powerful. edicts from on high, piyss all vetting appointments, firing people for not doing their zhob *his* convenient way (isnt that right MS Jody Wilson Raybold).
unfortunately for all of us, the one currently in that area of parliament floor plan is a fcuking dunce, add incompetent, and corrupt and divisive and a grotesque spendthrift did l leave anything out?
Well, a lot of people shifted their investment strategy at the start of JT’s petulant rule to inflation proof their potfolios. So, moving away from financial instruments and more towards a capital hold. If you own property, and inflation goes nuts, your property is now worth more, and you don’t need to care so much. If you own shares and collect dividends, and inflation goes nuts, your shares go up as do the dividend payments, and you don’t need to worry so much. Inflation proof.
Note that governments are already inflation proof. They can print all the money they want and since they tax income and profits, as these are now in inflated dollars, they just collect more. No consequences.
However, people who buy and hold property are avoiding the transaction taxes. Now, how to get a hold of that money? You need to raise the capital gains inclusion rate. So now, you are no longer inflation proof. In fact, people who inflation proofed their portfolios are going to be paying taxes on inflation that the government caused in the first place.
Of course, the people who truely get screwed are prudent people who invested a long time ago and held property inside intact families. Don’t ever think the kerfuffle over trusts wasn’t intended to go hand in hand with this policy change as well. Blind trusts would have avoided this issue as property inside trusts would not be transacted and thus never incurrs capital gains. Now, that is largely all written down somewhere so they can get at it.
Remember the Garden Gnome Barbie yittering away about generational wealth? If you live a long time, you are going to end up with stuff. If you don’t sell that stuff you never pay tax on the inflation. Sure there are some exemptions for some classes of property and types of owners, but this will pass as well.
At the end of the day, all tax is coercive theft under the threat of violence. They have to take from people or they can’t snuggle in their nests lined with comfy fur.
Another quick hit of cynicism: the WEF and the own nothing thing? Yeah, if you are renting everything using a digital currency and own nothing, then you are incapable of formulating a strategy to minimise paying transaction taxes. You quite literally cannot hide. You can only consume goods and services and so each transaction is recorded, available for inspection, and taxable.
Grown your own food for your own consumption? How can a government tax that? Have to make sure you don’t own property or else we might miss some revenue…
“Grown your own food for your own consumption?”
How much food can you grow in a 15 minute city?
Time to start building victory gardens again?
Of course, now we’ll have to call them “defeat gardens”.
As a central Banker in the business of manipulating the fiat currency money supply and interest rates simultaneously creating while pretending to manage inflation, he is a political animal pretending to make a sow’s ear into a silk purse within a corrupt fascist regime that is fiscally incontinent, culturally Marxist and bent on theocratically green de-industrialization.
Let’s remember that ALL of the government spending has been powered, not by revenue, but borrowing debt and that the STIFF Macklem was part of that borrowing. All of the government’s debt was created by selling bonds on the open market, and having them bought back by the Bank of Canada which hides the debt on their balance sheet (which cannot, by law, be audited – a nice red hole). So it is extremely hypocritical of the STIFF to be acting as if none of this was his fault. If it were not for the cozy conspiracy between the Liberals and the STIFF, we would not be in the mess that we are economically. It is not the whole problem, but it is a large part left over from the LIberal/NDP COVID rules of crap.
Stick it, STIFF!
I hate to break it to you. The B of C is not Canadian, it is privately run, not by the government. The employees are not eligible for government pensions. The Gov’t does their bidding. They only put on a show of being part of the government. The pensions are the giveaway clue. Same goes for the B of E in the UK and the Fed in the USA.
So, no, none of them are working for us, neither is the government. Reconfigure your paradigm.
The Bank is officially listed as a Crown corporation.
Someone give that man a mirror
What a maroon!!
Mailed it!
I dropped a deuce this morning with more economic smarts then Tiff.
Decades ago I worked at a private think tank in Ottawa. Both the Bank of Canada and the Department of Finance would second a senior staffer with us each year. And later on as a professor of economics I taught and got to know fairly well a nephew of the governor of the Bank of Canada. Both experiences taught me that the finance department and the Bank are tied at the hip. Each week, for example, the minister and DMs would have a group brown bag lunch and talk policy. The two institutions coordinate policy closely.
Especially with the corrupt Trudeau government, the Bank does to Trudeau’s PMO’s bidding. The Bank is NOT independent. I have this feeling that last week’s bank rate cut was done at the behest of Trudeau’s PMO. As we know Trudeau is functionally illiterate as to fiscal and monetary economic policy. He has an advisor pulling the strings, obviously very badly as things are turning out.