The Canadian Economy Isn't What It's Looking Like

Canada. The north most country of the two American continents. Now, what's the first thing that comes to your mind when you are asked about Canadian economy? Pretty sure you will say, it is on par or very close with its neighbor, USA. Which is true to some extent. But the Canadian economy is actually facing a downward progression. And there are multiple reasons to this. Reason why many people don't actually see it coming is because how well managed the economy is. And that the people of Canada actually have a good GDP and good living standard. Which is all good. But the downward progression I said earlier, is slowly going to hurt the economy unless it's been worked on, seriously.

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I've already mentioned there are various reasons contributing to the fact of my argument. First of all it is safe to say that the average Canadian is less productive than the average American. They add slightly less value to their economy per hour than that of the Americans. These are shown in various studies. But there is a but to this study. There is no Canadian equivalent to USA's wall street or silicone valley. Places like these add tremendous value to the total American economy. Which in turn pushes up the numbers of the average income or production on the country.

This is a very similar story to our very own Bangladesh where the GDP says we are a developing country but people still struggle to put food on the table. Another reason is that the USA is just a better place to work at. For the same qualification a man can get a higher paid job in USA than Canada. And also pay less tax in the process. A good proportion of people actually shift to USA for this sole reason. Consider two friends who have similar businesses in each country. They both need funding. Now the friend who's company is in USA is more likely to get the funding faster because there's just too much liquid capital floating around.

People around the globe consider USA as the best place for investing their money. Part because the US dollar is the international currency and part because the American economy is far more productive and the market is very business friendly. This isn't the case in Canada. So building a business in Canada is actually harder. No matter how less competition there is. One other reason can be the prices of real estate. Due to Canada's geographical position, all the major cities and industrial land in Canada is mostly near the southern border of the country. While the north remains relatively unusable throughout the year. But the Canadian economy is bigger than the usable land they have. This is why the prices of real estate is very high in Canada. Simply because there is a lot of demand. This is also a reason why Canadians choose to move to USA instead of staying in Canada. Because when you have to pay more for the rent of your building or other equipment, there's only so much capital left for you to actually invest in the workers. This is also why Canadian businesses are prone to failure or very slow growth.

All the reasons I said above, are very thoughtful factors to the people of Canada and they actually move to USA. About 4 times more is the number of people who leave the country than the people who enter it. This is causing Canada a shortage of brains, or talent or manpower or whatever word you are comfortable. And if these things go on, soon the big Canadian economy will fail. But currently it is run by a sincere democratic government. So let's hope for the best.