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Trudeau is Crippling The Canadian Economy

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Introduction to The Economic Disaster

Trudeau and his totally smart and obviously never harmful economic policies, have caused countries like Mexico to overtake Canada when it comes to trade with the United States.

This is the most recent folly in a long and tiring list of trade issues that Canada is having under the Liberal leadership.

It is so bad in fact that experts and economists from Canada and all over the world are fearing that Canada is going to suffer another decade of economic loss under Trudeau, leading to a possible fall in development status.

The reasons and failings are many to point to, but is Trudeau ready to be accountable for all his misdeeds tanking the Canadian economy?

Trudeau Makes Canada Old Trade News

Mexico has overtook Canada to become the United States’ largest trading partner for the first time ever. This embarrassing development is just the latest sign of Canada’s economic decline under Prime Minister Justin Trudeau’s leadership since 2015.

The total value of U.S. trade with Mexico in 2023 reached $798 billion, speeding past America’s trade with both Canada and China.

This increase will likely continue as factories relocate from China and elsewhere to Mexico to take advantage of tariff-free trade under the North American Free Trade Agreement. “This is not cyclical, this is new,” said Andrew Hupert, a trade expert who moved from China to Mexico.

Mexico’s economy is thriving due to global trends and pro-business policies. In the first half of 2023 alone, Mexico has attracted $13 billion in investments, mostly in the auto sector, per government data.

“The pandemic taught us that production needs to be regional rather than global,” said Claudia Esteves, head of the Mexican Association of Private Industrial Parks. “It’s practically killing globalization.” he continued.

The war in Ukraine has also prompted some European companies to shift manufacturing from Poland and other nations to Mexico, Esteves added. Naturally, demand for industrial parks in Mexico has reached “historic” levels.

In stark and completely harrowing contrast, Canada remains stuck with an anti-growth government under Trudeau’s leadership.

His administration has hampered the resource mega-projects that historically sustained Canada’s high standard of living.

Besides failing to expand the economy any further, in fact outright diminishing its value in many cases, Trudeau has actively hindered growth by hiking taxes to fund bloated and aimless spending.

Trudeau and How to Decimate a Country’s Economy

Trudeau would like you to believe that all of this is merely just a hiccup on the road to economic growth. He would like for you to believe that this is not indicative of his string of failures and missteps that are costing Candians dearly. But experts humbly disagree with this notion.

Canadian economist Samuel Hammond recently observed that it takes just two decades of stagnant GDP growth for a country to slide from an economic frontier to middle-income status.

Taking this into account, Canada is now in the midst of a lost economic decade, with declining real GDP per capita. Avoiding a second lost decade should be the priority of policymakers but the Liberals are too busy virtue signalling and trying to cover up their other atrocities.

The latest GDP data for Q4 2023 showed Canada’s real GDP per capita, a proxy for living standards, has returned to 2014 levels.

This stagnation is projected to continue, with Canada not expected to recover its pandemic losses until a projected 2027. Thereafter, the OECD predicts Canada will see the slowest real GDP per capita growth among its nearly 40 member countries through 2060.

These economic trends would amount to a “growth crisis,” as columnist Andrew Coyne describes it.

Canada under Trudeau and the Liberal leadership would possibly risk dropping in development status, as the persistent stagnation fosters zero-sum politics, polarization, radicalism, and short-term thinking.

Robust growth provides the material basis for a stable, forward-looking society, something that Trudeau pretends to understand or represent while Canadians urgently call for any policies to restore growth and avert a second lost economic decade.

At the crux of Canada’s economic troubles, lies a feeble productivity growth.

Productivity drives growth in incomes and living standards. As economist Paul Krugman noted, a country’s ability to improve its standard of living depends almost entirely on raising output per worker.

So is Trudeau working on this specific issue plaguing Canadians? You already know the answer but let us look over the facts that put Trudeau and his cronies to shame.

Canada’s productivity woes are actually worsening under Trudeau’s leadership. From 2015-2022, real labor productivity grew just 4%, versus 7.5% from 2006-2014. Peer countries saw much stronger productivity growth in the same period.

Consequently, Canada’s overall labor productivity has fallen from 85% of the U.S. level in 1970 to only 72% in 2022.

A key driver to this mess caused by the Liberals is low business investment. Capital deepening, increasing the amount of capital per worker, enables greater productivity.

Under the leadership of Canada’s beloved backwards thinking Trudeau, Canada has seen high government consumption but declining business investment outside residential construction, which still is not enough to avert or abolish the current housing crisis.

Business investment per worker has dropped 20% since 2006, partly due to lower oil and gas investment but also other factors.

Another factor is the sad decline of entrepreneurship within Canada, with new firm entry rate falling from 12% in 2006 to 7% in 2021. Canadians are so sick of Trudeau and his business blockades that they would rather invest in other countries rather than grow and branch from their own.

All of that combined with rapid population growth which should put more labor into the workforce, but rather exceeds the baffling sluggish investment and economic expansion the Liberals are ignorant to.

Immigration, Again….

Canada’s population grew over 3% in 2022-2023, on par with developing countries.

Economists warn Canada risks a “population trap” lacking infrastructure and capital to lift living standards amid high rates of immigration.

Immigration that would severely impact Canada’s economy but Tudeau, like everything else he screws up, continues to pretend ignorant to the wider issues. He was ignorant enough to the drastic economic impact high rates of immigration poses that he was willing to accept 1 million new permanent residents in 2023 before settling for a measly 400,000, according to internal government documents.

This man is so daft in all of his policies and considerations and how they affect Canadians and Canada in the long run. He is not fit to run a country, let alone a Tim Hortons.

The Trudeau government’s economic policies have done little to address twenty-first century trends of slow growth. Its strategy has emphasized extensive growth – growing the economy’s size via stimuli like high immigration and deficit spending, without raising living standards.

Immigration policy illustrates this in a crystal clear view. Mass immigration continues, increasingly skewed towards lower-skilled newcomers. This risks depressing productivity absent commensurate business investment, shifting Canada toward a more labor-intensive, lower productivity economy

Failure after Failure, But The Tunes Never Change

The Trudeau government has relied on state-centric development, juicing modest growth through endless and hollow government consumption alongside aimless and harmful population increases through immigration.

Trudeau is not doing enough to support local businesses and investments. Most of the time outright hindering any meaningful progress to be made. With the recent example being his silence on the increased costs of fuel, fertilizers and farm equipment which in turn lead to farmers protesting the costs after a sharp decline in profits.

Gathered in Rimouski, Quebec, hundreds of farmers, organized by the federation of the Union of Agricultural Producers of Bas-Saint-Laurent, voiced alarm over the country’s increasingly unsupportive agricultural policies, with dozens of tractors and trailers joining a convoy that circled the office of Minister Maïté Blanchette Vézina. The tractors later moved to the provincial Ministry of Agriculture, Fisheries and Food offices.

Protesters sought to spotlight their worsening plight and concerns for the industry’s future generations. François Pigeon, a Saint-Eugène-de-Ladrière dairy farmer, stated the goal was not to block traffic but impede it, raising awareness about agriculture’s importance and impact on daily life.

Canadians desperately need a federal government that can expand the economy, create jobs, and leverage the country’s strengths in resources, manufacturing, technology and mining.

Instead, the Trudeau government’s economic apathy, overspending and obsession with political correctness has largely driven jobs and capital away to other nations.

Canada requires sober, pragmatic leadership that treats businesses as partners rather than adversaries.

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