We are in an economic battle whether we like it or not
America is experiencing a surge in economic confidence. The small business optimism index is at its highest level since the 1980s.
The DOW is nearing 20K, with investors – particularly in manufacturing and infrastructure – feeling confident about the economy.
This is all due to an emotional perception, and it shows how something intangible – a feeling of confidence and optimism – can lead to something tangible, in this case a boost in economic activity. Investors are anticipating pro-business and pro-jobs policies, and they are reacting by increasing business investment.
This rising optimism in the United States poses a huge risk for Canada.
The reason is simple: It is easy for a company to move from Canada to the United States or vice-versa. When companies leave – jobs leave. And investment can move even quicker.
Because of this, Canada is in an economic competition with the United States at every moment of every day. Whether our leaders like it or not, that’s the reality.
And when you look at the policy differences between the incoming US administration, and the direction Canada is going, it doesn’t look good.
Here’s a short comparison:
- Fewer regulations
- Tax breaks for exports
- Business tax cuts
- More regulations
- Carbon tax
It’s quite simple: If you were a business, what country looks more promising for future growth?
Is it any wonder that doubts about the economy are rising in Canada, while Americans seem to be growing more confident?
In fact, consumer confidence in Canada hit a 20 year low last year. From 2015 to 2016, the amount of Canadians who rated the economy as “good” fell from 65% to 36%.
That’s a massive decline.
Our leaders have failed to put in place policies to create big economic growth. They have failed to empower individual Canadians and businesses. Instead they are shackling our potential with new rules and regulations and costs that hold us back. Instead of trusting us, they seek more and more control.
It’s not working.
Canadians can sense it, and confidence is falling.
A dangerous combination
Though it is never ideal, Canada can withstand lower confidence if the US is also struggling.
But if Americans start to feel more confident at the same time as our economy slows, we will face a massive brain drain. Businesses and talent will flee across the border, seeking more opportunity in the United States.
And all of it just because our government puts some foolish rules on a piece of paper and holds our nation and our people back.
Wake Up Canada: Big Government = Brain Drain
We must act now. We must cancel the carbon tax, cut regulations, and boost domestic demand. We must shrink the amount of money being taken out of our pockets and funneled to the government, and keep it in the hands of those who earned it in the first place.
We need to act swiftly to prevent a massive brain drain that could hold us back for years, or even decades to come.
The stakes are too high to simply hope for the best.