Dramatic drop in capital expenditures threatens Canada’s prosperity

Capital investment, particularly in machinery and equipment and intellectual property assets, is the major source of productivity growth and higher standards of living in developed countries.

Dramatic drop in capital expenditures threatens Canada’s prosperityThe federal government’s recent approval of the Trans Mountain pipeline expansion is a welcome sign. It shows that the Liberal government recognizes Canada’s deteriorating investment environment, particularly in the upstream oil and gas sector (essentially, exploration and production). Unfortunately, the government has provided less evidence that it acknowledges the competitiveness problem plaguing a much broader…

Canada’s upstream oil and gas sector is in intensive care

The economic damage to the energy industry is due largely to government regulatory and tax policies

Canada’s upstream oil and gas sector is in intensive careBy Steven Globerman and Joel Emes The Fraser Institute Canadian oil and gas companies face major problems, in great part due to government policy. Legal restrictions on the expansion of pipeline capacity have restricted exports of oil, shrinking profit margins. The subsequent price decline for Western Canada Select oil spurred former Alberta premier Rachel Notley…

Federal drug-pricing plan threatens access to new medicines

There’s no escaping the fact that discovering, developing and testing new drugs costs a lot of money

Federal drug-pricing plan threatens access to new medicinesBy Bacchus Barua and Steven Globerman The Fraser Institute It seems quite clear that the current Liberal administration wants the federal government to become the public insurer for prescription drugs, in part to contain drug costs. It’s a wrongheaded plan. In 2017, the government proposed changes to the way it limits drug prices in Canada.…

Despite government subsidies, Canadian innovation wanes

Burdensome regulation, limited competition and unfavourable taxes hold Canadian companies back

Studies show that innovation is the driving force behind long-run increases in incomes in developed countries. But Canada is falling behind. The implementation and adoption of new methods of producing goods and services, along with the introduction and use of new products and new ways of organizing businesses, remain critical to improving living standards. Canada’s…

Canada’s free ride on U.S. drug development may end soon

A shift in U.S. drug pricing could cut pharmaceutical profits, meaning less money for research and development

Canada’s free ride on U.S. drug development may end soonBy Steven Globerman and Bacchus Barua The Fraser Institute In October, the administration of U.S. President Donald Trump outlined a plan that, if implemented, would substantially lower the amount the U.S. government will pay drug-makers for certain pharmaceuticals covered by its Medicare plan. Though limited in scope, Trump’s changes are a clear step toward controlling…

Wake up Canada, you have a business investment crisis

There’s been no growth in years in the corporate assets that help make companies more efficient and profitable

Wake up Canada, you have a business investment crisisCapital investment is the lifeblood of economic growth and, therefore, of higher living standards. So the collapse of business investment growth in Canada in recent years is cause for alarm. Increased capital, both tangible (machinery, equipment) and intangible (software, for example), boosts the productivity of workers and enables organizations to produce new products and implement…

The Canadian economy is at the precipice

From uncertain trade talks to lack of affordable housing to rising interest rates to government debt, the warning signs are rising

The Canadian economy is at the precipiceAny projection of the Canadian economy’s trajectory depends heavily upon one’s outlook for the ongoing North American Free Trade Agreement (NAFTA) negotiations. If the United States and Canada renew NAFTA, the outlook for Canada’s economy will obviously improve relative to the current state of uncertainty. Conversely, a collapse of bilateral negotiations, and imposition of tariffs…

Canada’s trade hurdle is all about supply management

The federal government has not explicitly stated that supply management is non-negotiable

Canada’s trade hurdle is all about supply managementBy Steven Globerman and Gary Hufbauer The Fraser Institute As North American Free Trade Agreement (NAFTA) talks continue, much remains undecided. The United States and Mexico have already reached an agreement in principle on a new free-trade arrangement. But in light of Trump’s complaints about Canadian dairy tariffs, the highest hurdle for Canada will be…

Protectionism on the rise as NAFTA talks stall

Against the backdrop of an increasingly fraught political relationship between the U.S. and Mexico, what should Canada do?

Protectionism on the rise as NAFTA talks stallThe contentious (and sometimes very public) North American Free Trade Agreement negotiations between the U.S., Canada and Mexico likely got more complicated with the recent election of a new president of Mexico. While Andres Manuel Lopez Obrador (known as AMLO) says he wants a successful outcome to the NAFTA talks, he’s an outspoken critic of…

Stemming the demographic tide on entrepreneurship in the U.K.

Providing tax relief, eliminating red tape and building entrepreneurial skills will help business startups

Stemming the demographic tide on entrepreneurship in the U.K.By Steven Globerman and Jason Clemens The Fraser Institute Entrepreneurship is widely acknowledged as the basis for innovation, technological advancement and economic progress – and subsequently, a driving force for improved living standards. Yet there’s little discussion, let alone action, in the United Kingdom to stem the adverse effects of demographic change on entrepreneurship, specifically…