We have yet to see the damage done to corporate balance sheets. And many consumers will constrain their spending
Our puppy Winnie died last week. If I was a betting man, I would have said Winnie would have lived to the ripe old age of 12 years old, which is the average life expectancy for a bichon frise. That, however, didn’t come to pass. Winnie was mischievous and playful, and in the end that…
The oil price crash of recent weeks has triggered a wave of huge exploration and production capital expenditure cuts
Lack of appetite to invest in the energy sector is leading the world into a supply crunch, says the International Energy Agency (IEA) in its recently unveiled World Energy Investment (WEI) 2020 report. The COVID-19 pandemic is having widespread and often dramatic effects on investments in the energy sector. At the start of the year,…
New Canadian rules shift all the burden and risks to consumers, and may push away investors
By Daniel Duarte Research associate Frontier Centre for Public Policy Canadian regulators are putting a crosshair on exchanges that hold cryptocurrencies for their clients. This business model, also called a custodial or centralized exchange, is prevalent all over the world but is headed for extinction in Canada, setting back the nascent financial technology (fintech) industry.…
Increasing the federal tax would be anti-investment, anti-entrepreneurship, anti-innovation and anti-green
By Niels Veldhuis and Jake Fuss The Fraser Institute At a time when the country faces momentous economic challenges, it’s hard to think of a more damaging policy than a capital gains tax hike. Yet rumours persist that prior to the COVID-19 crisis and economic downturn, that’s exactly what the federal government planned to do.…
We need to fundamentally change how capitalism works, in part by recognizing intangible assets like human and natural capital
The COVID-19 crisis is less than a month old and as necessary steps are taken to mitigate the pandemic, another larger and much more dangerous crisis is looming. Should the medical shutdown extend into the early summer, what might the economic consequences be? The answer is a lot of short-term pain with a distant possibility…
We need tax reforms and other initiatives that will help spur entrepreneurial spirit and encourage investment
Canada is gradually losing its competitiveness – but it can be regained. According to the International Institute for Management Development (IMD), a graduate business school and research centre, we’re down three spots from 2018 to 13th. Canada is now ranked below the United States and Switzerland, as well as other energy-dominated nations such as Norway,…
There’s been a significant drop in investment across 10 of the 15 major sectors of the Canadian economy, and the federal government is to blame
By Niels Veldhuis and Ashley Stedman The Fraser Institute Canada has massive investment potential. We have an abundance of natural resources, one of the most highly-educated populations in the world, and reside next to the world’s most successful economy. We’re also among the freest countries in the world, with freedom of religion, assembly, movement and…
Alberta’s economy needs a break after five brutal years since oil prices fell, driving our economy into an agonizing period of stasis
We’re told 2020 could be the year Alberta’s economy turns the corner. So, if we do get some economic breathing room, what are we going to do with it? Alberta’s economy is ready for a break. It has been five brutal years since oil prices fell, driving our economy into a long and agonizing period…
The next two years will probably bring feeble increases in GDP, in line with 2019’s uninspiring performance. Job creation is likely to decelerate
As the clock winds down on 2019, it’s time to ponder what the coming year may have in store for the Canadian economy. To provide some context, 2019 hasn’t been a great year for the economy, with inflation-adjusted gross domestic product (GDP) expanding by around 1.6 per cent. This was less than growth in both…
Centralization undermines bottom-up co-ordination already underway between the provinces and territories
Advocates for centralized financial regulation have met their match in Canada. The nation is proof that competition between intranational jurisdictions can foster diverse, prosperous capital markets. In the research paper, The Federal Takeover of Canada’s Capital Markets, we argue the decades-long push for a national securities regulator is a solution in search of a problem.…