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steve_adams_86yesterday at 4:24 PM1 replyview on HN

> So, the reason you can buy motors and robotics components from Poland and not Canada is because Poland has lower costs

I hear you, and I partially agree. What I worry is that this made more sense ten or twenty years ago, though.

Living in Canada for 40 years, I'm no longer confident that we can continue using economic levers to allow ourselves to output less and buy more from poorer countries. We're stagnating, and the numbers are clear and directional.

We are not a very productive country compared to a younger version of ourselves, and our productivity only falls. Our most recent GDP increases belie population increases that outstripped wealth creation, leading to decreases in GDP per capita. We're growing and yet doing less.

At this rate we will need to be more resourceful, and our relative wages will continue to fall. We should be prepared and capable in all manners of wealth creation, industrial and otherwise.

Our government has stated it will do things like focus on tax competitiveness, internal trade barriers, and AI investment. To me this is depressing as hell. It's nowhere near the fighting spirit we need to make real progress. And frankly, what is AI investment? What the hell is Canada going to do with AI? We have some decent schools and interesting companies, but our government has no business speaking about the matter as an economic opportunity. We may lead the G7 in terms of research outputs here, but our spending plans on AI-related infrastructure and policy are a rounding error on singular US tech firms' balance sheets. We need to be serious. The gap between rhetoric and realistic outcomes is so absurd as to seem irresponsible.

Canadians are getting poorer quickly and at this rate we will eventually have those lower costs, but no trajectory leading us to developing better industrial and high tech manufacturing. We should have been finding ways to leverage our higher cost labour force for advanced manufacturing 20–30 years ago. Now we will have to leverage our middle-cost labour for barely-competitive products in industries with far more competition.

So I agree completely 15–25 years ago, but today I believe Canada's not doing so well, those costs will collapse, and we're going to wish we got ahead of this.


Replies

rayineryesterday at 5:58 PM

FWIW, my cousin lives in Canada and feels similarly to you. He structured his business deliberately around maximizing his exposure to the U.S. economy and minimizing his exposure to the Canadian economy. He tries to work for American clients, getting paid in American dollars.