Canada’s Economic Decline Relative to the U.S.: Causes, Key Policy Missteps & Future Strategies to Close the Gap

At one point, Canada’s GDP per capita was nearly 90% of the U.S. level, particularly in the post-WWII era (1945–1970s). However, today it has dropped to about 65–70% of U.S. GDP per capita. While both countries have grown economically, Canada has lagged behind due to a mix of policy missteps, external shocks, and structural economic weaknesses.

This analysis provides a historical breakdown of key periods, explores major policy decisions that widened the gap, and outlines strategies for Canada to regain lost economic ground.

I. When Canada and the U.S. Were Economically Closest?

• 1945–1980: Canada’s GDP per capita was 80–90% of U.S. GDP per capita.
• 1981–2000: Dropped to 70-75% due to slower growth and external shocks.
• 2000–Present: Declined further to 65-70%, driven by weak productivity growth, high taxation, and energy dependence.

II. Periods of Economic Divergence & Key Policy Missteps

🔵 1945–1970s: Canada’s Golden Years (GDP per Capita Close to U.S.)

✅ Key Strengths:

• Strong manufacturing sector, boosted by the Auto Pact (1965).
• High commodity demand post-WWII (oil, minerals, timber).
• Low government debt and business-friendly tax policies.
• Stable inflation and interest rates.

❌ Challenges & Early Policy Issues:

• The National Energy Program (NEP) (1970s) deterred foreign investment in energy.
• Slow diversification into technology and advanced manufacturing.

➡ Why the Gap Didn’t Widen Yet:

• The U.S. and Canada were both benefiting from global growth, so structural weaknesses weren’t yet exposed.

🔴 1980s: The Start of Canada’s Decline

GDP per capita dropped to ~75% of U.S.

✅ Positive Changes:

• Signed Canada-U.S. Free Trade Agreement (1989), boosting trade.
• Began fiscal consolidation to reduce deficits.

❌ Key Policy Missteps:

• High inflation (1970s-80s) forced the Bank of Canada to raise interest rates, slowing economic growth.
• GST introduction (1991): While it helped reduce the deficit, it dampened consumer spending.
• Tax & regulation burden remained high, discouraging business investment compared to the U.S.
• U.S. embraced Reaganomics (tax cuts & deregulation), making it a more attractive place for business investment.

➡ Why the Gap Widened:

• The U.S. was aggressively cutting taxes and deregulating, while Canada remained more interventionist.
• The oil price crash (1986) hit Canada’s energy-dependent economy harder.

🔴 1990s: Productivity Weakness & Missed Tech Boom

GDP per capita fell to ~70% of U.S.

✅ Positive Moves:

• NAFTA (1994) expanded trade with the U.S. and Mexico.
• Chrétien government reduced deficits and stabilized inflation.

❌ Key Policy Missteps:

• Productivity lagged due to slow adoption of new technologies compared to the U.S.
• Limited innovation incentives meant Canada missed much of the 1990s tech boom.
• U.S. became the global tech leader, while Canada remained resource-dependent.
• "Brain drain": Many talented Canadians moved to the U.S. for better wages and opportunities.

➡ Why the Gap Widened:

• The U.S. invested heavily in R&D, tech, and education, while Canada relied on traditional industries.

🔴 2000s: Overreliance on Commodities

GDP per capita fell to ~65-70% of U.S.

✅ Strengths:

• Alberta’s oil sands boom temporarily boosted growth.
• Strong banking sector avoided U.S.-style financial collapse (2008).

❌ Key Policy Missteps:

• Canada’s economy became overly reliant on oil & commodities, making it vulnerable to price swings.
• High tax burden and regulations deterred business investments.
• Weak R&D investment kept productivity low compared to the U.S.

➡ Why the Gap Widened:

• The U.S. doubled down on tech, finance, and innovation, while Canada remained stuck in resource dependency.

🔴 2010s–Present: Slow Recovery & More Economic Drag

GDP per capita remains ~67-70% of U.S.

✅ Strengths:

• Stable economy with lower national debt than the U.S.
• Strong population growth due to immigration.

❌ Key Policy Challenges:

• Slow innovation adoption: Canada lags in AI, biotech, and digital industries.
• Rising energy regulations & carbon pricing have slowed investment in natural resources.
• Higher taxes on businesses (compared to the U.S.) make it less attractive for investment.
• Canada’s recovery post-COVID was slower than the U.S.

➡ Why the Gap Widened:

• The U.S. continued to lead in high-value industries (tech, AI, finance, healthcare innovation), while Canada struggled with sluggish productivity growth.

III. How Can Canada Close the Gap? Future Strategies

To regain economic ground, Canada must focus on productivity, innovation, and economic competitiveness.

1️⃣ Tax & Business Regulation Reform

✅ Lower corporate tax rates to match or undercut U.S. rates.
✅ Reduce red tape for businesses, making Canada more attractive for investment.
✅ Expand public-private partnerships in high-growth sectors (tech, biotech, AI).

2️⃣ Investment in Innovation & Technology

✅ Expand R&D tax incentives to boost innovation.
✅ Focus on tech hubs in Toronto, Vancouver, and Montreal to compete with U.S. tech cities.
✅ Strengthen university-business partnerships for the commercialization of research.

3️⃣ Energy & Resource Policy Reform

✅ Balance environmental policies with economic competitiveness—reduce excessive regulatory barriers.
✅ Invest in clean energy tech leadership rather than just phasing out traditional energy.

4️⃣ Immigration Policy Aligned with Economic Needs

✅ Prioritize skilled immigration in high-tech sectors.
✅ Encourage foreign students in STEM fields to remain in Canada post-graduation.

5️⃣ Strengthen Trade & Global Market Access

✅ Diversify exports beyond oil & minerals—focus on tech & advanced manufacturing.
✅ Strengthen trade ties with Europe (CETA) & Asia (CPTPP) to reduce U.S. dependency.

6️⃣ Education & Workforce Development

✅ Expand STEM education and job training programs.
✅ Provide tax breaks for companies investing in employee upskilling.

🔍 Final Takeaways

🔹 Canada’s economy was once nearly on par with the U.S. but has fallen behind due to slower productivity growth, high taxation, and reliance on commodities.
🔹 Key missteps include missing the tech boom, slow innovation adoption, excessive regulation, and tax policies that make investment less attractive.
🔹 To close the gap, Canada must focus on tax reform, technology investment, R&D incentives, trade diversification, and workforce training.

💡 With bold reforms, Canada could return to an 80%+ GDP per capita level relative to the U.S. in the coming decades!

Knowledge: https://www.sfu.ca/~aheard/elections/1867-present.html

Canada's Asylum System is Being Exploited

Canada's asylum acceptance rate has soared to 82% in 2024, up from 64% in 2018, with more than 95% of claims from Iran and Turkey being approved. This is not just about "helping refugees"—it signals a deeply broken system that prioritizes speed over scrutiny.

1. The Surge in Asylum Approvals is Not a Coincidence

• Increased approvals (37,000 in 2023 vs. 14,000 in 2018) do not reflect a worsening global refugee crisis.
• Instead, this coincides with looser screening, political decisions, and an overwhelmed system.
• Why are certain countries given near-automatic approvals (Iran, Turkey) while others face more scrutiny?

This is not about protecting the most vulnerable. It’s about cutting corners.

2. The "Paper Review" System is a Recipe for Fraud

• In a real asylum system, every case should be thoroughly examined.
• But now, Canada allows some claims to be approved without a hearing, meaning minimal scrutiny for applicants from "pre-approved" countries.
• Paper reviews have only two outcomes:
  1. Acceptance
  2. A referral for a hearing (but never an outright rejection)

This means zero risk of immediate denial, encouraging bogus claims from those who know the system is rigged in their favour.

3. Backlog Manipulation: "Processing Faster" at What Cost?

• A backlog of 250,000 cases is being used as an excuse to approve claims without full hearings.
• Instead of fixing the backlog by prioritizing genuine refugees, Canada has streamlined approvals, creating a rubber-stamp asylum system.
• This is a policy choice, not a necessity.

4. Iran and Turkey: Why the 95% Acceptance Rate?

• Are people fleeing persecution? Yes, some.
• Are 95% of applicants genuine refugees? Highly doubtful.
• Turkey and Iran are authoritarian states, but why the blanket acceptance policy?
• These high approval rates create incentives for economic migrants to exploit the system.

5. A System Ripe for Abuse

• Fewer hearings = More fraud.
• Higher approval rates = More bogus claims.
• The result? Real refugees get lost in the flood of fraudulent claims.

Instead of creating a fair and rigorous system, Canada has opened the floodgates to abuse, prioritizing speed over legitimacy.

Final Verdict: Canada is Rewarding Fraud, Not Refugees

Canada’s asylum system is broken because it values political optics over genuine humanitarianism.

• Approving claims without hearings weakens credibility.
• Handing out near-automatic approvals to specific countries invites manipulation.
• Real refugees suffer while fraudulent claims clog the system.

A real solution? Restore rigorous screening, enforce balanced acceptance rates, and prioritize those facing genuine persecution—not just those from politically favoured nations.

Time to fix the system before Canada becomes a global magnet for asylum fraud.

Canada’s Wake-Up Call: A Nation on the Brink of Irrelevance

For decades, Canada has drifted further into complacency, embracing a culture of government dependency, military neglect, and political theater rather than real leadership. With Prime Minister Justin Trudeau’s latest move to engage in a reckless trade war with the United States, the cracks in Canada’s foundation are becoming impossible to ignore. This isn’t just about tariffs—it’s about a country that has consistently failed to put its own citizens first while pretending to be a world leader.

The Welfare-State Mentality: A Nation Addicted to Handouts

Since Lester Pearson and Pierre Trudeau, Canada has steadily expanded its welfare programs, fostering a population increasingly reliant on government aid rather than personal responsibility. The modern Canadian voter expects subsidies, social programs, and benefits without questioning where the money comes from. This has led to massive public debt, unsustainable spending, and a shrinking private sector burdened with ever-increasing taxes.

The result? A nation that values entitlement over hard work, dependency over self-sufficiency. This mindset is why Canadians keep electing leaders like Trudeau, who promise more free programs while ignoring the long-term consequences.

NATO & Defense: Relying on the U.S. While Offering Nothing in Return

For nearly a decade, Canada has refused to meet its NATO commitment of spending 2% of GDP on defence, despite repeated calls from allies. Instead of strengthening its military, Canada has let it deteriorate, relying on the United States to pick up the slack. When crises arise, the Trudeau government talks about “Canada’s role in global peacekeeping,” yet its military is woefully underfunded, undermanned, and underequipped.

Meanwhile, the government lectures the world on human rights, democracy, and climate change, as if it were a superpower. The truth? Canada has become a lightweight on the global stage, pretending to punch above its weight while failing to secure its own borders, military, and economic stability.

Trudeau’s Failed Leadership: Weak Borders, Economic Decline, and Global Virtue-Signaling

Since taking office, Justin Trudeau has failed at nearly every aspect of leadership:

• Northern Border Crisis: Trudeau has allowed illicit drugs, criminals, and money to flow freely into the U.S., damaging relations with Canada’s largest trading partner.

• Economic Mismanagement: Canada’s debt has skyrocketed under Trudeau, inflation has eroded wages, and businesses are fleeing due to high taxes and red tape.

• Trade War with the U.S.: Instead of prioritizing negotiations with the most critical economic partner, Trudeau escalated tensions with retaliatory tariffs, which will hurt Canadian citizens far more than Americans.

• Global Reputation Over National Interests: Trudeau continues to focus on photo ops at international summits rather than addressing the crumbling healthcare system, rising crime, or economic uncertainty at home.

Quebec’s Role in Canada’s Stagnation

For decades, Quebec has dictated federal politics, benefiting from massive financial transfers and special privileges at the expense of the rest of Canada. Liberal governments have consistently catered to Quebec’s demands, ensuring its influence remains outsized while other provinces suffer from economic neglect and policy decisions that do not serve their interests.

Canadians Keep Falling for Political Theater

One of Trudeau’s most effective strategies has been his ability to weaponize emotional politics. Whether it’s climate change, Indigenous reconciliation, or identity politics, he consistently uses distraction tactics to avoid real accountability. The media shields him from scrutiny, ensuring voters remain misinformed. Every election, Canadians are manipulated into fearing conservative alternatives, leading to a cycle of continued mismanagement and national decline.

The Harsh Reality: Is Canada Too Far Gone?

Canada has had countless opportunities to reverse course, yet each time, voters have chosen big government over fiscal responsibility, global posturing over national strength, and dependency over self-reliance. While opposition leaders like Pierre Poilievre are gaining traction, the fight against decades of ingrained socialism, media bias, and bureaucratic entrenchment will be a monumental challenge.

So the question is: Will Canadians finally wake up and demand real leadership, or will they continue sleepwalking into economic and geopolitical irrelevance?

The time for excuses is over. The time for real change is now.

Knowledge: https://www.sfu.ca/~aheard/elections/1867-present.html

South Africa's B-BBEE Act: A Case of Reverse Discrimination?

The Broad-Based Black Economic Empowerment (B-BBEE) Act, as amended, is a race-based economic policy in South Africa aimed at redressing past injustices by legally favouring black South Africans (Africans, Coloureds, and Indians) in business and employment. While its stated goal is to correct historical economic imbalances from the apartheid era, the policy, in practice, institutionalizes racial preference in a way that excludes and disadvantages white South Africans—a textbook example of reverse discrimination that would likely be deemed unconstitutional in any nation that upholds true equality under the law.

Key Problems with the B-BBEE Act

1. Systemic Racial Exclusion & Violation of Equal Protection

• The Act mandates racial quotas in ownership, management, and employment that directly disadvantage white South Africans, regardless of their individual economic status or historical involvement in apartheid.
• Businesses must sell ownership stakes to black individuals to maintain government contracts, effectively forcing wealth transfer along racial lines.
• If any country passed a law favouring whites over blacks, it would be condemned as racism—yet when it’s reversed, it’s called “empowerment.”

2. Unconstitutional Affirmative Action & Legalized Discrimination

• Affirmative action programs have been repeatedly struck down as unconstitutional in other countries for violating equal protection principles.
• In the United States, the Supreme Court has ruled against racial quotas in education and employment, recognizing them as discriminatory.
• South Africa’s Constitution (Section 9) claims to uphold equality, yet the B-BBEE Act blatantly enshrines race-based preferences into law, contradicting its own principles.

3. Forced Wealth Transfer & Economic Distortion

• The policy coerces businesses into race-based ownership transfers, prioritizing political ideology over economic efficiency.
• It has led to the rise of "fronting" (tokenism), where businesses appoint black individuals as nominal owners to comply with regulations.
• Meritocracy is destroyed when race, rather than competence, dictates opportunities.

4. Economic Damage: Investment Decline & "Brain Drain"

• Race-based economic engineering has driven skilled professionals and entrepreneurs out of South Africa, contributing to economic stagnation.
• Foreign investors are deterred by race-based restrictions, reducing capital inflows, job creation, and overall economic growth.
• The policy mainly benefits politically connected elites, not the poor.

5. The Injustice of "Corrective" Discrimination

• True justice means protecting individual rights, not punishing one racial group to benefit another.
• Rather than fostering an inclusive free market, the B-BBEE Act creates state-mandated race preferences that punish hard-working individuals based on skin colour.
• If racial discrimination was wrong in the past, it’s still wrong now—regardless of who it targets.

Final Verdict: Institutionalized Reverse Racism

The B-BBEE Act is reverse racism codified into law. It replaces one form of racial discrimination with another, violating the principles of meritocracy, fairness, and equal opportunity. It is a political tool that serves elites while harming the broader economy, all under the guise of "empowerment." If South Africa wants real economic progress, it must abandon race-based policies and embrace a system based on merit, innovation, and equal opportunity for all.

SOURCE:

https://www.bbbeecommission.co.za/wp-content/uploads/2016/09/Consolidated-B-BBEE-Act-2013.pdf

Canada’s Democracy at Risk: The Need for Legal Reforms to Combat Foreign Election Interference

Canada is witnessing an unprecedented level of foreign endorsements and media influence in its federal election. More than any previous election in modern history, foreign voices—whether through government officials, media outlets, or lobbying groups—are attempting to shape the political landscape. This unfiltered interference raises concerns about national sovereignty, electoral integrity, and democratic independence.

Unlike strong democratic nations that enforce strict anti-interference laws, Canada currently lacks clear legal protections against foreign endorsements that sway public opinion. If left unchecked, this growing trend will transform Canada into a nation where elections are dictated by foreign interests rather than Canadian voters—a scenario more commonly associated with unstable, developing nations rather than a G7 country.

The Alarming Scale of Foreign Influence in Canada’s Election

1. Unprecedented Foreign Endorsements

   • Political figures, media outlets, and foreign advocacy groups are actively endorsing or discrediting Canadian candidates.

   • Unlike in previous elections, these endorsements are widespread, well-funded, and highly coordinated.

2. Foreign Media Hits and Narrative Manipulation

   • Foreign-owned media outlets are shaping political narratives, amplifying certain candidates while undermining others.

   • Social media platforms are flooded with targeted messaging, often aligning with foreign policy interests rather than Canadian priorities.

3. Economic and Diplomatic Interference

• Some endorsements come from nations that stand to gain economically or diplomatically from a particular candidate’s victory.

• This raises questions about quid pro quo politics—are foreign governments backing candidates in hopes of policy favours?

How Foreign Endorsements Manipulate Democracy

• Public Perception Engineering: The more a foreign entity amplifies a candidate’s message, the more it shapes voter opinion—even if Canadians wouldn’t otherwise prioritize that candidate.

• Disinformation Risks: Foreign endorsements often accompany misinformation campaigns designed to mislead voters and create artificial divisions.

• Voter Manipulation: Studies show that endorsements from influential figures impact voting behaviour, particularly among undecided voters.

Canada’s Legal Loopholes Allowing Foreign Election Interference

1. No Restrictions on Foreign Endorsements

   • Unlike the United States and Australia, which prohibit foreign actors from directly influencing elections, Canada has no comprehensive restrictions on foreign endorsements.

2. Lack of Transparency Laws

   • Canada does not require full disclosure of foreign endorsements, allowing them to be covertly coordinated through back channels.

3. Digital Advertising Loopholes

• Foreign entities exploit digital platforms to target Canadian voters, often using bots, paid influencers, and disinformation tactics.

The Urgent Need for Legal Reforms

To restore Canada’s electoral sovereignty, immediate legal reforms are necessary:

1. Ban Foreign Endorsements from State-Linked Actors

   • Prohibit endorsements from foreign government officials, agencies, and state-backed media to prevent political manipulation.

2. Mandatory Disclosure of Foreign Influence

   • Any endorsement from a foreign individual or entity must be disclosed under strict transparency regulations.

3. Stronger Digital Election Protections

   • Implement regulations on foreign-funded online political ads and social media campaigns.

4. Enforce Severe Penalties for Violators

• Any Canadian candidate found coordinating with foreign entities for electoral gain should face heavy fines and disqualification.

Canada’s Sovereignty at Risk: A Warning for the Future

If foreign endorsements and media-driven election interference continue unchecked, Canada risks losing control over its own democracy. The future of our electoral system should be determined by Canadians—not foreign interests. Without immediate legal reforms, Canada risks becoming a puppet democracy, where elected officials serve international backers rather than Canadian citizens.

Canada’s electoral integrity is at stake. Parliament must act now to introduce strong, enforceable laws against foreign interference before it’s too late.

Conclusion: The Call to Action

The time for passivity is over. Canada must enforce strict legal reforms to ban foreign election endorsements, mandate transparency, and strengthen digital election protections. If we fail to act now, we risk losing control of our elections and our national sovereignty.

The choice is simple: A Canada governed by its people—or a Canada dictated by foreign interests.

🚗 Universal Road Use Fee Proposal

 

The most fair and universal solution is a mileage-based road usage fee that applies equally to all vehicles—gas, electric, or hybrid—without invasive tracking. 

1. Flat Per-Mile Tax for All Vehicles

   • Charge $0.03 per mile for all vehicles.
   • Eliminates unfair advantages for EVs while replacing gas taxes.
   • If you drive 12,000 miles/year, you pay $360 annually, regardless of vehicle type.

2. Collected via Annual Registration

   • Instead of tracking every trip, mileage is reported at annual registration renewal (like emissions tests).
   • Drivers submit odometer readings or use dealership/service center verification.

3. No Additional Gas Tax

   • Repeal state/federal gas taxes so every driver pays the same per mile.
   • This removes hidden taxes at the pump and ensures fairness.

4. Privacy-Protected & Easy to Administer

   • No GPS tracking or government surveillance.
   • States already track odometers for inspections—this just adds a tax calculation.

5. Ensures Road Maintenance Stability

   • EV growth won’t destroy road tax revenue.
   • Funds remain proportional to actual road usage.

This system is fair, simple, and ensures all drivers contribute equally—whether they drive gas, electric, or hybrid. 

🚗🚚 Universal Road Use Fee Proposal

A mileage-based tax that replaces gas taxes and ensures every driver contributes fairly.

1️⃣ Per-Mile Fee for All Vehicles (No More Gas Tax)

🔹 Passenger Vehicles (Cars, SUVs, Light Trucks) → $0.03 per mile
🔹 Light Trucks (6,000–10,000 lbs) → $0.05 per mile
🔹 Heavy Trucks (10,000+ lbs) → $0.10–$0.15 per mile (Heavier vehicles cause more road wear, so they pay more.)

🚫 Eliminates federal & state gas/diesel taxes.
✅ Ensures EVs, hybrids, and gas cars pay equally.

2️⃣ Simple & Privacy-Protected Collection System

📌 Collected through annual vehicle registration (No GPS tracking required).
📌 Mileage reporting options:

• Self-report with odometer photo.
• Certified mechanic/dealer verification.
• Fleet vehicles & commercial trucks use existing reporting systems.

3️⃣ Stable & Sustainable Road Funding

✔ Road maintenance revenue remains stable—no reliance on fuel consumption.
✔ Encourages innovation—No penalties for fuel-efficient or alternative-fuel vehicles.
✔ Prevents unfair tax burdens—Everyone pays based on road use, not fuel type.

End the Chaos: A Common-Sense Plan to Reform U.S. Asylum Laws

 

 

Asylum Reform Now: Stopping Fraud, Protecting the Vulnerable, and Securing the Border

The following approach would restore order, protect real refugees, and stop abuse of the system while keeping the U.S. compassionate but not naive. 

 Proposed amended rules for asylum seekers entering the USA:

1. Apply from Outside the U.S.

• Asylum applications should be made before entering the U.S., either from the home country (if safe) or a designated processing center in a third country.
• Exceptions: If an applicant is in immediate danger (e.g., political dissidents in an authoritarian regime), an expedited process could apply.

2. Regional Processing Centers

• The U.S. should set up secure, well-monitored processing centers in safe third countries (e.g., Mexico, and Costa Rica).
• These centers would:
  • Screen asylum claims before entry.
  • Process work permits for those awaiting decisions.
  • Prevent dangerous border crossings and discourage false claims.

3. Stricter Credibility Checks & Faster Processing

• Stronger vetting to weed out fraudulent claims (e.g., gang members posing as asylum seekers).
• Limit the decision time to 6 months max to avoid long waits.
• Those denied asylum must leave immediately, with strict penalties for false claims.

4. Safe Third Country Rule (With Reforms)

• If an asylum seeker passes through a safe country, they must apply there first.
• However, make exceptions for genuine persecution cases (e.g., dissidents who wouldn’t be safe in the transit country).

5. Limited Appeals & Deportation Agreements

• Allow only one appeal for rejected cases, decided within 60 days.
• Stronger agreements with home countries to take back rejected applicants.

6. Work & Self-Sufficiency Requirement

• While awaiting a decision, asylum seekers should be allowed to work (with vetting).
• No lifetime welfare benefits—only temporary aid if truly needed.

7. Focus on Merit & True Persecution

• Prioritize asylum for genuine political, religious, or humanitarian persecution (e.g., Hong Kongers, Christians in Iran, Yazidis).
• Deprioritize economic migrants who should apply through legal work visas instead.

This approach would restore order, protect real refugees, and stop abuse of the system while keeping the U.S. compassionate but not naive.