Building a strong and vibrant economy is a little like going to the gym where you have to work at getting fit. And a couple new reports suggest Canada could do with a workout regime.
They are authored by the Fraser Institute which look at Canada’s ability to innovate as well as our standing in the world in terms of economic freedom. On the latter – economic freedom – we have fallen out of the Top 10, now standing #14 in the world. Places like New Zealand, Denmark and Georgia outpace us on property rights, sound monetary policy and the ability to trade.
Simultaneously, the Institute released a report on competitiveness which shows declining investment, productivity, business start-ups and overall economic growth.
Ironically, this can be cyclical. When we start to lag, we tend to ask government for more rules to prevent more competitive forces from pushing us aside. But, more government action leads to more restrictions which reduce the freedoms needed to actually succeed. And the answer may lie in stepping up our own games rather than trying to slow up the competition.