Patrick Boyle On Finance Canada is a Warning to the Rest of the World!
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Apr 8, 2026 A look at why a resource-rich, well-educated country has slid behind peers. Short takes on a decades-long productivity drag, concentrated industries, and internal trade frictions. Observations on how a housing boom turned into non-productive wealth and encouraged intergenerational divides. Notes on skilled emigration, infrastructure missteps, and the institutional strengths that could still spark reform.
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Persistent Low R&D Spending
- Canada underinvests in R&D relative to peers, widening the productivity gap.
- Business R&D as share of GDP is under half the OECD average for two decades, limiting high-productivity sector growth.
Housing Turned Into A Nonproductive Asset
- Housing became the dominant, tax-advantaged wealth vehicle, diverting capital from productive investment.
- Average home price rose ~179% (CAD $237k to $661k) since 2005, with primary-residence gains tax-free and high leverage amplifying returns.
Housing Fueled Generational Wealth Shift
- Intergenerational wealth transfer via housing deepens inequality and depresses youth prospects.
- Median senior family assets ~C$1.1M versus under-35 families ~C$159k; many first-time buyers receive large parental gifts.