(first published in the Niagara Independent)

A number of recent news stories, combined with some things I have heard from several business owners, has all led to the same conclusion – Canada is on a very problematic path at present. The stories from business owners are interesting but disturbing. One of my small- to medium-sized (SME) business owner colleagues recently noted that she had spoken with another SME business owner who said she was now working about half the time from her cottage. What this means is that the business owner has basically decided that any energy she would spend on growing her business, hiring more employees, working harder to increase sales and expand markets just isn’t really worth it right now. Considering the very discouraging business climate in Canada currently, and the fact that working harder just means you pay a ridiculous amount more in taxes, it’s pretty hard to blame this woman for choosing to prioritize lifestyle over business ambitions. 

Another story involved a home builder, who was suffering under the massive weight of the taxes, fees, permits and other measures imposed by all three levels of government – federal, provincial and municipal – on the housing construction and development industry. One of the key reasons for our current housing crisis – other than the chaotic immigration policies of the federal Liberals – is that all of the costs imposed by governments on new housing construction raise the prices out of reach for potential homeowners. 

It wasn’t just government-imposed cost issues that were involved. One lumber supplier noted that he basically had to beg the government bureaucrat involved to actually come into the office so that the business owner could give him the building plans he needed to have approved. As is well-known, government employees got very comfortable working from home during the pandemic – with full pay of course while businesses were collapsing and their employees laid off. Now that government employees are being asked to come back to the workplace, they are resisting and causing all kinds of problems for the businesses that need to deal with them to have their projects approved, permits signed, regulatory measures understood and other issues that businesses have to resolve with government officials.  

Some other stories that hit the news involved the tendency of young people to not aspire to jobs in management. As being promoted in most jobs does tend to involve becoming a manager, this suggested these young workers were fine with staying in the same subordinate positions for long periods and perhaps even permanently. Some studies indicate that over 50 per cent of young professionals are not interested in becoming managers, a trend that is being called “conscious unbossing”, because of perceived levels of stress, low rewards, and a desire to avoid “burnout” and prioritizing work-life balance. This lack of ambition does not bode well for Canada’s future. 

Some other recently-released data show that the number of government employees has increased in recent years from about one in five to one in four. This isn’t a shocking finding considering that the Trudeau government greatly increased federal government size and cost, as did a number of provinces and municipalities.  However, when unproductive public sector job creation outstrips that of the productive private sector, that is a recipe for fiscal disaster for any country. 

To add insult to injury, it is well known that government employees earn more than their counterparts in the same jobs in the private sector, with the added bonus of generous guaranteed pensions, earlier retirements and other benefits. The growth in the size of government at all levels means these costs will be even more onerous on private sector taxpaying businesses and their employees. 

None of this is exactly new, but it has reached a breaking point. The data have been very clear that Canada has a serious productivity problem, and that is directly connected to our standard of living as Canadians. Left leaning governments, labour unions and other leftist constituencies have been very successful in promoting their agenda for the last couple of decades. Such an agenda includes working less for more pay, earlier retirements, shorter work weeks, more working from home and contemplating a universal basic income, among other things. As critics often stated about the Trudeau government, it was far too focussed on distributing the pie and not at all on increasing the size of the pie so that the greater benefits could be affordably financed. All of these trends suggest that it will be very difficult to increase Canada’s economic productivity in future.

This is a far cry from what previous generations of Canadians experienced, where the understanding that a rewarding career of hard work would lead to a decent lifestyle, home ownership and a comfortable retirement. And the Canadian economy performed well during those years. The pervasive leftist ethos is the very opposite, where a significant proportion of Canadians depend on government for all or a significant part of their livelihood, hard work and productivity is discouraged and self-indulgent “work-life balance” issues prevail over earning your keep and contributing to society. As history has repeatedly shown, that was never a recipe for success for any economy. It won’t be for Canada either. 

Catherine Swift

Catherine Swift is President of the Coalition of Concerned Manufacturers & Businesses of Canada (CCMBC). She was previously President of Working Canadians from 2015-2021 & President & CEO of the Canadian Federation of Independent Business (CFIB) from 1995-2014. She was Chief Economist of the CFIB from 1987-1995, Senior Economist with TD Bank from 1983-1987 & held several positions with the federal government from 1976-1983.

She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.

She has an Honours BA and MA in Economics.

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