An opinion piece arguing that Canada faces a unique economic challenge: its citizens work as many hours as Americans but earn as little as Europeans, indicating a severe productivity problem. Unlike Europe, which works fewer hours, Canada's issue stems from inefficient resource allocation, technological prowess, and institutional quality, making it a more complex problem to solve than simply increasing work hours or addressing an aging population.
Opinion: Work American hours, earn European wages: Why Canada has the worst of both worlds
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TL;DR: Key points with love ❤️An opinion piece arguing that Canada faces a unique economic challenge: its citizens work as many hours as Americans but earn as little as Europeans, indicating a severe productivity problem. Unlike Europe, which works fewer hours, Canada's issue stems from inefficient resource allocation, technological prowess, and institutional quality, making it a more complex problem to solve than simply increasing work hours or addressing an aging population.
Trending- 1 1970s: Canadian real GDP per capita began falling relative to the U.S.
- 2 1975: Average French worker put in slightly more hours than American counterpart.
- 3 1980s: Canadians worked about as much as Americans.
- 4 2000s: Canadians worked significantly more than Americans.
- 5 2008: Great financial crisis, U.S. per capita growth doubled Canada's.
- 6 2020: Average French worker worked only three-quarters as much as American counterpart.
- 7 Ongoing: Alarm bells sounding about growth rates, leaders emphasizing growth.
- Stagnant per capita incomes in Canada
- Canada having the 'worst of both worlds' economically (low income, high hours)
- Complex policy challenges to improve productivity
- Ongoing national debate on economic growth
What: Canada's economic problem of working American hours for European wages due to low productivity.
When: Since the 1970s, Canadian real GDP per capita has been falling relative to the United States. After 2008, U.S. per capita growth has been about double that of Canada. For most of the 2000s, Canadians worked significantly more than Americans, and since the 1980s, they have worked about as much.
Where: Canada, United States, Europe (France, Germany), Berlin, Canberra, U.K.
Why: Canada's problem stems from inefficient resource allocation, technological prowess, and institutional quality. For Europe, the issue is partly due to fewer working hours. The overarching problem is a stagnation of growth rates in per capita incomes relative to the United States across the developed world.
How: The article analyzes economic data, comparing real GDP per capita and working hours across Canada, the U.S., and European countries to highlight Canada's unique productivity challenge.