Why I’m optimistic about Canada’s future

The reason I’m optimistic about Canada’s future really lies in our federal/provincial system of government. Our federal system creates a kind of laboratory in Canada where provinces are largely free to create their own political and economic environments for the nation’s citizens and businesses. Over time, the provinces fostering more supportive, creative and enterprising environments should win out in attracting the more progressive, intelligent and productive businesses and people. Such environments then develop a virtuous cycle that further reinforces these positive trends in successive waves, improving certain provincial economies. Compare the political economies of Canada’s provinces across a few key metrics and you will soon see which provinces are which.

Canada should survive and thrive over time because of this positive dynamic system, despite any abuse it takes from periodic bad ideas.

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About klippensteincapital

Indentifying and valuing publically traded companies for profitable investment.

2 responses to “Why I’m optimistic about Canada’s future”

  1. gsmurphy1 says :

    I’ve often wondered why economic discussions leave me feeling uneasy. This post helped clarify that for me. I prefer using the word “virtuous” to describe morals (the way we treat each other) rather than to affirm “improving certain provincial economies”.

    I know I benefit a lot from the “supportive, creative and enterprising environments” that attract and encourage wealthy and “progressive, intelligent and productive businesses and people”. But I’m also aware that these “supportive, creative and enterprising environments”, because of their focus on progress (especially in the bottom line) aren’t very supportive of many Canadians who may not be progressive or intelligent or productive because of mental and physical limitations due to genetics, accidents or age, and the list goes on.

    I hope that our taxes are fairly shared between the later group as well as the former. I suppose it depends on what Canadians feel is important. So I hope and hope that hope is still a virtue. I try to cultivate hope in myself and others, even if we aren’t that intelligent or productive. So I hope and pray that we all can find ways to be successful and compassionate.

    • klippensteincapital says :

      Thank you for your insightful comment, it points, among other things, to the difficulty in making concise yet meaning generalizations that don’t miss more than they include.

      Allow me to address two of the points you made. 1) You are right that virtuous refers to “morals” of individuals, but I used, not the word virtuous, but the term “virtuous cycle,” which really means “one good thing leads to another” and is in common use in economic discourse. Even so, the same or similar terms used in different disciplines sometimes leave us [feeling] cold. 2) I was speaking of economies not individuals while you are [rightly] concerned about individuals. Yet, as I expect you would agree, all other things being equal, people are most helped in countries that have the organization and the means to help. It should come as no surprize that social spending per person is highest in Alberta, also Canada’s richest province. In Canada, the least fortunate are likely most fortunate living in the provinces where the biggest fortunes are being created.

      Most generally, your comments raise concerns about the redistribution of wealth for the benefit of individuals — especially the least fortunate. In Canada, such distributions happen both within and between provinces. Last time I checked, our own province, Manitoba, benefited hugely from the more productive economies of other provinces: almost 40% of our government spending in our province comes from transfers from wealthier provinces. That is perhaps the good news. The bad news is that the jobs, skills and virtuous economic cycles are created in the economies of the givers, not the receivers … adding perhaps a new insight to the saying that “it is better to give than to receive.”

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