07/31/2026
Canada's Three New Religions Are Driving Away Prosperity
Canada should be one of the richest countries on Earth.
Not because of government spending.
Not because of record immigration.
But because this country won the geographic lottery.
The world's third-largest proven oil reserves. Massive natural gas deposits. Critical minerals essential for the AI revolution. Endless forests. Fertile farmland. Fresh water. Stable institutions. A highly educated workforce.
Few countries possess such extraordinary advantages.
Yet Canada has become one of the weakest-performing advanced economies when it comes to productivity growth and business investment.
Why?
Canada has embraced three modern "religions": environmentalism, bureaucratism and multiculturalism.
Each began with worthy intentions.
But together, they have gradually shifted Canada's focus away from wealth creation and toward wealth management.
The result is a country that talks more about regulating prosperity than creating it.
The Great GDP Illusion
Politicians love announcing that Canada's GDP has grown.
What they rarely emphasize is real GDP per person—the inflation-adjusted measure that economists use to judge whether the average citizen is actually becoming more prosperous.
The numbers tell a sobering story.
Between 2000 and 2009, Canada's real GDP per capita grew by roughly 1.8 to 2.0 percent every year.
Between 2010 and 2019, that pace slowed dramatically to approximately 0.8 to 1.0 percent annually.
Since 2019, Canada's inflation-adjusted GDP per person has been essentially flat, averaging roughly 0 to 0.2 percent annual growth, with several years of outright decline before only a modest recovery.
That should concern every Canadian.
The economy has become larger.
The population has become larger.
But the average Canadian has seen little improvement in real economic output per person.
Those are two very different things.
Growing GDP by adding more people is easy.
Growing GDP because every worker produces more value—that is genuine prosperity.
Population Growth Cannot Replace Productivity
A country does not become wealthy because more people rent apartments, buy groceries and consume services.
A country becomes wealthy because more people invent.
Build.
Manufacture.
Engineer.
Mine.
Export.
Commercialize ideas.
Increase productivity.
That is how the United States became an economic superpower.
That is how Germany became Europe's industrial engine.
That is how Japan rebuilt itself.
That is how South Korea transformed itself from poverty into one of the world's leading technology exporters.
Their prosperity was built on production—not population.
Canada once understood this.
Today, governments increasingly celebrate population growth while productivity continues to lag.
Environmentalism Without Perspective
Protecting the environment is essential.
But public policy also requires perspective.
Canada is responsible for only about 1.5 percent of global greenhouse gas emissions.
By comparison:
China produces roughly 30 percent of global emissions.
The United States produces approximately 11 to 13 percent.
Together, those two countries account for more than 40 percent of the world's emissions.
Yet Canada has imposed some of the world's most demanding regulatory processes, carbon pricing systems and approval requirements on major industrial projects.
This approach has made Canada one of the hardest democratic countries in which to build pipelines, LNG export terminals, mines, refineries and major manufacturing facilities.
The consequence is not necessarily lower global emissions.
Instead, investment often moves to countries with lower environmental standards.
Canada loses the jobs.
Canada loses the tax revenue.
Canada loses the engineering expertise.
Canada loses the industrial capacity.
Global emissions may change very little if production simply shifts elsewhere.
Canada should absolutely reduce emissions through innovation and cleaner technology.
But with only about 1.5 percent of global emissions, critics argue that Canada's policies have too often imposed disproportionately high economic costs while delivering limited influence on the global climate trajectory.
The objective should be to produce energy, minerals and manufactured goods cleaner than anyone else—not to stop producing them altogether.
Bureaucracy Has Become an Industry
Canada has become remarkably efficient at processing paperwork.
Approvals.
Consultations.
Reviews.
Assessments.
Appeals.
Then more reviews.
In many cases, obtaining permission to build now takes longer than building itself.
Large multinational corporations may survive years of regulatory uncertainty.
Entrepreneurs and smaller businesses often cannot.
Capital does not wait.
It simply leaves.
When investment leaves, factories leave.
Engineering jobs leave.
Innovation leaves.
Eventually, talented young Canadians leave as well.
Immigration Cannot Substitute for Industrial Growth
Immigration has played an important role in Canada's history.
Millions of immigrants have strengthened this country through entrepreneurship, innovation and hard work.
But immigration alone is not an economic strategy.
If governments rely primarily on rapid population growth to expand headline GDP while industrial investment, manufacturing, infrastructure and productivity fail to keep pace, living standards inevitably come under pressure.
Real prosperity comes from creating more value—not merely adding more consumers.
Canada Needs Builders Again
Canada once built transcontinental railways.
It developed the oil sands.
It built hydroelectric megaprojects.
It became a global leader in engineering and resource development.
That Canada believed that ambitious projects were worth pursuing.
Today's Canada too often celebrates another consultation instead of another construction project.
No country has ever regulated itself into prosperity.
No nation has ever become wealthy by making investment more difficult than innovation.
Canada does not suffer from a shortage of natural resources.
It does not suffer from a shortage of talent.
It does not suffer from a shortage of opportunity.
It suffers from a shortage of ambition.
If Canada wants rising living standards once again, it must return to the fundamentals that create wealth:
Industrialization.
Manufacturing.
Entrepreneurship.
Innovation.
Responsible resource development.
Productivity.
Building.
Population growth may increase the size of the economy.
But only builders increase the prosperity of the people who live in it.