Canadian productivity is now at 1945 levels

Relative to the US, that is: (via Jim Stanford at the Progressive Economics Forum)

Now caught in a free-trade resource trap, putting all our eggs in the basket of non-renewable resource extraction (an activity which demonstrates secularly declining productivity), we have fallen back to where we were in 1945: barely 70% of U.S. levels in the business sector.  That’s a stunning failure that should give cause for a fundamental rethink of everything we’ve done since 1984.

Well, isn’t that swell. It seems that the move towards free-trade resource trading made for the problem – resources get harder to extract over time. Throw in an ineffective method of subsidizing R&D, and you’ve got an explanation for how, in under thirty years, Canadian economic policy undid the gains in productivity from 1945 to 1984.

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