Welcome!

News Feed Item

The Fraser Institute: Ontario's Poor Economy Hurts the Rest of Canada

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/14/14 -- Ontario's poor economic performance is dragging down Canada's economy, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

The study, Can Canada Prosper without a Prosperous Ontario?, examines Ontario's shift from the economic engine of Canada to a "have not" province that received $3.2 billion in equalization payments from Canadian taxpayers in 2013/14.

"Because of Ontario's immense size and population, and because the Canadian economy is highly integrated, what happens in Ontario significantly affects Canada's national economy. An economically stronger Ontario means an economically stronger Canada," said Livio Di Matteo, study co-author, Fraser Institute senior fellow and economics professor at Lakehead University.

So what's happening in Ontario?

Over the past decade, but particularly since the recession of 2008/09, Ontario's economy has not performed on par with the rest of Canada, due in part to its slow economic growth and spiralling public debt.

For example, from 1981 to 2004, Ontario's per person GDP was either above or equal to the rest of Canada. However, by 2012 Ontario's per person GDP ($45,933) was 5.6 per cent lower than the rest of Canada ($48,643). And if data for Ontario were excluded, notes the study, Canada's per person GDP would be 2.2 per cent higher.

Additionally, since 2000, Ontario has recorded the third lowest rate of private sector job creation in the country, ahead of only Nova Scotia and New Brunswick. Specifically, Ontario's private sector employment growth between 2000 and 2013 totalled 14.1 per cent compared to first-place Alberta's 42.1 per cent or the 19 per cent national rate.

Moreover, from 2009 to 2013, the national unemployment rate, which averaged 7.6 per cent during that period, would have been 7.3 per cent if Ontario was excluded.

When measuring the level of business investment, the study finds that from 2003 to 2012, Ontario's average annual growth of business investment in things such as buildings, machinery and equipment was 3.0 per cent compared to 5.3 per cent for the rest of Canada.

Meanwhile, outside of Ontario, Canada has seen decent rates of economic growth in per person GDP and employment, particularly in resource-producing provinces.

"Ontario's poor record on GDP growth, employment and business investment reflects a damaged provincial economy that's dragging down the national economy," Di Matteo said.

So how can Ontario right its financial ship and lighten the load on the rest of Canada?

The study notes that Ontario could improve tax and regulatory competitiveness, boost its capital investment, reform energy and industrial policies, and make better use of Ontario's vast natural resources in forestry and mining.

"If Ontario adopts smarter policies focused on competitiveness and economic growth rather than interventionist government, it could unleash its private sector and improve Ontario's economy for the benefit of taxpayers in Ontario and across Canada," Di Matteo said.

Livio Di Matteo is in Toronto and available to media.

Follow the Fraser Institute on Twitter - Like us on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

Contacts:
MEDIA CONTACTS:
Livio Di Matteo
Senior Fellow, Fraser Institute
Office: (807) 343-8545
Cell: (807) 355-0244
[email protected]

Jason Clemens
Executive Vice-President, Fraser Institute
(604) 714-4591
[email protected]

For more information:
Mark Hasiuk
Media Relations Specialist, Fraser Institute
(604) 688-0221 ext. 517
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...