Canada needs more paycheque writers | National Newswatch
By Jason Clemens, Milagros Palacios and Niels Veldhuis — Fraser Institute — Oct 2 2021
Further, consider the state of entrepreneurship. A key measure of entrepreneurship is small business startups, and the data for Canada is worrying. Since the turn of the century, the rate of small business startups (measured as a share of existing small businesses) has declined by 10.9 per cent. Simply put, fewer potential entrepreneurs are deciding to take the leap and start a business.
It shouldn’t be surprising given the links between investment, entrepreneurship and job creation that rates of private-sector job creation have been anemic. Consider that between 2016 and 2019, before the COVID recession, private-sector job creation was growing, on average, by 1.6 per cent per year. Chrétien enjoyed average annual private-sector job growth of 2.6 per cent, almost double the rate of Trudeau pre-COVID.
The contrast in the economy’s performance between these two Liberal prime ministers is equally as stark when their approach to the economy is considered. Chrétien led a revolution that resulted in a new consensus across the country characterized by lower government spending, lower taxes, balanced budgets and declining government debt, and a lighter regulatory touch on business.
Simply put, the approach of the Trudeau government since 2015 has not resulted in stronger economic growth, business investment or private-sector employment gains. Rather, economic growth, improvements in household income, business investment and private-sector job creation have all lagged relative to previous governments. And our current prime minister promises more of the same.
Jason Clemens, Milagros Palacios and Niels Veldhuis are economists with the Fraser Institute and co-authors of the End of the Chrétien Consensus.