Paulitical Economy™

Post 357: Why Canada’s Economy is Falling Behind: Vacant Homes, Weak GDP, and Startups Leaving

Paul Musson

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  • An increasing number of homes listed for sale in Canada are vacant.
  • A look at Canada’s poor record on economic growth.
    • And sadly, it’s primarily self-inflicted.
  • In Financial Ructions:
    • More Canadians are starting new companies in the US than they are in Canada.
      • This is a significant change over the last ten years.
  • Book Review
    • We continue our review of George Selgin’s great book False Dawn.
      • One of the big contributors to the banking crisis in the early 1930s was that banks were not allowed to have branches and thus diversify their exposures.
        • Conversely, Canada did have a branch banking system and only one of the 18 banks failed during the Great Depression.
      • The bank holiday plan was drawn up by President Hoover’s team but implemented by FDR.
        • And it was the threat of publishing the names of those unpatriotic citizens who had withdrawn gold from their bank accounts that resulted in gold flooding back into banks.