Category Archives: Business Insights & Lessons Learned

Economists Are Finally Catching Up – But Will Politicians Listen?

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For years, many of us outside the ivory tower have watched economists confidently explain the world using tidy models that don’t quite match reality. Now, it seems even the experts are starting to wake up. Nobel laureate Angus Deaton, a man who has spent over five decades shaping economic thought, recently admitted that he’s rethinking much of what he once believed. In his essay, Rethinking My Economics, he acknowledges something the rest of us have known for a long time; economics, as it has been practiced, has ignored some fundamental truths about power, fairness, and the actual lives of working people.

One of his biggest realizations is that power—not just free markets or technological change—determines wages, prices, and opportunities. The old economic story said that workers got paid what they were worth, and if wages were low, it was because of “supply and demand.” Deaton now recognizes that corporate power has a much bigger role than economists have admitted. Employers dictate pay, not some invisible hand. This is what workers and unions have been saying for generations.

Speaking of unions, Deaton now regrets his past views on them. Like many economists, he once saw unions as a drag on efficiency. Now he sees them as a necessary counterbalance to corporate power. He even links their decline to some of today’s biggest problems—like stagnant wages and the rise of populism. Those of us who watched good union jobs disappear over the decades could have told him that.

Deaton also revisits the supposed wonders of free trade and globalization. He used to believe they were unquestionably good for everyone, lifting millions out of poverty worldwide, and now he wonders if the benefits of global trade have been overstated, especially for North American workers. It turns out that shipping jobs overseas and gutting local industries does have consequences. Again, not news to the factory workers and small-town business owners who saw their livelihoods disappear.

Even on immigration, Deaton has had a rethink. While he still sees its benefits, he admits he hadn’t fully considered its effects on low-wage workers. Many working-class folks—especially in industries like construction and manufacturing—have long argued that an influx of labor can drive down wages. For decades, economists dismissed these concerns as uninformed or even xenophobic. Now, Deaton is realizing that, actually, those workers had a point.

One of the biggest flaws in modern economics, Deaton argues, is its obsession with efficiency. The field has spent too much time focusing on what is “optimal” in theoretical terms while ignoring what is fair. Efficiency is great if you’re a CEO looking at profit margins, but for ordinary people trying to build stable lives, fairness matters just as much—if not more.

Perhaps most importantly, Deaton now believes that economics needs to learn from other disciplines. Historians, sociologists, and philosophers have long been tackling questions about inequality, power, and justice that economists are only now beginning to take seriously. Maybe if more economists had paid attention to those fields earlier, we wouldn’t be in such a mess now.

Which brings us to Mark Carney. Once the golden boy of central banking, Carney is now stepping into the political arena with the Canadian Federal Liberals, promising policies that sound progressive, but still carry the scent of Bay Street. The big question is: will his economic approach reflect the real-world reckoning that Deaton and others are finally having, or will it be more of the same old technocratic tinkering? Carney has talked a lot about inclusive growth and climate action, but will he acknowledge—like Deaton now does—that power imbalances, corporate dominance, and the decline of unions are at the heart of inequality? Will he push policies that actually shift power back to workers, or just dress up neoliberal economics with a few social programs? If Carney truly embraces Deaton’s new thinking, we might see a real departure from the old economic playbook, but if he sticks to the well-worn path of market-friendly “solutions,” it’ll just be another round of the same policies that got us here in the first place.

It’s refreshing to see someone like Deaton openly question his own past beliefs. It’s a rare thing for a leading economist to admit they’ve been wrong, but for those of us who have lived through the consequences of these flawed economic theories, starting with the years of Reagan and Thatcher, the real question is: Why did it take them so long to figure this out? And now that they have—will the politicians actually do anything about it?

The Financial Balancing Act of Cities 

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Having lived on four continents, I have always found myself drawn to smaller and smaller communities for my home. Although I currently reside just 45 minutes from a capital city of one million, my daily life unfolds in a town of fewer than 15,000, where infrastructure is well maintained, and population growth remains manageable. However, the same cannot be said for the world’s larger cities, which struggle to keep pace with rapid urbanization, strained public services, and crumbling infrastructure. As populations surge, these cities face mounting challenges in housing affordability, traffic congestion, environmental sustainability, and social inequality. The pressure to expand services while maintaining quality of life grows ever more daunting, forcing urban planners to grapple with complex solutions that balance progress with livability.

As I said, major cities face persistent challenges in maintaining infrastructure, particularly transportation networks. The costs of managing traffic, repairing roads, and ensuring safe mobility place heavy demands on municipal budgets. However, cities also generate significant financial returns, primarily through commercial property taxes. Businesses cluster in urban centers to take advantage of high foot traffic and workforce access, providing a steady revenue stream that supports public services and infrastructure.

Commuters further strengthen this economic engine. While they may reside in surrounding suburbs, their workdays are spent in the city—eating at restaurants, shopping, and using local services. Their daily spending injects revenue into businesses, which in turn contributes to the city’s tax base. This dynamic allows large cities to maintain economic vitality without solely depending on residential tax revenue. The cycle of investment and reinvestment enables cities to expand and modernize infrastructure, accommodating growing populations and business activity.

What Is the Ideal City Size?
There is no universal “optimal” city size, as a community’s efficiency depends on geography, economic function, and resident needs. However, research suggests that mid-sized cities (50,000–100,000 residents) often strike the best balance between economic diversity and infrastructure manageability. They offer a strong mix of job opportunities, public services, and cultural amenities while avoiding the congestion and financial strain of major metropolitan areas. Additionally, studies have linked this population range to higher rates of civic engagement and even better athletic development, as mid-sized towns tend to produce more professional athletes per capita than larger cities.

Smaller-scale planning models, such as New Urbanism, advocate for compact, walkable neighborhoods of 10,000–30,000 residents. These communities emphasize mixed-use development, local amenities, and reduced car dependency—design elements that promote both economic activity and social cohesion. At an even smaller scale, research on human social networks suggests that communities of around 150 people optimize social bonds, creating close-knit environments where personal relationships thrive.

Ultimately, sustainable urban planning requires balancing economic opportunities with infrastructure capacity. While larger cities offer broa job markets and cultural diversity, mid-sized and smaller communities often provide a stronger sense of connection, lower living costs, and a more manageable scale of development.

When Big Cities Outgrow Their Tax Base
As major cities expand, their infrastructure demands often surpass what local tax revenues can support. Even in high-tax environments like New York, Los Angeles, and Chicago, the financial burden of maintaining transit systems, utilities, and social services outstrips property and business tax income. The situation is further complicated by the growing demand for affordable housing, healthcare, and education, which places additional strain on municipal budgets.

This challenge is not unique to North America. Global cities such as London and Tokyo face similar struggles, often resorting to controversial funding measures like congestion pricing, privatization of public services, or reliance on state and federal subsidies. The result is an ongoing cycle of deferred maintenance, rising public debt, and political pressure to either cut services or increase taxation.

To address this imbalance, urban planners increasingly advocate for decentralization—shifting growth toward smaller regional centers to distribute population and economic activity more evenly. Encouraging mid-sized cities to absorb a greater share of development could relieve pressure on overstretched metropolitan areas while fostering more sustainable and resilient urban landscapes. By investing in infrastructure and economic incentives outside major cities, governments can create a more balanced and efficient urban network that benefits a broader population.

From Prescriptions to Prevention: The Growing Impact of Canadian Pharmacists

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Pharmacists in Canada have become essential pillars of the healthcare system, taking on expanded roles that go far beyond dispensing medications. As our population grows and ages, and as primary care resources become increasingly strained, pharmacists are stepping up to fill critical gaps in care. Their unique combination of accessibility, expertise, and patient trust makes them well-suited to these enhanced responsibilities.

One of the most visible ways pharmacists have broadened their reach is through vaccine administration. It wasn’t so long ago that getting a flu shot or other routine vaccinations required a trip to the doctor’s office or a public health clinic. Now, across Canada, pharmacists play a key role in immunization programs. The COVID-19 pandemic underscored their importance, as pharmacists helped deliver millions of vaccine doses quickly and efficiently, often reaching communities where healthcare access was otherwise limited.

Another area where pharmacists are making a real difference is in treating minor ailments. In many provinces, they are now authorized to prescribe medications for everyday conditions such as urinary tract infections, seasonal allergies, and cold sores. This reduces the need for a lengthy wait at a doctor’s office and allows patients to receive timely treatment. Alberta, for instance, has been at the forefront, granting pharmacists the authority to prescribe independently. It’s a model that has proven effective and is gradually being embraced elsewhere.

Beyond acute issues, pharmacists are increasingly involved in the long-term management of chronic diseases like diabetes, hypertension, and asthma. Their role often includes monitoring patients, adjusting medications, and providing counseling to ensure treatments are followed correctly. Programs like Ontario’s MedsCheck allow pharmacists to conduct thorough reviews of a patient’s medication regimen, helping to prevent complications and improve quality of life. For those managing complex conditions, this kind of hands-on support can be transformative.

Pharmacists have also emerged as key players in addressing Canada’s opioid crisis. Many now provide naloxone kits and training, equipping individuals and families to respond to overdoses. Additionally, they support patients undergoing opioid substitution therapy, such as methadone or buprenorphine treatment, helping to reduce stigma and promote recovery. These services demonstrate the compassion and expertise pharmacists bring to some of the most challenging aspects of healthcare.

Their work extends even further, encompassing point-of-care testing for conditions like strep throat, high cholesterol, or blood sugar levels. By offering immediate results and on-the-spot advice, pharmacists enable patients to make informed decisions without delay. Nova Scotia, for example, has introduced rapid strep throat testing in pharmacies, where patients can receive a prescription on the same visit if necessary.

Mental health care is another area where pharmacists are proving invaluable. They regularly counsel patients on the proper use of psychiatric medications, monitor for side effects, and collaborate with other healthcare providers to ensure effective treatment. Saskatchewan has introduced collaborative care models that empower pharmacists to take a more active role in managing mental health conditions, a critical service given the growing demand for mental health support.

Education and preventive care are also cornerstones of pharmacists’ expanding role. They are often the first point of contact for patients seeking advice on lifestyle changes, smoking cessation, or managing the early signs of chronic illnesses. Programs in provinces like Ontario provide pharmacists with the tools and reimbursement to run smoking cessation clinics, helping countless patients improve their long-term health.

These expanded responsibilities are not without challenges. The scope of practice varies across provinces, and public awareness about what pharmacists can offer remains limited. Additionally, some services lack adequate funding, which can hinder their availability. But the potential is enormous. By empowering pharmacists further—perhaps by granting them authority to prescribe routine medications like birth control—Canada can make significant strides in improving healthcare access and outcomes.

In a system often characterized by long wait times and overstretched resources, pharmacists have emerged as trusted, knowledgeable, and accessible providers. Their ability to combine technical expertise with compassionate care is reshaping how Canadians experience healthcare, proving that pharmacists are much more than dispensers of medications—they are true healthcare partners.

Bridging the Water Divide: Inequality in Access to Potable Water

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In this second of four articles on water, I want to explore the social inequalities that surround access to potable water. 

Access to clean drinking water should be a given, not a privilege. Yet across the world, millions are denied this most basic human right. The problem isn’t simply about scarcity—there’s enough water on the planet to sustain everyone. The real issue lies in the deep-seated inequalities that dictate who gets reliable access and who doesn’t. Socioeconomic status, geography, and government priorities all play a role in determining whether a community has safe drinking water or must rely on unsafe sources. These disparities create ripple effects, fueling public health crises, widening economic gaps, and deepening gender inequalities.

The divide between urban and rural communities in access to potable water is particularly glaring. In many developing countries, large cities have water infrastructure in place, but those living in informal settlements or on the outskirts often lack access to piped water. Meanwhile, rural populations—especially Indigenous communities and those in remote areas—are frequently left behind due to chronic underfunding and government neglect. In Canada, for example, dozens of First Nations communities have been under long-term boil-water advisories, some for decades. Despite the country’s wealth and technological capacity, these communities remain without the infrastructure needed to ensure safe drinking water. It’s a stark reminder that systemic inequality, not just technical limitations, drives the crisis.

Rapid urbanization is making things even worse. Cities are growing faster than their water infrastructure can keep up, leading to supply shortages, contamination from aging pipes, and increasing pressure on surrounding water sources. In places like Cape Town and Chennai, urban water crises have shown that even major metropolitan areas are vulnerable to running dry when poor planning and climate pressures collide. When water becomes scarce, it’s always the poorest communities that suffer the most—forced to wait in long lines, pay inflated prices, or rely on unsafe alternatives. Meanwhile, industries and wealthier neighborhoods often find ways to secure their supply, reinforcing the divide.

Gender inequality is another hidden consequence of water scarcity. In many parts of the world, the burden of collecting water falls almost entirely on women and girls. This often means walking for hours each day just to fetch a few buckets, time that could be spent in school, at work, or simply resting. The physical toll is immense, leading to long-term health issues, and the journey itself can be dangerous, exposing women to the risk of violence and harassment. The consequences extend far beyond individual hardship. When girls miss out on education because they have to collect water, their future economic opportunities shrink, trapping them—and their families—in cycles of poverty.

Solving these problems isn’t just a matter of engineering better water systems; it’s about rethinking how we value and distribute water. Governments and international organizations must prioritize investment in water infrastructure, not just in major cities but in the rural and marginalized communities that have been neglected for too long. Local communities need to be empowered to manage their own water resources, with access to the funding and technology necessary to implement sustainable solutions. At the policy level, water governance needs to be strengthened to prevent exploitation by corporations that see water as a commodity rather than a human right. And if we’re serious about addressing gender inequality, ensuring closer access to safe water sources must be a top priority.

At its core, the water crisis is a justice issue. It’s not just about pipes and treatment plants—it’s about power, inequality, and whose needs are prioritized. The good news is that solutions exist, and they’re entirely within our reach. The question is whether we have the political will and collective determination to make safe water a reality for everyone, not just those fortunate enough to be born in the right place.

Elbows Up, Canada! 

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Ah, Canada. The land of politeness, poutine, and apparently perfectly timed political drama. If you’ve been paying attention over the last month, you know it’s been a real doozy for us Canucks. First, Mark Carney, the economist-turned-political-messiah, officially stepped onto the national stage. Then, Mother Nature decided to remind us who’s boss with a wild mix of warm spells, deep freezes, and sudden dumps of snow. And finally, as if the week wasn’t Canadian enough, we got a new rallying cry: Elbows Up!

Mark Carney’s entry into federal politics has been long expected, but still managed to cause a stir. Here’s a guy who made central banking look—well, not exciting, exactly, but at least important enough that people pretended to care. He kept Canada’s economy steady through the 2008 financial crisis, under the Harper government, jetted off to the UK to help them through Brexit, and now he’s back, seemingly ready to steer this country through whatever economic storm comes next. He’s got the calm, measured tone of a man who has witnessed financial meltdowns up close, and the kind of charisma that makes fiscal policy sound almost appealing; but politics is a different beast altogether. Managing currency fluctuations is one thing—handling Question Period is another. I wasn’t really looking forward to yet another grey-haired white guy leading the country, but we’ll see if Canada buys what he’s selling. For now, we know Mark Carney is officially in charge of the Liberals, and almost the new Prime Minister.

Meanwhile, the weather has been reminding Canadians why March is the cruelest month. The classic fake spring arrived in full force, tricking people into putting their winter boots away—only for reality to come slamming back with an ice storm, a deep freeze, or a snow dump, depending on where you live. Ottawa, as always, seemed to be experiencing three different seasons at once, with the added insult of a wind chill so sharp it felt personal. And yet, like every year, we go through the same ritual; the brief moment of hope, the inevitable betrayal, and then the begrudging acceptance that we are, in fact, still in Canada.

And then there’s Elbows Up. What started as a phrase to describe Connor Bedard’s determined return to hockey after a brutal injury has quickly taken on a life of its own. There’s something deeply Canadian about it—it’s tough, practical, and just a little bit scrappy. It’s the perfect metaphor for how we handle everything. Snowstorm? Elbows up. Hockey fight? Elbows up. Trying to squeeze past someone in a Tim Hortons without knocking over their double-double? Elbows up—politely, of course.

It’s a reminder that we don’t back down easily in this country. We don’t go looking for trouble, but if it comes, we brace ourselves and push through—sometimes with a bit of force, but always with the unspoken agreement that we’ll say sorry afterward. So whether you’re trying to navigate Carney’s political future, survive the next swing in temperature, or just make it through the day without slipping on the ice, one thing is clear; keep your elbows up, Canada. It’s what we do best.

And not one mention of the Pumpkin Spice Palpatine!

The Bureaucratic Dating Blues

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Dating a retired public servant in eastern Ontario is like entering a relationship with a government agency—there’s a system, and it runs on a strict schedule. You may think you’re spontaneous, but you’ll quickly learn that spontaneity has no place in the world of meticulously planned lunches and pickleball tournaments.

First, there’s the lunch calendar, sacred and immutable. Tuesdays are for soup and sandwiches with “the girls,” a rotating cast of retired colleagues with names like Barb, Diane, and Cheryl. Thursdays? Reserved for the seniors’ center “Lunch & Learn,” where they gleefully absorb new knowledge about gardening or the benefits of turmeric.

Sports activities are non-negotiable, too. Golf in the summer, curling in the winter, and pickleball year round. Try suggesting a last minute romantic getaway, and you’ll be met with, “I can’t. It’s our semi-annual shuffleboard tournament!”

Then there are the day trips: wineries in Prince Edward County, fall drives to gawk at leaves, and bus tours to Merrickville for “just a little shopping.” You’ll find yourself in the back seat of a rented minivan, sipping coffee from a thermos, wondering if this is really what dating looks like now.

But don’t worry—there’s a silver lining. These retirees are loyal, organized, and punctual. Just remember: your Friday dinner date is at 5 p.m. sharp, because they need to be home in time for “Jeopardy!” You may not get a whirlwind romance, but you’ll always know exactly where you stand—and what’s for lunch tomorrow.

Work From Home: The Good, The Bad, and The Surprisingly Productive?

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As a business consultant, my work follows a hybrid model – my home office, to client sites, to hotels and back home again. These days, I rarely accept projects where the client requires that I work full-time out of their offices, as I prefer to focus on my project deliverables, and find hourly coffee breaks, and ad hoc meetings distracting. While I often lead multi-stakeholder initiatives, I much prefer working as part of a small team capable of leveraging today’s collaborative tools and communication apps from the sanctity of my home. 

The debate over working from home (WFH) versus traditional office settings has gained momentum over the past few years, especially after the COVID-19 pandemic pushed millions into remote work. In Canada, the transition was significant: before the pandemic, about 7% of Canadians worked from home; by April 2020, that number surged to 40%, before settling around 20% in 2023. Research on this shift has produced mixed findings, with some studies showing increased productivity and others highlighting challenges that come with remote work.

Positive reports, like the 2025 study by Fenizia and Kirchmaier, suggest that WFH can lead to a productivity boost—12% in the case of public sector workers. This increase was largely attributed to fewer distractions and a more flexible environment. Stanford’s 2020 study also found a 13% increase in performance among remote workers, citing quieter environments and fewer sick days as contributing factors. Similarly, the U.S. Bureau of Labor Statistics observed a rise in productivity across industries that adopted remote work between 2019 and 2021.

However, not all findings are so glowing. A University of Chicago study found that WFH doesn’t necessarily boost productivity across the board, noting that some jobs still require in-person collaboration. The San Francisco Federal Reserve echoed this sentiment, suggesting that remote work alone isn’t a major factor in driving productivity growth. Some sectors, like tech, have reported stable productivity, but with challenges in communication and collaboration. Studies in Canada have also shown that the ability to work from home varies by industry. Finance and insurance sectors were more adaptable to remote work, while industries like manufacturing and agriculture saw little benefit from the shift.

Despite the varied findings, employee demand for flexibility remains strong. A 2024 survey by the Public Service Alliance of Canada revealed that 81% of Canadians believe remote work benefits employees, with 66% reporting that it boosts organizational productivity. The survey found that most employees felt more focused and productive while working remotely, enjoying the balance it offers. Still, companies are grappling with how to make remote work work for everyone, with some—like Amazon—insisting on a return to the office to foster collaboration.

Ultimately, the future of work in Canada seems to be leaning towards hybrid models, where employees can enjoy the benefits of both office interaction and remote flexibility. The challenge remains to find the right balance, considering industry-specific needs and employee preferences, ensuring that productivity, morale, and collaboration thrive no matter where work is done.

Sustainable, Affordable, Inclusive: Canadian Cities Reshaping Rental Housing

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For much of the 20th century, Canadian cities played a direct role in developing and managing affordable housing, often in partnership with provincial and federal governments. Public housing projects, such as Regent Park in Toronto and Benny Farm in Montreal, were built to provide low-income families with stable rental options. However, starting in the 1980s and accelerating through the 1990s, municipalities largely withdrew from housing development as senior governments cut funding and shifted responsibility to the private sector. The federal government ended its national social housing program in 1993, leaving provinces and cities with fewer resources to maintain or expand affordable housing stock. As a result, municipal involvement in housing became limited to zoning regulations, subsidies, and partnerships with private developers, contributing to the affordability crisis seen today.

Canadian cities are beginning to take a more hands-on approach to tackling the housing crisis again, by developing their own low-cost community rental properties on municipally-owned land. With rising rents, stagnant wages, and increased housing demand, affordability has become a pressing concern across the country. Many municipalities, recognizing the limits of relying solely on the private sector, are leveraging public land to create permanently affordable rental options for lower-income residents.

One of the key advantages of this approach is the ability to bypass speculative real estate markets that often drive up costs, and limit long-term affordability. By building on land they already own, cities can keep costs down and ensure that these units remain accessible to those in need, rather than being converted into high-priced rentals or condominiums. Toronto’s Housing Now initiative is a prime example, using city-owned lands to develop mixed-income communities where a significant portion of the units are dedicated to affordable rental housing. These projects are structured to remain affordable over the long term, either through direct municipal ownership or partnerships with non-profit housing providers.

Collaboration with non-profit organizations, housing cooperatives, and community land trusts has become an essential part of this strategy. Many cities recognize that while they can provide the land and initial investment, long-term management and tenant support are often best handled by organizations with experience in affordable housing. Vancouver has been a leader in this area, working with its Community Land Trust to develop and manage affordable units across the city. These partnerships not only ensure that affordability is maintained in perpetuity but also allow for a more community-focused approach to housing, where tenant needs and long-term sustainability are prioritized over profit.

Another emerging trend in municipal-led housing development is the use of modular and prefabricated construction. These methods allow for faster, more cost-effective builds, reducing both construction time and expenses. Ottawa and Edmonton, for example, have invested in modular housing projects to provide rapid solutions for those in immediate need, including people experiencing homelessness. These developments often integrate support services such as mental health care, employment programs, and childcare, recognizing that affordability is about more than just keeping rent low—it’s about providing stability and access to essential resources.

Policy changes at the municipal level are also playing a crucial role in supporting these initiatives. Some cities have adjusted zoning laws to allow for higher-density affordable housing developments or have introduced inclusionary zoning policies that require developers to include affordable units in new projects. Montreal’s 20-20-20 bylaw is an ambitious attempt to balance private development with affordability, mandating that large residential projects include at least 20% social housing, 20% affordable housing, and 20% family-oriented units. While policies like these don’t create city-built rental properties directly, they reinforce the broader municipal commitment to ensuring housing remains within reach for lower-income residents.

Despite the progress being made, challenges remain. Municipal governments often face funding constraints, relying on provincial and federal support to bring these projects to life. Bureaucratic hurdles and community opposition—often fueled by NIMBY (Not In My Backyard) sentiments—can slow down approvals and limit where these developments can be built. However, growing public awareness of the affordability crisis has led to increased political pressure to push projects forward. Programs like the federal Housing Accelerator Fundand the Rapid Housing Initiative are providing much-needed financial backing, allowing cities to expand their efforts and bring more units online.

The future of municipal-led affordable rental housing looks promising. While cities alone can’t solve Canada’s housing crisis, their willingness to take a more active role in development is a step toward ensuring that affordable housing is treated as essential infrastructure rather than a market-driven commodity. If these efforts continue to grow, they could serve as a model for other municipalities seeking sustainable, long-term solutions to the housing affordability challenge.

Canada’s Potential Economic Transformation: From Raw Commodities to Value-Added Manufacturing

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Canada has long been defined by its vast natural resources, exporting raw commodities like oil, lumber, minerals, and agricultural products to its largest trading partner, the United States. This resource-based economy has created prosperity, but left Canada vulnerable to global market fluctuations and overreliance on one major partner. Imagine, however, a seismic shift where Canada halts raw commodity exports to the U.S. and reorients its economy toward value-added manufacturing, inspired by Germany’s renowned industrial model. Such a transformation could redefine Canada’s role in the global economy, fostering innovation, diversification, and resilience.

The cornerstone of this strategy would be transitioning away from the sale of unprocessed resources. Instead of exporting crude oil, Canada could refine it domestically into high-quality petrochemical products, such as plastics and specialty chemicals. Similarly, rather than selling raw lumber, the country could invest in producing engineered wood products, furniture, and prefabricated housing materials. By processing these materials at home, Canada would capture greater value from its resources, create high-skilled jobs, and reduce economic dependency on the United States.

The shift to manufacturing would require a robust focus on innovation, supported by substantial investment in research and development (R&D). Germany’s manufacturing success is largely driven by its Mittelstand—small and medium-sized enterprises specializing in precision engineering, machinery, and high-quality goods. Canada could emulate this approach by fostering clusters of specialized industries in areas such as green energy technology, robotics, and medical devices. Government incentives, tax breaks, and public-private partnerships could nurture these industries and position Canada as a global leader in advanced manufacturing.

Education and workforce development would play a crucial role in this transformation. Canada’s universities and technical colleges would need to prioritize programs in engineering, technology, and applied sciences. Skilled trades would also need to be elevated in prestige and supported through apprenticeships and certification programs, ensuring a steady supply of talent for emerging industries. Drawing inspiration from Germany’s dual education system, which integrates classroom learning with practical experience, Canada could create a workforce tailored to the demands of a high-tech manufacturing economy.

While transitioning to a manufacturing-based economy, Canada would also strengthen its global trade relationships, reducing reliance on the U.S. market. Trade agreements with the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) nations, and emerging markets in Africa and Asia would be leveraged to expand exports of Canadian-made goods. This diversification would provide stability in the face of economic or political disruptions in any one region.

Environmental sustainability would underpin this economic transformation. With global demand shifting toward eco-friendly products, Canada’s manufacturing sector could focus on producing green technologies, such as electric vehicles, renewable energy infrastructure, and energy-efficient building materials. These industries would not only align with Canada’s climate commitments but also tap into growing markets worldwide.

However, such a dramatic shift would not be without challenges. Significant upfront investment, trade tensions with the U.S., and resistance from established industries would need to be managed. Yet the long-term benefits—a diversified, innovative, and resilient economy—would far outweigh the short-term obstacles.

By embracing value-added manufacturing, Canada could break free from its resource-dependent past and secure a prosperous, sustainable future. This shift would allow the country to redefine its economic identity, becoming not just a supplier of raw materials but a global leader in high-quality, innovative goods.

From Highways to High Taxes: How Eisenhower Built a Thriving Economy

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Dwight D. Eisenhower’s economic policies reflected a deep commitment to fiscal conservatism, balanced budgets, and strategic government investment. Unlike his predecessors, who expanded federal programs through deficit spending, Eisenhower believed that long-term economic stability required careful financial management. His presidency oversaw a period of sustained growth, low inflation, and rising living standards, largely because he resisted both reckless tax cuts and unchecked federal expansion. Instead, he sought to create an economic environment where businesses could flourish under stable conditions while ensuring that the government maintained the resources necessary for national development.

A staunch advocate of balanced budgets, Eisenhower saw unchecked deficits as a threat to economic security. His administration achieved budget surpluses in three of his eight years, a remarkable feat given the pressures of Cold War military spending. While he faced pressure from both Congress and business leaders to reduce tax rates, he maintained high marginal taxes, including a top personal income tax rate of 91 percent. Corporate tax rates also remained high, but rather than focusing on cutting taxes as a means of stimulating growth, Eisenhower prioritized stability and investment. He understood that sustainable prosperity was best achieved not through short-term corporate windfalls but through a well-maintained economic infrastructure that supported long-term business expansion and job creation.

Perhaps his most lasting economic achievement was the Federal-Aid Highway Act of 1956, which launched the Interstate Highway System. Although justified as a national security measure, this massive infrastructure project became a cornerstone of economic growth, stimulating the construction industry, creating millions of jobs, and expanding the reach of commerce across the country. It also fueled the suburban boom of the postwar era, enabling businesses to reach new consumers and accelerating the rise of the American middle class. Unlike later presidents who pursued economic stimulus through tax cuts alone, Eisenhower demonstrated that government investment in national infrastructure could pay long-term dividends for both businesses and workers.

While defense spending remained a major priority, Eisenhower was careful to keep military expenditures in check, warning in his farewell address against the growing influence of the “military-industrial complex.” Though he believed in a strong national defense, he avoided costly foreign entanglements and sought to balance security needs with economic sustainability. His administration also made key investments in science and education, helping lay the groundwork for future technological advancements that would drive economic growth.

Eisenhower’s approach to economic management stands in stark contrast to that of Donald Trump, whose administration pursued aggressive tax cuts, particularly for corporations and the wealthy, under the belief that reducing government revenue would spur business expansion. While Trump’s 2017 Tax Cuts and Jobs Act provided a temporary boost to growth, it also contributed to record-high deficits without the kind of long-term investment that characterized Eisenhower’s policies. Instead of cutting corporate taxes to unsustainable levels, Eisenhower used tax revenue to build infrastructure, strengthen education, and fund key government programs that benefited both businesses and workers. Trump, and indeed modern policymakers, could take a lesson from Eisenhower’s 1950s playbook by recognizing that real economic strength comes not just from slashing tax rates but from creating the foundational structures that allow the economy to thrive for generations.