Canada's Economic Decline Was Not Sudden But Self-Inflicted
Recent revelations that Canada's GDP per capita has fallen behind that of Alabama have triggered widespread shock and disbelief among Canadians. However, columnist Sabrina Maddeaux argues that this economic shift did not happen "out of nowhere" but is the result of deliberate policy choices and a dangerous culture of complacency.
The Shock of Comparative Poverty
When The Globe and Mail published its analysis showing Canada had become poorer than Alabama based on GDP per capita metrics, many Canadians reacted with righteous indignation. The very suggestion that Canada could trail a southern U.S. state economically was met with disbelief and dismissal, reflecting what Maddeaux describes as "Canada's unique strain of economic hubris."
GDP per capita, which measures a nation's economic output divided by its population, serves as a key indicator of standard of living. While some debate whether this single metric adequately captures national prosperity, the defensive reaction to the data reveals a deeper problem: Canada's tendency to prioritize moral self-image over economic competitiveness.
The Myth of Moral Superiority
Canada has long prided itself on its social contract, which promises protection from the harsher economic realities seen in places like Alabama. This virtuous self-image, however, has increasingly become a justification for economic complacency. As Maddeaux notes, "We've been actively kneecapping ourselves for some time, all while maintaining a smug sense of superiority."
Meanwhile, Alabama has been working diligently to close economic gaps, demonstrating the kind of self-awareness and drive that Canada has lacked. The contrast highlights how moral self-perception can actively sabotage economic progress when it becomes an excuse for inaction.
Generational Divide in Economic Reality
The most disturbing aspect of Canada's economic decline is its generational nature. While the social contract may have protected those who entered housing and job markets before 2010, younger generations face what Maddeaux describes as "third-world outcomes" despite Canada's claims of world-class values.
Consider the housing crisis: A 28-year-old in Alabama can realistically hope to own a home and build a family, with median home values around US$230,000 (C$315,000) and a price-to-income ratio of 3.6. In Canada, the average home price has soared to approximately $650,000 with a price-to-income ratio of 8.4, putting home ownership out of reach for many young Canadians.
Disturbing Economic Indicators
Beyond GDP per capita, other economic indicators paint an equally troubling picture of Canada's downward mobility:
- Real incomes for Canadians in their prime working years have stagnated and declined over time
- Men past retirement age now earn more than men aged 25-34, according to economist Mike Moffatt's research
- The wealth gap increasingly divides between asset-rich older homeowners and younger non-owners
- Canada's middle class and younger generations face continuous economic compression
While Alabama's wealth gap represents a fissure between rich and poor, Canada's is predominantly generational. This creates a society where economic security becomes increasingly determined by birth year rather than merit or effort.
The Path Forward Requires Honest Assessment
The uncomfortable truth, as Maddeaux presents it, is that Canada didn't suddenly become poorer than Alabama through some external force or random circumstance. The nation has been "the architects of our own demise" through policies and attitudes that prioritize moral self-image over economic vitality.
This economic decline represents more than just statistical slippage—it reflects a fundamental failure to maintain the social contract for younger generations. Unless Canada confronts this reality and abandons the complacency justified by its sense of moral superiority, the current economic trajectory suggests further decline rather than recovery.
The challenge now is whether Canadians can move beyond defensive reactions to engage in the difficult work of economic revitalization, recognizing that being "good" and being competitive are not mutually exclusive but rather complementary goals for national prosperity.
