Realizing Canada’s prosperity potential Report on Canada 2 - January 2005
Canadians have built one of the world’s most prosperous economies, but we are still not realizing our full prosperity potential. To do this, individuals, businesses, and governments must work together to increase our investments for future prosperity and to strengthen market structures that stimulate innovation and upgrading.
The Institute found that Canada’s prosperity gap with the US widened from $6,000 thousand per capita in 2002 to $7,200 in 2003. This gap translates into an unrealized potential of $15,000 after tax disposable income for the average Canadian family and $90 billion in lost tax revenues for federal and provincial governments. The Institute is concerned that, while Canada has the potential for economic growth, its situation could deteriorate if we do not act now. Martin said, “We need to avoid a vicious downward economic spiral of under investment, reduced productivity, reduced capacity to invest, further reduced productivity, and the resultant restriction in our standard of living. Instead, we can create a virtuous circle by investing more and strengthening structures to increase productivity and prosperity.”
