What creates wealth in a country?

In my story, I believe Wealth is created through Businesses and Profits!

If there are no Profits, there is no Expansion of Credit, which expands the money supply.Banks lend money, or supply Credit to Profitable Companies to Grow Business, which in turn Creates more Employment and thus Income Tax Revenue for Governments.

Credit is created out of thin air based on trust by the bank that you will repay the loan, with interest.

On the other hand, Governments spend Tax Payers Dollars, which takes away from Investment Capital, or else, they Print Money which Devalues the Currency, making everything more expensive for consumers.  In other words, Government Debt is repaid, one way or another through Taxes or Devalued Currency!

The Canadian Federal Government, has Spent Borrowed Money prior to and since the Covid Pandemic, taking us further into Debt. The Feds have an Annual Deficit of $380 Billion dollars, with a Total Federal Debt of roughly $1.2 Trillion Dollars, on which we will pay at least $36 Billion in Annual Interest.

This is what a Socialist Government does. It tries to spend our way to riches, and it just doesn’t work as the taxpayer has to eventually pay the piper!

Their perceived new Recovery Plan may add another $50 Billion of Debt with nil returns.

This money will eventually have to be repaid by Taxpayers, taking away Private Investment Capital, reducing our ability to Grow Wealth and our Standard of Living.

I want to illustrate what happens around the world by using Dubai as an example.

Banks provide Credit based on the Ability of Companies to be Profitable, and Based on their Growing Equity.

They understood how Profits and the Expansion of Credit works, which is not taught in our schools today.

Once you have completed one project, you create 2 more, and the next year 4 more and soon it is 8 more and then 16 more towers, which are continually filled with workers, which you need from other countries, who are happy to come to Dubai for a job and a better lifestyle. 

It is all based on Profits and Credit and Bank Trust Demonstrated on the Ability to Create Profits.

In Dubai, there is a minimum of restriction, it’s “let’s get it done”, it’s an Attitude, how can we do it better and faster, not how can we put up roadblocks, and worry about climate change, etc. 

I am not saying that is how we want to develop Canada, but it illustrates what is possible!!

The same applies to China, except China had the advantage of having received more than $10 Trillion Dollars in Positive Trade Balances from other countries, over the last 20 years. You can do a lot with that kind of money and cheap labor.

I digress, Singapore has done an even better job of managing their economy, with a GDP per person of $65,000, relative to $63,000 in the U.S. compared to Canada of $46,000 U.S. Dollars. 

Singapore is an island nation of less than 6 million people whereas Canada is expansive with significant natural resources. 

Government Regulation Restricts Canada’s Development. It is also Reflected in our Lower Family incomes and in our Reduced Opportunity and Standard of Living.

In Canada we have Regulations and about 1 public employee for every 3 in the private sector. 

It is the job of the public employee to find roadblocks to the private sector through regulation, legislation, approvals, and rules. 



It is a negative approach. It could take 5-7 years to get approval to build a condominium tower in Toronto or the GTA. And for a pipeline, it could be forever!!

How does one create profits and take on the risk over that time period? 

Thus, we have Unaffordable High Prices and Large Mortgages for New Home and Condo owners?

For pipeline and oil developers in Alberta the Regulations and Approval Process has driven investment out of Alberta to other places. One needs to make profits. 

Canada has the skilled workers to do Build the Country. Have a look.

It is time for a Change!

Let’s Open Canada for Business!!!