Boosting Canada’s Productivity through Sustainability: The Path to Prosperity

To enhance Canada’s productivity, we must prioritize sustainability through the interconnected pillars of People, Planet, and Prosperity. These principles, explored in previous articles, form the foundation for a more prosperous, efficient, and sustainable future. In this sixth edition, we explore how sustainability drives productivity and economic growth, using examples from previous articles like Ontario’s Ring of Fire and the Cross-Canada Corridor (CCC). By investing in people and the environment, we can increase the productivity for all Canadians.

At its core, productivity is a measure of efficiency—doing more with less. Improved efficiency reduces costs, eliminating unnecessary expenses or time-consuming processes. This principle applies across various sectors: government, business, personal finance, and even the stock market. In earlier discussions, we saw that incorporating sustainability into projects like the Ring of Fire and the CCC led to better economic and social outcomes, increased profits, and improved living standards for Canadians. But sustainability’s impact on productivity extends beyond these examples.

The Role of the Canadian Dollar in Productivity

To understand how sustainability increases productivity, we must first examine how Canada’s economy (and productivity) is linked to the value of the Canadian dollar. The value of the loonie is influenced by global supply and demand. When demand for Canadian goods and services rises, the demand for Canadian dollars increases, strengthening the currency. Conversely, by purchasing Canadian-made goods and services locally, Canadians help reduce the supply of Canadian dollars on the global market by not using Canadian dollars to purchase foreign goods, further stabilizing Canada’s dollar value.

Though individual Canadians have limited control over the money supply, the Bank of Canada plays a key role in managing the economy. Canada’s infrastructure investments—such as those in minerals and clean energy—serve as economic stimulants. By using Canadian products and labor, these investments not only boost productivity but also positively impact the global value of the Canadian dollar. Exporting Canadian resources, like minerals and clean energy, enhances Canada’s presence in the global market, driving up demand for the loonie.

When sustainability is integrated into these projects, it creates a “tailwind” for the Canadian dollar, boosting its value and, in turn, supporting economic growth and productivity. This reinforces the idea that sustainability is not just an environmental or social concern but an economic one as well.

The 100-Mile Diet: A Model for Localized Economic Growth

One of the ways we can enhance productivity is by adopting practices that reduce costs, support local economies, and lower environmental impacts. The “100-mile diet,” (Hope you agree this is a more catchy phrase when compared with the 160 kilometer diet)!? which encourages sourcing food within 100 miles of home, exemplifies this principle. By reducing transportation costs, refrigeration, preservatives, etc, and supporting the economic livelihood of local farmers, the 100-mile diet creates a more sustainable and efficient system. The concept of buying local extends to other sectors of the economy, encouraging Canadians to spend their money on domestic goods and services, thus circulating Canadian dollars within the country. Snd reducing the supply of Canadian dollars when used to by foreign goods.

By spending money on local products, we help strengthen Canada’s economy while reducing our reliance on imports. This not only benefits the environment by cutting down on transportation emissions but also supports Canadian jobs and businesses. Moreover, purchasing Canadian goods helps stabilize the value of the Canadian dollar by reducing the supply of our currency in global markets. In this way, the 100-mile diet concept contributes to both environmental sustainability and economic prosperity.

“Buy Canada”: A Policy for Economic Resilience

Another way to promote Canadian productivity is through a “Buy Canada” policy. Similar to the U.S. “Buy America” initiative in place since the late 1800’s, this policy would require that a significant portion of taxpayer-funded purchases, whether at the federal, provincial, or municipal level, be sourced from Canadian-made products and services. Many countries already implement such policies, recognizing that domestic procurement strengthens their economies and supports local industries.

By prioritizing Canadian content in government procurement, we would keep more Canadian dollars circulating within the economy, reducing reliance on foreign imports. This approach would not only promote economic prosperity but also reduce the external supply of Canadian dollars, stabilizing our currency. A strong Canadian dollar directly correlates to increased productivity, as it enhances our global competitiveness and reduces costs for businesses and consumers alike.

Removing Inter-Provincial Trade Barriers

One of the most perplexing barriers to Canada’s productivity has been the persistence of inter-provincial trade barriers. These trade barriers prevent the free flow of goods and services across provincial borders. By removing these barriers, Canada could unlock its full economic potential, allowing businesses to operate more efficiently and reducing costs for consumers. This would enhance productivity, improve the value of the Canadian dollar, and increase economic growth across the country.

For over 100 years, Canada’s major political parties have failed to address this issue. Yet now, when asking for your vote they’re asking you to believe they are somehow uniquely qualified to solve this important issue. Especially considering that the benefits of free trade between provinces are clear. It’s high time that we remove these obstacles to economic growth and allow Canadian businesses and workers to thrive across the entire country.

The Exponential Impact of Sustainability on Productivity

By consolidating sustainability initiatives such as the Ring of Fire, CCC, the 100-Mile Diet, Buy Canada, and the removal of inter-provincial trade barriers, Canada could experience an exponential increase in productivity. These initiatives not only improve efficiency and support local economies, but they also strengthen the Canadian dollar. A stronger loonie would further boost productivity by improving Canadians’ purchasing power, reducing the costs of imports, increasing the ability of Canada paying its debt and ultimately, lowering your taxes!

Consider how even a modest increase in the Canadian dollar’s value—just 10 percent—could significantly enhance buying power. Imagine how a corresponding reduction in income taxes, say 5 percent, could improve disposable income for individuals. These gains, while difficult to quantify, would undoubtedly have a profound impact on the economy and Canadians’ quality of life.

Conclusion: A Sustainable Future for Canada

In conclusion, embracing sustainability through the pillars of People, Planet, and Prosperity can lead to substantial increases in productivity for Canada. By focusing on environmentally sustainable practices, supporting local industries, and removing barriers to trade, we can create a more efficient, prosperous economy. The ripple effects of these actions—strengthening the Canadian dollar, reducing costs, and improving living standards—demonstrate that sustainability isn’t just good for the environment; it’s good for the economy. By aligning our economic goals with sustainability, Canada can secure a brighter, more prosperous future for all its citizens.