The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.
Thomas Homer-Dixon is director of the Waterloo Institute for Complexity and Innovation and CIGI Chair of Global Systems at the Balsillie School of International Affairs in Waterloo, Ont.
Ontario, we’re told, is Canada’s new rust belt. The high dollar is pummelling the province’s exports. Big manufacturers are fleeing. The Liberal government is slashing spending to maintain the province’s credit rating. And to top it off, it’s wasting money promoting green energy. There’s just one problem with this pop wisdom: It’s largely nonsense.
Ontario certainly faces huge challenges. Its main trading partner – the United States – is only now emerging from the economic doldrums that followed the 2008-09 financial crisis. And since that crisis, the world economy has been struggling with depressed consumer demand, wary investors and aggressive deleveraging by households, businesses and governments.
Ontario wasn’t ready for this new reality. From the early 1990s to the mid-2000s, a weak loonie made Ontario’s products artificially competitive outside Canada, so companies deferred investment in new factories and technologies.