Two Economies, With One Set of Flaws: The Economies of Australia and Canada
By Econ
Australia and Canada, even though they’re far apart, actually have a lot in common when it comes to their economies. They both rely a lot on selling commodities like minerals and oil, which can be risky. Also, both countries deal with challenges in their housing markets because of immigration, which drives up prices in big cities. Plus, they’re both trying to figure out how to boost innovation and productivity.
Australia has seen some success with economic reforms that helped its economy grow, while Canada is still figuring out how to deal with its heavy dependence on oil and gas exports. In a world full of uncertainty, both nations are working hard to make the most of their economic strengths while tackling their weaknesses.
Here’s what others had to say:
@Deborah_C1
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
@Tobi_Jones
In Canada our quality of life is plummeting year over year. The government has sold out the working class to the monopolistic corporations. Wage suppression and increased cost of living due to unrestrained immigration. An oversupply of cheap unskilled immigrant labor is good for the corporations and rich, but bad for everyone else.
@threeone6012
Both country’s financial systems depend on their galactic sized housing bubbles to grow faster than their economies… forever.
Some might call that a flaw.
@kingsimba9513
Similar economies, sure. But vastly different levels of prosperity.
Australia’s median wealth per capita (in USD) is approximately $247,000, which is nearly double that of Canada’s $137,000.
Canada also falls behind in other development metrics, such as education, healthcare, income inequality, life expectancy, talent competitiveness, etc. This is despite their incredibly strategic position of being next to the world’s largest economy.
Pretty eye-opening when you think about it.
@sydguitar99
Canada being next to the US is a gift and a curse because they do get the protection and safety of being close to the US but that proximity also means it’s a lot easier for them to lose talent to the US.
@TDK2K
Canada has very little productivity. Current Canadian leadership is incompetent and has not taken advantage of expanding natural resource development. About a third of the entire Canadian economy is the buying and selling real estate.
@00bikeboy
Canadians are clever innovators but we seem to lack the business smarts to sustain world-class businesses. Blackberry had the world by the balls but they blew it. Other great Canadian technology (whose R&D is subsided by taxpayers) are quickly bought out by US firms who are far more willing to take risks. It’s tough to grow in the US’ shadow.
@toni4729
Don’t come to Australia now, the real estate prices have about doubled in the past couple of years. There aren’t enough homes for people anymore. Some suburban houses are outrageously priced now and there are none for new home buyers. Also, it seems there are no builders left either.
@tossed_about
Commodity exporting countries are often looked down upon compared to manufacture based exporting countries. However, you can’t move mining industries overseas to countries where there are no commodities. Manufacturing is notorious for being at the whim of labour costs and being moved to the current lowest cost countries – the latest example being Germany where it’s car manufacturing is being severely impacted by Asian cheaper labour and industrialisation.
@zoeydeu2261
If UK is the motherland, Australia and Canada would be like her children (Commonwealth) and thus siblings to each other. Both similar, just different in terms of weather and geography.
@ramumasankaran4588
Being a resident of both Australia and Canada gives me a clear insight of what Canada can learn from Australia and vice versa. I just wish Canada has a pay scale like that of Australia and that would make Canada more desirable to Australia. That said the Grass is always greener on the other side until you experience it. I love both the countries, but love Australia more for their wine industry, so underrated, but always does magic on your pallet.
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Original source: https://www.youtube.com/watch?v=gu5lPuaZ9Jo