The new World where we live

How often have we heard about the effect on the economy as a result of the aging baby boomers? ie. (the growing proportion of the population that will not be paying taxes moving forward or paying fewer taxes than they have in the past)

The key to surviving this deficit is to get people to be more effective at their jobs, which in turn will earn them more money, which in turn means that they will pay more taxes.  So, how do we do this?

We need to focus and support businesses and industries that are aligned to this model.  It means supporting many more smaller industries in technology and custom services which is a departure from the traditional money invested in mass manufacturing jobs that has worked in past generations.

Many believe that there should be no more focus on low skill jobs.  Post-recession, huge incentives to the automotive business were expected to pay greater dividends, increased loyalty and increased investment into Canada.  That has not happened.  Canada is almost at a $.59 dollar and the big automotive companies are still continuing to expand manufacturing into emerging markets because of both low wages as well as targeting the ever-growing wealth of these populations in many of these areas.  The low dollar should encourage manufacturing in Canada (it hasn’t yet) so it is probably important to remember that business that is won on price, can just as easily be lost on price.

Value added products are key and they don’t tend to be mass produced.  More specialized and tailored manufacturing that exceeds customers’ expectations and is delivered in an enjoyable customer format and experience is likely the answer.  This type of product/service experience will allow a company in small town Ontario to defeat a De-specification manufacturing house in Beijing.

Investment and tax incentives need to be re-directed to more types of companies and industries.  It is more difficult to bet on winners and involves more commitment to support entrepreneurs in these areas but what is the alternative?  Continue allocating dollars and support to traditional routes such as automotive or oil and gas?

Farewell,

Mike