Canada’s Lost Decade

Chart of the Week #54

Last week, I told you about Canada's new prime minister, Mark Carney, and his $2 trillion climate crusade. But honestly, Canada’s economic problems didn’t start with Carney—they’ve been brewing for nearly a decade under policies that prioritize ideology over prosperity. Just take a look at this week’s chart below.

From 1995 to 2015, Canada and the U.S. tracked each other almost perfectly in real GDP per capita growth. Both countries weathered the dot-com crash, both recovered, and both navigated the 2008 financial crisis with relatively similar outcomes.

Then something changed.

Since Justin Trudeau took office in November 2015, Canada's economy has essentially flatlined. While the U.S. economy surged ahead—growing its real GDP per capita by roughly 20% since 2015—Canada has stagnated at the same level for nearly a decade.

Think about that for a moment. For nine years, the average Canadian has seen zero improvement in their standard of living.

So, what went wrong?

The answer lies in a toxic combination of anti-business policies, regulatory overreach, and ideological economics. Trudeau's government has systematically attacked Canada's most productive sectors—energy, mining, and manufacturing—while piling on carbon taxes, regulatory burdens, and virtue-signaling policies that sound good in Ottawa but destroy wealth in the real world.

And with Carney now in charge—bringing climate zealotry and a top-down agenda to Canada’s economy—things are about to get much worse.

Have a great rest of your weekend!

Lau Vegys