Canada's Economy, Explained

In this special back-to-basics episode of Canada’s Economy, Explained, host Marwa Abdou cuts through the alphabet soup of GDPs, CPIs, and BoC rate cuts to tackle the real questions Canadians keep asking.

• Why is it easier to trade with the U.S. than across provinces?
• Why is climate policy so expensive?
• Why are interest rates cooling inflation but putting the freeze on housing?
• Why is youth unemployment so high?
• And what’s really at stake in Mark Carney’s first federal budget?

As James Carville once quipped on the campaign trail, “It’s the economy, stupid” — and more than three decades later, the line still rings true (especially north of the border). Packed with sharp insights and plain-language explanations, this episode unpacks the economic forces shaping our paycheques, prices, and future prosperity — and why, in 2025, it’s still the economy.

This episode was researched and editorially directed by host and executive producer Marwa Abdou, and brought to life in close collaboration with producer Nick Nikitaras, who led its creative direction and editing.

Once a pillar of middle-class security, affordable homeownership has slipped out of reach for millions of Canadians. But economist Mike Moffatt (Missing Middle Initiative, Smart Prosperity Institute, Ivey Business School at Western University) argues the housing crisis isn’t just about sky-high prices; it’s the result of a system-wide failure.

In this episode, Moffatt joins host Marwa Abdou to trace how that failure emerged from the collision of well-meaning but clashing policies: greenbelts that preserve farmland while choking supply, immigration targets that fuel growth but strain capacity, and zoning laws that shut out the “missing middle” homes families desperately need.

The conversation goes beyond affordability, exploring the so-called “housing theory of everything” — how the effects of broken housing markets ripple through entrepreneurship, fertility rates, and even political stability. From building codes to taxation, Moffatt and Abdou unpack the tough trade-offs ahead and ask: Can Canada fix housing before it undermines our economic future?

This episode was researched and editorially directed by host and executive producer Marwa Abdou, and brought to life in close collaboration with producer Nick Nikitaras, who led its creative direction and editing.

Links:

-  Mike Moffatt, Smart Prosperity Institute

-  Mike Moffatt, Medium  

-  Mike Moffatt, the Hub.ca

-  Mike Moffatt, the Globe and Mail

Canada’s population is retiring earlier and living longer. Even so, the age 65 retirement threshold, inherited from 19th-century Prussia, continues to anchor public policy and social expectations. In this episode, Professor Kevin Milligan (Professor of Economics, University of British Columbia) joins host Marwa Abdou to breakdown how this outdated convention often fails to account for disparities in health and life expectancy across income levels and regions, and how it can unintentionally push the most vulnerable seniors into poverty. In addition, the conversation explores the demographic changes that are at odds with the short-term focus of political planning cycles (which rarely extend beyond five years), and how policies need reform so that Canadians can not only survive in retirement but truly thrive. 

This episode was researched and editorially directed by host and executive producer Marwa Abdou, and brought to life in close collaboration with producer Nick Nikitaras, who led its creative direction and editing.

Links:  

- Kevin Milligan, University of British Columbia, Vancouver School of Economics 

- Kevin Milligan, C.D. Howe Institute 

- Kevin Milligan, Globe and Mail 

- The time of your life: The mortality and longevity of Canadians 

- Retirement incentives and decisions across the income distribution: Evidence in Canada 

- Health and Capacity to Work of Older Canadians: Gender and Regional Dimensions with Tammy Schirle 

- The Evolution of Longevity: Evidence from Canada,” with Tammy Schirle 

Do Canada’s public policies reflect the reality of today’s workers?

Many of the social programs Canadians rely on for economic security were designed in and for a very different era. Built around a mid-20th-century vision of work and family life, programs like Employment Insurance, the Canada Pension Plan, and key parts of our tax system still assume a post-war era worker that is full-time, uninterrupted and unburdened by caregiving.

In this extended episode, Professors Tammy Schirle (Wilfrid Laurier University) and Jennifer Robson (Carleton University) join host Marwa Abdou to unpack how caregiving responsibilities, gender inequities and access barriers collide with outdated policy assumptions. From motherhood penalties to administrative red tape, this conversation examines the hidden gaps shaping Canadians’ financial stability — and what it will take to build a system that works for today’s workforce.

This episode was researched and editorially directed by host and executive producer Marwa Abdou, and brought to life in close collaboration with producer Nick Nikitaras, who led its creative direction and editing.

Links:

- Tammy Schirle, Wilfrid Laurier University
- Jennifer Robson, Carleton University

- Tammy Schirle, C.D. Howe

- Jennifer Robson, Policy Options, IRPP 

- Food insecurity among Canadian adults with disabilities is shockingly high. Here’s what we could do about that.(Robson, 2024)

- State Capacity and Administrative Burdens on Citizens: Time for Export Controls and Transparency (Robson, 2024)

- Finances of the Nation: Federal and Provincial Income Support Programs for Seniors in Canada (Schirle, 2024)

- What Proportion of Tax Returns Could the Canada Revenue Agency Complete? (Genest-Grégoire, Robson et al., 2023)

In this episode of Canada’s Economy, Explained, host Marwa Abdou sits down with Avi Goldfarb—Rotman Chair in Artificial Intelligence and Healthcare at the University of Toronto, and co-author of Prediction Machines and Power and Prediction. 

Goldfarb is one of the world’s leading economists on the business implications of AI. Together, they examine why Canada, despite its early leadership in AI research, is lagging in adoption. Goldfarb explains that AI’s real power isn’t automation—it’s prediction. And while Canada has outstanding academic talent and AI research hubs, it hasn’t yet translated that strength into broad commercial or public-sector impact. “We’re still figuring out what the organization of the future looks like,” he says in the episode, while cautioning that hesitation gives global competitors time to scale. They explore the economic promise of AI in healthcare, education, and public services, as well as the risks of overregulation, particularly with laws like Bill C-27. Goldfarb offers a clear message: Canada must act now or risk falling behind.

Links:

- Avi Goldfarb's Website

- Creative Destruction Lab

- Prediction Machines: The Simple Economics of Artificial Intelligence (2018)

- Power and Prediction: The Disruptive Economics of Artificial Intelligence (2022)
- Machine Intelligence and Human Judgment (IMF - June 2025)

 Other Resources:

 -  Four Battlegrounds: Power in the Age of Artificial Intelligence by Paul Scharre

 -  The Work of the Future: Building Better Jobs in an Age of Intelligent Machines by David Autor, David A. Mindell and Elisabeth B. Reynolds

In this episode of Canada’s Economy, Explained, host Marwa Abdou explores Canada’s pivotal role as G7 and B7 president in 2025 and the country’s opportunity to lead on AI adoption and sustainability. Joining her are Tom Mosseau and Franco Amalfi from Capgemini Canada—a global consulting and technology firm—who break down the challenges and possibilities facing Canadian businesses.

Tom Mosseau points out that “legacy infrastructure, skills shortages, and investment hesitancy” continue to slow down digital transformation, especially for small and medium-sized businesses. While 61% of Canadian firms believe generative AI could reshape their business strategy, only 28% are actively integrating it into operations. Franco Amalfi raises a red flag: AI’s environmental impact is significant, with “high energy consumption, increased e-waste and water use,” yet only 12% of companies are tracking it.

Capgemini calls for a “responsible by design” approach, emphasizing smaller AI models, renewable energy, and sustainable supply chains. The episode closes by highlighting how coordinated public-private collaboration and long-term digital investment can help Canada build a competitive, ethical, and environmentally responsible economy.

Links:
- 2025 B7 Communique
- Key Takeaways from the B7 Summit
- Capgemini – Data & AI
- Capgemini – Developing sustainable Gen AI
- Prompting Productivity Report

In this episode of Canada’s Economy, Explained, host Marwa Abdou brings us insights from the inaugural Business Data Lab conference, The Case for Canada.

Trust—once the invisible foundation of commerce and governance—is now fractured, with only 62% of Canadians expressing moderate or high trust in institutions, according to Edelman’s Trust Barometer. Former Statistics Canada Chief Anil Arora opened with a strong statement: “Good data...is an investment in building trust.”

The episode features a range of voices from the conference: Economist Stephen Tapp unpacks how growing regulation has cut Canada’s GDP by nearly 2%, while Professor Meredith Lilly contrasts Canada’s emotionally charged trade strategy with Mexico’s pragmatic diplomacy. Dr. Chad Bown from the Peterson Institute (and former Chief Economist in the U.S. Department of State), explains the contradictions in U.S. tariff policy and its real implications for Canada.

Andrew DiCapua, Economist at the Chamber of Commerce, offers a sobering reminder that inflation’s lasting impact continues to erode public trust in central banks, calling for more clarity and transparency in policy decisions.

The thread tying it all together? Canada’s future prosperity hinges on restoring institutional trust—through better data, clear policy, and principled leadership.

Links:

- 2025 Edelman Trust Barometer 

- World Values Survey

- Regulatory Accumulation, Business Dynamism and Economic Growth in Canada

- The Future of North America’s Economic Relationship

- How Canada Won at Home While America Came First in NAFTA Renegotiations

In this episode of Canada’s Economy, Explained, host Marwa Abdou sits down with Dr. Trevor Tombe, Professor of Economics at the University of Calgary and Director at the School of Public Policy.

Tombe discusses the widening fiscal divide between Canada and the United States and what it means for Canada's economy, trade, and future stability. While Canada’s federal deficit stands at 1.6% of GDP, the U.S. deficit has ballooned to 6.2%, creating real risks for global markets.

Tombe explains that Canada’s debt-to-GDP ratio remains stable and manageable at 42%, compared to over 100% in the U.S. He warns that political dysfunction in Washington is raising borrowing costs which further strains U.S. finances. Meanwhile, Canada must remain vigilant, especially in addressing productivity declines and preparing for rising healthcare costs. Tombe notes, “If historical patterns had continued, Canada’s economy today would be 18% larger.” He also points to a 500% spike in Canadian business uncertainty due to pending U.S. trade decisions.

Enjoy this fascinating episode with insights from a leading Canadian Economist.

Links:

- Business Insights Quarterly Report (Q1 2025)

- Canada-US Trade Tracker Tool
- Trevor Tombe
- Trevor Tombe at TheHub.ca

In this episode, host Marwa Abdou speaks with Dawn Desjardins, Chief Economist at Deloitte Canada, about the country's fragile economic outlook for 2025. Desjardins shares insights from Deloitte’s Calm Before the Storm report, which highlights falling interest rates, stable inflation, and household savings as economic supports — while new U.S. tariffs and slowing immigration policies introduce serious risks.

Desjardins warns that a potential 25% U.S. tariff on Canadian exports could cost the average Canadian over $2,000 annually, while GDP could shrink by 0.8% if Canada retaliates. “Consumer confidence has come down significantly,” she says, adding that businesses are delaying investments due to uncertainty. Labour shortages may ease with reduced immigration, but that could also dampen long-term growth. She also points to productivity issues, housing shortages, and geopolitical uncertainty as compounding pressures.

Despite the turbulence, Desjardins remains cautiously optimistic: “We anticipate this to be a sharp impact on the economy, but a relatively short-lived one.”

Links:

- Deloitte Canada Report

- BDL Business Conditions Terminal

In this episode of Canada’s Economy, Explained, host Marwa Abdou sits down with Dr. Chad P. Bown, Reginald Jones Senior Fellow at the Peterson Institute for International Economics and former Chief Economist at the U.S. Department of State, to examine how new U.S. tariffs could impact Canada’s economy.

Bown explains how Canada’s deep ties to U.S. supply chains leave it exposed to major cost increases, warning that tariffs could “double or triple” production expenses and hit smaller suppliers hardest. He cautions against retaliation, reminding policymakers that “tariffs also cause self-harm.”

The conversation covers why automation limits the return of manufacturing jobs and why Canada’s efforts to diversify trade partners face steep challenges from geography and infrastructure barriers. Bown also shares cautious optimism. While Washington’s direction on trade is confusing even to insiders, he reassures Canadians that “you still have a lot of fans in Washington” and reminds listeners that democratic systems can correct poor policy over time.

Listen to the full conversation to understand why careful, long-term thinking is key to protecting Canada’s economy.

Links:
- Chad Bown 
- "Trade Talks" Podcast
- Canada-US Trade Tracker