00:03:32.440keep the overhead and still stay competitive with very little to work with. Where do those
00:03:41.200dollars come from? Well, they don't. And that's why you see businesses continually leave Canada
00:03:45.980and not come here and not reinvest in Canada. So why productivity goes down is because I don't
00:03:51.800reinvest in technology. I don't reinvest in equipment. I don't reinvest in training.
00:03:56.280Those are all the things that don't make you a more productive society. And by forcing our
00:04:01.320minimum wage up you squeeze out the ability to do that right which ultimately leads to lower wages
00:04:08.100for Canadians so you know I started digging into it and I'm going through it and as I'm going
00:04:14.720through it it's interesting because the output per person from 1980 to 2024 between Canada and
00:04:24.360us is roughly 300 and 385 000 us per person okay right so you know you look over those 14 years
00:04:35.000sorry 24 years um if we would have no sorry 44 years if we would have actually kept pace with
00:04:43.320the us right right that would equate it to another 14 trillion dollars in economic output for canada
00:04:52.040now okay so now when i say i can so this is the interesting part so that's 14 trillion dollars of
00:04:58.680output over 44 years that as we as as we became less productive with americans we weren't producing
00:05:05.960as much per person which equated to 385 000 difference per person and that's when compensation
00:05:15.400started to dip right so all of a sudden we started to make less as canadians than americans
00:05:21.480over this time period so our gap widened right so all of a sudden we are so this is the crazy thing
00:05:27.320if you look at that output and you figure out that it's a 33 uh tax to gdp on it so 33 tax rate
00:05:36.440we would have been able to put into the public revenue fund roughly 4.5 trillion dollars
00:05:44.200wow over the last 40 years so what that does is the government can use that 4.5 trillion dollars
00:05:50.680to now reduce your tax leave more disposal income in your wallet so now create a pension system
00:05:58.360that's actually a pension system so now what happens is your dollars don't go farther or they
00:06:04.520would have gone farther so they could pay you less but you could actually buy more right the dollar
00:06:11.080had better value here in our own country so that's what the americans so if you look at what the
00:06:15.560americans did over the same time period now move that forward so then you go from now so then from
00:06:21.8802024 to 2030 because it's grown so much the gap we're going to fall behind another 224 thousand
00:06:31.440dollars per person in u.s dollars which equates to nine trillion dollars or three trillion that
00:06:38.020we could have used again to benefit our own citizens for tax relief and everything else
00:06:43.120You keep going on. It's crazy. If we look at the 50 years from 1980 to 2030, we're talking roughly about 7.5 lost trillion dollars that we lost that could have gone into our economy and infrastructure and benefit to the citizens.
00:08:56.020Now, we all say we're working a 40-hour workweek.
00:09:00.200But, you know, I know from business I have and I've lived in both, you know, both countries, we do we do not work a 40 hour work week.
00:09:09.000So then that's a challenge. Union contracts, you know, and this is the difference.
00:09:13.700Again, the U.S. and it varies by state. But overall, across the Canada and the United States, we have a 20 percent coverage in unions in Canada and only a 10 percent in the United States.
00:09:24.320Okay. So we have a lot of friction from unions, driving up wages, reducing what can be done on
00:09:30.340the work. Like if you, I'll give you an example. If you go to put an event on at a convention
00:09:35.640center, you have to use the union guys for every single thing. It's a laborious process. You never
00:09:43.380get what you want. And they're paid at a union rate. You wouldn't pay the guy working with you
00:09:49.120to do the same job but that happens in the u.s and and you know honestly a lot of that wage kind
00:09:55.660of forced wage increase that happens in in any environment would probably and and this is what
00:10:02.000we're finding when we're looking at minimum wage if you if you policy direct wages you tend to
00:10:07.880stipe uh you tend to drive them down right because you're driving them too fast and not in line with
00:10:14.060productivity so if you wage increases we all want we want them for our own people i know my businesses
00:10:19.760i don't i don't pay anyone minimum wage i pay everyone above minimum wage because my business
00:10:27.260dictates that i can do that right so everyone's you know makes more than minimum wage of course
00:10:32.700but you know that's because productivity is high and i keep a highly productive team that drives
00:10:39.060my profit margins high enough that i can actually uh pass it down but you know what paul i think
00:10:44.820that we take a look at minimum wage across the country and it's not the independent guys like you
00:10:50.100that should be expected to make these changes take a look at federal employment in this country
00:10:56.100take a look at how many people are employed in health care alone you know wages and unions and
00:11:02.260And major industries and major employment centers in our country are union bound, are heavily endorsed by human rights, work rights, and all of these things that are very important.
00:11:15.540But the pendulum seems to have swung too far at a time where we don't produce enough per person in Canada to make it worthwhile.
00:19:10.740Well, your your your job description won't allow you to do that.
00:19:14.420Well, it's someone, you know, and someone watching this, I don't want to make it sound like I'm against any of these things.
00:19:19.380But what I'm for is I'm for the people who work with me and work around me making more money.
00:19:26.920I don't like the fact that there's almost a twenty thousand dollar divide by what American makes versus a Canadian makes.
00:19:33.000Right. I want Canadians to make as much or more.
00:19:35.900Because you want them to be able to spread their wings in their workplace.
00:19:39.080well the selfish part for me number one from a business perspective i get more productivity
00:19:43.560number two if they work more in the country the output per person grows in canada
00:19:49.560my public service costs my road improvements my my taxes my uh property taxes all those things
00:19:56.520go down right because i can i can generate enough output that i can actually pay tax on it
00:20:02.520and my tax base gets higher i was gonna say that's the one part of the business that's not gonna
00:20:07.880to change you're going to have to pay that no matter what so the closer you can get to that
00:20:12.600line or past it the better everybody does you can give raises you can give more time off if that's
00:20:18.980what people want and we don't want it's interesting because you know uh this has been coming up the
00:20:23.900productivity and the gdp per capita and all these things come up from both uh parties primarily
00:20:29.500i know uh pierre polyev on his podcast uh trips that he's been doing lately has been bringing it
00:20:36.200up on the podcast but i find it interesting he never goes into the root cause today we're going
00:20:42.180into the root cause so the you know this is what kind of tweaked me on it as i've been listening
00:20:45.900to him and he's right our productivity is low yeah i'm not disagreeing with that and once again
00:20:50.880that's not saying canadians are not productive the means and the the system that we've built
00:20:56.400is preventative to us actually getting beyond that how many people do you know would love more
00:21:02.880overtime hours but they're told by the workplace they're not allowed or uh somebody who wants to
00:21:08.400actually do more hours in a week at uh at their own position to kind of grow it they're told no
00:21:16.060no unless you're here for paid hours we can't have you here there's so many rules and regulations
00:21:20.340that keep us less productive right and they do and those are the things the red tape that we
00:21:25.340we constantly talk about red tape commissions to get those rules and everything off you know
00:21:30.360So I really ask if someone, you know, take a look at the comparison between U.S. wages and Canadian wages and then really study it if you're doubting what we're saying.
00:21:39.840Because when you really dig into it, you see it pretty transparent that that's the reason why.
00:21:45.620It becomes, you know, and forcing minimum wage through policy versus productivity is the key element.
00:21:55.440Now, a couple of the other ones, communication styles.