3 ms·

> lower investment rates, spend less on R&D, have an ultra-risk averse culture Why do those make it worse? Lower investment rates means less money to lose, R&D

> lower investment rates, spend less on R&D, have an ultra-risk averse culture Why do those make it worse? Lower investment rates means less money to lose, R&D is often trimmed first, and investment should go to lower risk in this kind of environment. And costs shouldn't be much higher than USA. I think the problem is actually the opposite. People say the US is willing to take risks which is why their tech and startup scene is so good. Among the complaints about all other countries trying to work out how to become the "next silicon valley", near the top is almost universally "risk adverse". I think that's backwards though, investments in Canada and other such places in tech startup are very high risk and speculative, because people are just closing their eyes and praying that these fanciful predictions about being the next silicon valley are true and they hit it big, rather than being based on any real evidence or logic. True it's often governments engaging in this reckless risky spending, which seems to make it appear to be "low risk" to other investors. That doesn't make it so though.

Mikeb85 4y ago
Higher investment rate means when prices go down/a recession happens, people invest in new businesses which means a recovery happens quicker and is more robust. Just look at Canada's GDP per capita over time versus the US'. Or the fact our only job growth since the pandemic started has been in government jobs. Our private sector is dying because it's more profitable to simply move money to the US or to put it all into unproductive real estate.
- throwawaylinux 4y ago
  > Higher investment rate means when prices go down/a recession happens, people invest in new businesses which means a recovery happens quicker and is more robust. I mean you have lower rates so the downturn will have a smaller impact in an absolute sense. > Just look at Canada's GDP per capita over time versus the US'. Or the fact our only job growth since the pandemic started has been in government jobs. Our private sector is dying because it's more profitable to simply move money to the US or to put it all into unproductive real estate. Sure. If the downturn has a disproportional impact despite the sector's small size (investment), then it's because it was a far riskier investment than others.
  - Mikeb85 4y ago
    > I mean you have lower rates ??? Ours is at the same as the US... > because it was a far riskier investment than others. Downturns are more about whether or not consumers still spend, which is based on their savings rate and willingness to invest.
    - throwawaylinux 4y ago
      ??? Ours is at the same as the US... "lower investment rates," > Downturns are more about whether or not consumers still spend, which is based on their savings rate and willingness to invest. For tech startups focused on selling to the government, that doesn't really apply. And for those that aim to sell their product internationally it's not specific to the country they are based in.
      - Mikeb85 4y ago
        > "lower investment rates," Higher investment is NEVER a bad thing. We're not talking putting money in the stock market, we're talking willingness to put money to use.
        throwawaylinux 4y ago
        I didn't say it was a bad thing. You said, > Like many other things affecting western countries though, it's worse in Canada since we have lower investment rates And I am asking why that made it worse. Less investment means less investment to lose. Canada could lose 100% of their VC investment and it would have less of an impact in terms of people affected than a small trim in the US.
        Mikeb85 4y ago
        > Less investment means less investment to lose. https://en.wikipedia.org/wiki/Investment_(macroeconomics) https://en.wikipedia.org/wiki/Investment_(macroeconomics) https://archive.unescwa.org/investment-spending https://archive.unescwa.org/investment-spending I think you're thinking of a different definition of "investment". Since this is a discussion of the economy, I'm using the "economics" definition of investment spending. You don't "lose" infrastructure, land, machinery, etc... in a downturn. The point is that Canada spends less of our wealth on things that improve the economy. Half as much as the US (as a % of the economy).

Mikeb85 4y ago

Higher investment rate means when prices go down/a recession happens, people invest in new businesses which means a recovery happens quicker and is more robust. Just look at Canada's GDP per capita over time versus the US'. Or the fact our only job growth since the pandemic started has been in government jobs. Our private sector is dying because it's more profitable to simply move money to the US or to put it all into unproductive real estate.

throwawaylinux 4y ago
> Higher investment rate means when prices go down/a recession happens, people invest in new businesses which means a recovery happens quicker and is more robust. I mean you have lower rates so the downturn will have a smaller impact in an absolute sense. > Just look at Canada's GDP per capita over time versus the US'. Or the fact our only job growth since the pandemic started has been in government jobs. Our private sector is dying because it's more profitable to simply move money to the US or to put it all into unproductive real estate. Sure. If the downturn has a disproportional impact despite the sector's small size (investment), then it's because it was a far riskier investment than others.
- Mikeb85 4y ago
  > I mean you have lower rates ??? Ours is at the same as the US... > because it was a far riskier investment than others. Downturns are more about whether or not consumers still spend, which is based on their savings rate and willingness to invest.
  - throwawaylinux 4y ago
    ??? Ours is at the same as the US... "lower investment rates," > Downturns are more about whether or not consumers still spend, which is based on their savings rate and willingness to invest. For tech startups focused on selling to the government, that doesn't really apply. And for those that aim to sell their product internationally it's not specific to the country they are based in.
    - Mikeb85 4y ago
      > "lower investment rates," Higher investment is NEVER a bad thing. We're not talking putting money in the stock market, we're talking willingness to put money to use.
      - throwawaylinux 4y ago
        I didn't say it was a bad thing. You said, > Like many other things affecting western countries though, it's worse in Canada since we have lower investment rates And I am asking why that made it worse. Less investment means less investment to lose. Canada could lose 100% of their VC investment and it would have less of an impact in terms of people affected than a small trim in the US.
        Mikeb85 4y ago
        > Less investment means less investment to lose. https://en.wikipedia.org/wiki/Investment_(macroeconomics) https://en.wikipedia.org/wiki/Investment_(macroeconomics) https://archive.unescwa.org/investment-spending https://archive.unescwa.org/investment-spending I think you're thinking of a different definition of "investment". Since this is a discussion of the economy, I'm using the "economics" definition of investment spending. You don't "lose" infrastructure, land, machinery, etc... in a downturn. The point is that Canada spends less of our wealth on things that improve the economy. Half as much as the US (as a % of the economy).