6 ms·

> 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 robus

> 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).
        throwawaylinux 4y ago
        Well this started by talking about investment (e.g., from VC) in the software sector which carries very little infrastructure, so I don't know what you're talking about now. That may explain why you were saying costs are very high when wages are typically far below the US, you don't seem to have been talking about the same thing.
        Mikeb85 4y ago
        VC is the type of grassroots investment that still can be called "investment" in the economic sense. Ie. you're not looking for immediate returns so any money pumped into startups by VC firms helps the economy whether or not it yields anything. The VC scene in the US will help your recovery since VCs will still be putting money into the system (albeit at lower valuations) meanwhile in Canada it'll completely dry up. And again, this isn't the type of "investing" where you're super concerned about paper losses like, say, the stock market. Also software does count as an economic investment, the same as infrastructure.

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).
      - throwawaylinux 4y ago
        Well this started by talking about investment (e.g., from VC) in the software sector which carries very little infrastructure, so I don't know what you're talking about now. That may explain why you were saying costs are very high when wages are typically far below the US, you don't seem to have been talking about the same thing.
        Mikeb85 4y ago
        VC is the type of grassroots investment that still can be called "investment" in the economic sense. Ie. you're not looking for immediate returns so any money pumped into startups by VC firms helps the economy whether or not it yields anything. The VC scene in the US will help your recovery since VCs will still be putting money into the system (albeit at lower valuations) meanwhile in Canada it'll completely dry up. And again, this isn't the type of "investing" where you're super concerned about paper losses like, say, the stock market. Also software does count as an economic investment, the same as infrastructure.