According to the latest data, Canada is experiencing an investment crisis. Policymakers in Ottawa have been slow to respond, despite some isolated warnings from key players including the Bank of Canada’s senior deputy governor. But unless investment improves, particularly in assets that enhance productivity, household incomes in Canada will continue to stagnate or even decline.

What’s the problem?

To increase productivity (and ultimately, incomes) workers require key assets including computers, software, machinery, equipment, intellectual property, and research and development. The OECD groups these types of assets into two categories—communication technology equipment (ICT), and intellectual property products (IPP).

From 1990 to 2010, investment in ICT (as a share of total investment) in Canada was 12.6 percent and 14.5 percent in the United States compared to 10.1 percent in Canada and 16.6 percent in the U.S. from 2010 to 2021 (the latest year of comparable data). In other words, investment declined in Canada yet increased in the U.S.

The comparison is even less favourable for Canada when it comes to IPP. From 1990 to 2010, investment in IPP (again, as a share of total investment) was 13.2 percent in Canada and 22 percent in the U.S. compared to 12.7 percent in Canada and 22.5 percent in the U.S. from 2010 to 2021.

Clearly, Canada’s shortfall relative to the U.S. in productivity-enhancing investments has worsened since 2010, and it’s not a new phenomenon. Conversely, however, Canada has consistently outperformed the U.S. on investment in residential dwellings (i.e. homebuilding). From 1990 to 2010, investment in homebuilding (as a share of total investment) was 27 percent in Canada and 21 percent in the U.S. compared to 32.6 percent in Canada and 17 percent in the U.S. from 2010 to 2021.

Obviously, people need housing, and Canada’s rapid population growth has substantially increased the demand for housing with a resulting dramatic appreciation in average home prices. From 2010 to 2022, Canada’s population growth rate, largely driven by increased immigration, was about twice that of the U.S.

But here’s the rub—in Canada, tax and regulatory policies, which favour of investment in homebuilding, may have stunted business investment in productivity-enhancing assets.

For example, government regulation has made business loans costlier compared to loans to households for housing-related investments. And when the Trudeau government recently increased the capital gains tax, it maintained the tax-free status of capital gains on owner-occupied homes. Here again, government policy favours investments in homes relative to ICT and IPP. And the waterfall of recent government subsidies and tax credits for homebuilding and home purchases will further tilt economic incentives away from investments in ICT and IPP.

It’s not surprising that politicians respond to the demand for more affordable housing by directing large direct and indirect subsidies to the housing sector. However, they should remember that housing affordability is essentially a ratio of average unit costs to average household income. Housing subsidies may reduce average housing costs, but if scarce financial capital is diverted away from investments in productivity-enhancing assets, average household incomes will stagnate or even decline in real terms. In short, you can’t separate housing affordability from productivity growth.

If policymakers want to reverse these troubling trends and meaningfully address Canada’s business investment crisis, they must enact policy reforms that make Canada more attractive to investors—not just homebuyers.

There are several ways conservative-minded Canadians would say Pierre Poilievre has changed the Conservative Party of Canada for the better. One of them is his embrace of “true blue” leadership.

While the Merriam-Webster dictionary defines “true blue” as a term for “genuine,” a precise definition of true-blue conservatism can be hard to come by.

The conservative coalition comprises people who elevate different principles and priorities and of course it has evolved a bit over time. But in basic terms, there’s broad agreement: a true-blue conservative is someone who believes in smaller, more limited government, supports free enterprise, and has a patriotic view of Canadian history and a clear sense of the country’s national interests.

Poilievre embodies this conception of Canadian conservatism. He has grown up in the movement and now personifies its aspirations. His true-blue leadership has helped close the ideological gap between parts of the small “c” world and the big “C” Conservative Party. The success of his political approach is manifested in strong poll numbers and declining support for Maxime Bernier’s People’s Party of Canada. It has also meant “small-c” movement conservatives stepping up to run as Conservative Party candidates.

Many of these “movement conservatives” are well-known figures within Canada’s conservative movement even if they’re not household names. They may not be Bay Street lawyers or former provincial cabinet ministers. But they’re seen as star candidates by grassroots conservatives. They’re broadcasters, social media commentators, columnists, and civil liberties advocates. They’ve often been called outspoken, independent-minded, unapologetic, and even edgy. They boast online followings larger than some cabinet ministers. They’re also all under 50. For most, it’s their first foray into politics.

Here are some of the movement conservatives running with Poilievre.

Jamil Jivani

Jivani, a Yale-educated lawyer and author of the book Why Young Men: Rage, Race and the Crisis of Identity, has been a key figure in movement conservatism in recent years through, among other things, his regular columns in the National Post, his provocative iHeartRadio show, and as president of the Canada Strong and Free Network.

He’s also known for his close friendship with Republican vice-presidential candidate JD Vance.

Last year he sought the Conservative nomination in Durham, Ont., replacing former party leader Erin O’Toole. This March, he was elected to Parliament in a byelection, winning the riding with the largest margin in 20 years.

Jivani has over 42,000 followers on X.

Aaron Gunn

Gunn, a longtime activist, is running for the Conservatives in B.C.’s North Island-Powell River. He’s known for founding the Canadian Taxpayers Federation’s “Generation Screwed” initiative, for his online commentaries for BC Proud, and for his Politics Explained video series, including the impactful documentary Vancouver is Dying, which laid bare the violent crime and drug abuse residents of that city are enduring.

Gunn has over 117,000 followers on Facebook, over 42,000 followers on X, and over 19,000 followers on Instagram.