“It’s not going down a few per cent, it’s down 53% per cent” says O’Leary in BNN interview.
O’Leary Financial Group founder Kevin O’Leary is issuing a warning as direct investment into Canada continues to fall.
In an interview with BNN, O’Leary pointed out that the scale of the investment collapse is immense:
“Direct investment in Canada is collapsing. It’s not going down a few per cent, it’s down 53 per cent. And, that means this is not a choice for either Canadian or international investors. The big surprise is how fast it’s happening. It’s really, really accelerating and I think this should be a bi-partisan discussion with Canadian politicians.”
As noted by BNN, between July 2017 and November 2017, the outside purchases of Canadian securities averaged $18.4 billion per month. In the first month of 2018, that fell to just $5.68 billion.
O’Leary also made the point that Canada has lots of potential benefits for investors, but competitive policies are needed:
“What do we have to do to be competitive? We don’t need the lowest tax rates. There’s a lot of merits Canada has that no other country has. We need competitive tax rates and competitive policy.”
O’Leary rips carbon tax
The increasingly unpopular carbon tax is also a serious problem says O’Leary:
“Another problem for us? That carbon tax… Nobody has it. You don’t put money here when you’re getting whacked with a tax no one else has.”
Additionally, O’Leary says the investment collapse is going to start being felt by all of us:
“These matters don’t matter to the average Canadian until it affects their job. What I’m suggesting is the rate of loss of capital is accelerating. You can ignore it until you can’t ignore it.”
O’Leary’s warning should be heeded by the government, yet they have shown no willingness to listen to those who criticize their policies. That was made obvious when Trudeau and Morneau pushed a 2018 budget that focused almost exclusively on ‘gender’ and ‘diversity’ virtue-signalling, while doing nothing to address the investment collapse or the rapidly-growing gap in our competitive position with the United States.