I am against the narrative of this as equivalent to, or comparable to the Silicon Valley.
Of course, it is 'good for Toronto' in many ways, there's little doubt.
The Ontario government, during negotiations with Cisco for a juicy corporate subsidy, indicated that salaries are 'very competitive' and that they'd do 'anything to keep it that way'. Literally stating that he wanted to keep us 'poorer' to guarantee the jobs. (Sorry I can't find the reference).
From a certain perspective, it's understandable: Ontario's competitive advantage is 'a lot of decent tech workers with lower pay' so it makes sense to back that, after all, it's what brings the jobs.
But the very thing that provides a nice economic baseline of wealth (compared to most other countries), also severely limits our potential to be competitive in most areas. Basically, a gilded cage.
The problem with Canada's approach to the US and globalism in this manner is that it systematically reduces the ability of Canadian businesses to be competitive at higher levels.
A commenter noted 'that it brings tech jobs and they might go on to make startups' - which is a good point. But this won't likely be the case, paradoxically, the opposite.
Essentially, NAFTA/USMCA makes Canada an economic suburb: nice place, with basic prosperity, but lacking in exceptionalism and the ability to form groups that bring in real profits, excess surpluses, control, power & influence.
It seems like a paradox - shouldn't free trade, migration etc. make Canada more diverse and competitive? But it's not: Since NAFTA and 'globalization' and 'all of these jobs' ... Canada's expenditures on R&D has actually decreased. Have a look [1].
This in particular, is a disaster. Very important to note that public spending on R&D is not that low (i.e. Canada does good research at University level). And it's not so much that Canadian tech companies spend less on R&D' but it's that Canada produces less and less of the companies that naturally spend on R&D i.e. drugs, medical equipment, tech, etc..
Not only that, in the last 30 years, industrial diversity has actually been shrinking! Have a look [2] Canada isn't even in the top group anymore. Not only this, the sophistication of exports has been going down.
So therein lies the paradox: intelligent people keep saying 'these jobs are great, they'll help us move up the ladder', but it's not the case. NAFTA, large scale migration, other artifacts of globalization and Canada's peculiar history have meant that we get to go to a very 'good spot on the ladder' but actually going higher than that gets even harder.
The Canadian economy is increasingly dependent on Natural Resources and Auto Manufacture for export, and internally, it's driven by 'core businesses' like Finance & Insurance (especially mortgages), construction (again housing) and all of the other things that make a civic community work.
Basically, Canada is becoming a 'very well run civic entity' with less and less R&D spending, less economic complexity, less exceptionalism, fewer knowledge-based exports, and ever greater consumption of foreign products and service and it's the natural result of plain vanilla economic liberal policies, applied without really much thought to the special context of the country. Due to Canada's unique history and lack of its own institutional foundations, it means something different for us than say, Sweden. Almost all of Canadian media consumption is American. The vast majority of the products and services we consume are designed and produced elsewhere, usually in the US.
In order to 'get better' I think we might need a new approach, but I don't think that's what Canadians want - I think even popularity, most Canadians just want 'decent jobs, safety, their Toyota and Netflix'. And so a new Google office is perfect for that.
"The Ontario government, during negotiations with Cisco for a juicy corporate subsidy, indicated that salaries are 'very competitive' and that they'd do 'anything to keep it that way'. Literally stating that he wanted to keep us 'poorer' to guarantee the jobs. (Sorry I can't find the reference)."
This was also a point made during the amazon pitch - cheap labour.
I am against the narrative of this as equivalent to, or comparable to the Silicon Valley.
Of course, it is 'good for Toronto' in many ways, there's little doubt.
The Ontario government, during negotiations with Cisco for a juicy corporate subsidy, indicated that salaries are 'very competitive' and that they'd do 'anything to keep it that way'. Literally stating that he wanted to keep us 'poorer' to guarantee the jobs. (Sorry I can't find the reference).
From a certain perspective, it's understandable: Ontario's competitive advantage is 'a lot of decent tech workers with lower pay' so it makes sense to back that, after all, it's what brings the jobs.
But the very thing that provides a nice economic baseline of wealth (compared to most other countries), also severely limits our potential to be competitive in most areas. Basically, a gilded cage.
The problem with Canada's approach to the US and globalism in this manner is that it systematically reduces the ability of Canadian businesses to be competitive at higher levels.
A commenter noted 'that it brings tech jobs and they might go on to make startups' - which is a good point. But this won't likely be the case, paradoxically, the opposite.
Essentially, NAFTA/USMCA makes Canada an economic suburb: nice place, with basic prosperity, but lacking in exceptionalism and the ability to form groups that bring in real profits, excess surpluses, control, power & influence.
It seems like a paradox - shouldn't free trade, migration etc. make Canada more diverse and competitive? But it's not: Since NAFTA and 'globalization' and 'all of these jobs' ... Canada's expenditures on R&D has actually decreased. Have a look [1].
This in particular, is a disaster. Very important to note that public spending on R&D is not that low (i.e. Canada does good research at University level). And it's not so much that Canadian tech companies spend less on R&D' but it's that Canada produces less and less of the companies that naturally spend on R&D i.e. drugs, medical equipment, tech, etc..
Not only that, in the last 30 years, industrial diversity has actually been shrinking! Have a look [2] Canada isn't even in the top group anymore. Not only this, the sophistication of exports has been going down.
So therein lies the paradox: intelligent people keep saying 'these jobs are great, they'll help us move up the ladder', but it's not the case. NAFTA, large scale migration, other artifacts of globalization and Canada's peculiar history have meant that we get to go to a very 'good spot on the ladder' but actually going higher than that gets even harder.
The Canadian economy is increasingly dependent on Natural Resources and Auto Manufacture for export, and internally, it's driven by 'core businesses' like Finance & Insurance (especially mortgages), construction (again housing) and all of the other things that make a civic community work.
Basically, Canada is becoming a 'very well run civic entity' with less and less R&D spending, less economic complexity, less exceptionalism, fewer knowledge-based exports, and ever greater consumption of foreign products and service and it's the natural result of plain vanilla economic liberal policies, applied without really much thought to the special context of the country. Due to Canada's unique history and lack of its own institutional foundations, it means something different for us than say, Sweden. Almost all of Canadian media consumption is American. The vast majority of the products and services we consume are designed and produced elsewhere, usually in the US.
In order to 'get better' I think we might need a new approach, but I don't think that's what Canadians want - I think even popularity, most Canadians just want 'decent jobs, safety, their Toyota and Netflix'. And so a new Google office is perfect for that.
[1] https://policyoptions.irpp.org/magazines/april-2018/will-can...
[2] https://en.wikipedia.org/wiki/List_of_countries_by_economic_...