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Opinion: To secure a strong economic future, Canada must choose growth

Decades of coasting on soft power and U.S. proximity have left Canada vulnerable
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Container ships loading at Port of Vancouver container cargo terminal

Canada—suddenly and starkly—is a very small country.

For decades, we have coasted on the perception of being the United States’ little brother—similar, but distinct. We lectured the world on climate change, human rights and progressive ideals, confident that we could always duck behind the U.S. if there was ever real pushback. We neglected hard power, believing that soft power—our reputation as the nice nation with the ear of the United States—would be enough.

In a flash, that illusion is gone.

Today, we stand exposed: A weak country, lacking both soft and hard power, sitting next to the strongest nation on Earth. A nation that is now openly hostile to us.

Our economic narrative—once defined by stability and privileged access to the U.S. market—is in tatters. In a world tilting toward protectionism, our high taxes, excessive regulation and lackluster returns no longer justify investment. What were once our greatest strengths—our safety, our reliability, our access to U.S. markets—are now our biggest vulnerabilities.

But we are not powerless. And we still have incredible potential.

Canada remains rich in natural resources. We have a highly educated workforce waiting to be unleashed. We attract skilled immigrants from around the world, many of whom now see a choice between an unstable Europe, a hostile United States and a Canada at a crossroads.

For too long, we have prioritized voices who wanted to limit Canada’s potential. Opponents of resource development, city building and infrastructure investment have won out over those who wanted to maximize Canada’s potential.

Moving forward, we must choose growth.

Much has been said about interprovincial trade barriers, but the truth is simpler: Canada is too small and too dispersed to sustain an internal market. We are an export-driven economy in a world retreating from trade. The Century Initiative estimates that we need a population of 100 million to achieve a self-sustaining market. That might sound daunting, but it requires just 1.2 per cent annual growth—a rate lower than Canada’s historical norm since Confederation.

Understandably, some worry that rapid population growth could strain our health-care system, worsen housing affordability and overburden infrastructure. These are real challenges that demand real solutions. But history shows that Canada has the capacity to adapt, innovate and expand to meet the needs of a growing population. Rather than obstacles, these are opportunities for Canadians to showcase our economic dynamism, ingenuity and ability to build a more prosperous future.

Millions of people from around the world bringing billions of dollars to Canada can be the driver of our growth.

In contrast, the United States is actively expelling Ukrainian refugees, terrifying hardworking Mexican labourers, and alienating its own scientists and health-care professionals. These are the type of people every country should want, and Canada should embrace them with open arms.

It was the Athenian general and historian Thucydides said that “the strong do what they can and the weak suffer what they must.” We need leadership that says, we can and we must—not we can’t or we won’t. And we need to begin now.

The choice before us is clear: Remain small and suffer what we must, or grow and forge a stronger, more independent Canada.

Canada’s potential remains unlimited. But Canada is not inevitable.

Dan Scarrow is president and CEO of the Macdonald Realty Group of Companies.