Description: Carolyn Rogers of the Bank of Canada says Canada needs to improve its productivity, or we could be bracing for a tough period of inflation. Canada lags behind other parts of the world in our investments in plant and equipment, in addition to our comparative deficits in intellectual property. Scotiabank vice-president Derek Holt says that “because essentially workers are getting paid more for producing less, the combined effects . . . are inflationary.”

Date:  March 26, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/bank-of-canada-carolyn-rogers-productivity-1.7155832

Discussion points:

1) Were you familiar with Canada’s productivity problem? Does what you just read concern you as someone soon to graduate?

2) What can Canadians do to reverse the trend?

3) Chapter 13 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the Statement of Cash Flows. Which section of the Statement of Cash Flows shows a company’s investments in both tangible and intangible assets?