The Globe and Mail sparked a debate when it reported that Canada’s GDP per capita has fallen behind Alabama’s. The comparison rattled Canadians and triggered a wave of criticism about the validity of using GDP per capita as a measure of national prosperity.
Critics argue that GDP is a flawed metric, pointing to legitimate measurement challenges. But these measurement issues affect every country. The question is not whether GDP per capita is perfect but whether Canada’s trend relative to our peers signals deeper problems.
The evidence suggests it does.
