Why Canada Is Losing Out Canadian analysts are criticizing government policies for driving out talented people and causing firms to relocate to other countries. One of the primary culprits, say observers, is high tax rates. While the Dow Jones Industrial Average has more than tripled since 1989, the Toronto Stock Exchange average has increased just 70 percent. Unemployment in Canada hovers between 9 percent and 10 percent, and experts calculate that Canadian factories are 20 percent less productive than their U.S. counterparts.
Analysts note that some Canadian provinces have cut taxes.
But they say that the prospect for reductions at the federal level does not look promising.