Housing Extreme Canada
According to a report from BMO Capital Markets, residential and non-residential construction accounts for 13.4% of Canadian GDP and is well beyond the 30 year average of 10.4%.
The U.S. reliance on construction is only 5.8% of GDP and at the top of their housing bubble in 2006 was only 9.4%.
The reliance on this volatile cyclical sector shows up in the employment data where 9.7% of Canadian workers are employed.
“Any time you get to extremes on almost any measure of the economy, you have to start asking serious questions,” said Doug Porter, chief economist at BMO Capital Markets “Has something fundamental changed to justify this, or is it an accident waiting to happen?”
History, Charts & Curated Readings
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense