You just wrote off a third of Canada’s GDP.
As well as a huge chunk of power generation, and a key transportation hub, a huge amount of food production, fuel processing etc. R&D hubs, specialist companies etc as well. Also GM, Ford, Toyota etc are all in that region.
Not sure why people think it's a net draw; there aren't 5M people sitting idle with their thumbs up their ass. Not the manufacturing powerhouse of the 70s, but doesn't mean there isn't still a lot of stuff being made and processed. Not cranking out a million widgets but the ones left are high quality and high tech.
- Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period.
- GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.
Gross domestic product is the monetary value of all finished goods and services made within a country during a specific period.
www.investopedia.com
Part of the problem with this discussion is the use of the GDP.
GDP is influenced by the amount of people buying and selling, the number of transactions and the goods and services they exchange. That can all happen in a closed economy.
As well as a huge chunk of power generation,
Power is generated in southern ontario by southern ontarians for southern ontarians. Some goes to industry, a lot in fact, but some goes to keep lights on and people warm.
and a key transportation hub,
Which like power generation is staffed by southern ontarians for southern ontarians.
a huge amount of food production,
I'll come back to this
Imported fuel which is locally processed for the local market and which produces by products which are used locally and re-exported to the points of origin of the imported fuels.
R&D hubs, specialist companies etc as well.
Very true. A matter of concern to other places in Canada that would like to compete.
Also GM, Ford, Toyota etc are all in that region.
Vehicle production that largely feeds the local market, that was based on international trade agreements and placed where the population was densest, supplying both a labour force and a local market.
Coming back to the food processing - most of the raw material is imported to the GTA - either from within Canada, from the US or overseas. It is then turned into products that suit the local southern ontario market by southern ontarians. Those plants then export those foods back, like the petroleum by products, to those parts of Canada that don't have the production capabilities. In other words back to the point of origin.
Every year, no, every month, I come across another Western entrepreneur who wants to convert local raw materials - grains, pulses, meat, potatoes, beets, berries, milk, eggs into value added goods that can be "exported" within Canada. And they all die. Internal trade barriers. Lack of Capital. Lack of Labour. Lack of Interest from head offices located in the St Lawrence Lowlands.
Although, to be fair, most of those Laurentian head offices are being eaten up by Brazilian, Swiss, German, French, Italian, British and US companies making it harder yet for people outside of the area to get their ideas considered.
The internationals aren't overly concerned about the GDP in the area. Except insofar as it influences how much they can skim from that circulating pool of funds and export back to their banks where they control their home governments and can influence the tax regime.