Canadian Brain Drain Myth or Reality

1
Canadian Brain DrainMyth or Reality?

• Dr. Paul Terry
• Founder VP RD/CTO
• Abatis Systems CorporationOctober 14th 1999

2
Canada Some Facts

• Canada is the 2nd largest country in the world, ¼
  covered in forest
• Population approx. 30M, GDP US570bn
• 85 of Canadians live within 200 miles of the US
  border
• Canada shares the longest border in the world
  with the US
• The US is the worlds ONLY Superpower
• Technology, military power, commercial might
• US GDP US7434 (13x Canada)
• 82 of Canadas economy depends on
  imports/exports cf. US 24
• Canadians are paranoid low self esteem
• Why arent Canadians Americans ?

3
Are Canadians Americans ?

• There is a HUGE geographical and cultural
  difference between the Canadians and the
  Americans
• The Canadians have built a different society
• Canadians regard the US as the 3 Gs
• Guns, Ghettos and Gated Communities
• Americans rejected the British (18 century)
• Canadians is a constitutional monarchy
• There seems to be universal acceptance in Canada
  of
• Publicly funded health service
• Affordable education
• All Canadians are MIDDLE CLASS

Whats the Price of Being Different ?
4
The Price of Being Different

• 84 US Cents
• 1999 68 US Cents

Why
The cost of being Canadian is rising
Resource based economy Pump Oil Dam
Rivers Fell Trees Grow wheat Harvest
fish Worlds largest exporter of Zinc,
Uranium, potash, asbestos Timber, pulp,
newsprint one of the largest exporter of fish
The world commodity market is devaluing currency
Employment 5 Resource/Agriculture16
Manufacturing.75 Service Based
5
Are People Leaving?
Yes. Of course theyre leaving!
Numbers In the US approx 500k
Canadians Rate of departure prob.
2000/year Mid-career types high education
6
Are People Arriving
YES ! Unquestionably Canada is the place for
Europeans to Emigrate

• Canada has/is
• Proximity to America
• 2nd highest GDP in the G7 countries
• Low inflation, low interest rates, low
  unemployment
• Has a financial surplus
• Points system of entry (c.f. Americas quota
  system)
• Is recognised by the UN as the highest quality
  of life in the world
• Is recognised as the safest place to live in the
  world
• Has the lowest cost of living in the G7
• Is the most ethnically diverse country in the
  world

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Brain Gain or Brain Drain
Lowest cost of living in G7
Low inflation
Low interest rates
Low Taxes
Is immigration gt emigration ?
High Salary
Highest quality of life in the world
Safest place in the world
Maintains a caring society
Stats Canada publish ratio of 41
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Income and Taxes
What to do about

• Indirect Tax
• Personal Income Tax
• Corporate Tax
• Capital Gains Tax

Ratio of High Tech Sales to RD is 131
9
Conclusions

• Canadians are leaving immigrants are arriving
• Canada is an awesome place to live
• Canada is in a fantastic position to milk the
  Americans
• This cant happen under the present fiscal
  policy
• Need investment in Knowledge based industries
• Improve investment savings spending
• Need SUPPLY SIDE economics
• Capital gains tax needs to be abolished
• Personal income tax lowered (not radically)
• Corporation tax lowered (not radically)
• Extract lots of US from the rich neighbour
• Position Canada as a clean, healthy, IP Paradise