Poor Canada!
https://redstate.com/ben-smith/2026/02/21/canada-didnt-expect-to-lose-to-alabama-n2199400
Quote:
"For an ego check, The Globe and Mail travelled to the Deep South to understand how this happened. Immediately, it was obvious Alabama is misunderstood."
https://redstate.com/ben-smith/2026/02/21/canada-didnt-expect-to-lose-to-alabama-n2199400
Quote:
For quick reference, here's a concise summary of the key points and structure:
Title & Subtitle: "How Canada became poorer than Alabama" / "For an overdue wake-up call, The Globe travelled to the Deep South to understand how the state is breaking stereotypes and, at times, looking richer than Canada."
Core Claim: In 20222024 analyses (by economist Trevor Tombe and the IMF), Canada's GDP per capita (adjusted for purchasing power/exchange rates) fell to around or slightly below Alabama's (~US$55,000$58,000 range in recent years, with fluctuations). This shocked many Canadians, given stereotypes of Alabama as "poor" and backward.
Why It Happened:
Canada's rapid population growth (e.g., +2 million in 20232024) dilutes per-capita figures while newcomers take time to boost output.
Alabama has aggressively attracted investment since the 1990s (starting with Mercedes-Benz in 1993), becoming an auto/manufacturing hub (e.g., plants from Mercedes, Honda, Hyundai, Toyota/Mazda; now producing ~1.2 million vehicles/year, close to Ontario's output).
Low taxes, right-to-work laws, fast permitting ("speed to market"), targeted incentives (later reformed to avoid over-straining finances), and marketing ("Made in Alabama") helped.
Huntsville ("Rocket City") leveraged its space/biotech history (e.g., Saturn rockets, HudsonAlpha) to win big projects like Eli Lilly's $6B plant in December 2025.
Alabama's Transformation & Appeal:
From high unemployment in the 1980s to booming sectors (auto, aerospace, biotech, defense like Airbus/Northrop Grumman).
Low unemployment (2.7% vs. Canada's 6.5%), friendly business climate, and lower costs for companies.
Caveats & Dark Side:
GDP per capita isn't everythingit ignores inequality, poverty (Alabama has weak safety nets, poor rural education, life expectancy ~74 years vs. Canada's 82), health care rankings (Alabama near bottom in U.S.), and social factors (e.g., abortion bans, low minimum wage).
Critics (e.g., economist Jim Stanford) note it overstates "wealth" by including corporate profits flowing to the rich, and Canada's immigration surge skews it short-term.
Alabama has visible wealth gaps (e.g., affluent suburbs vs. struggling areas like Woodlawn with underfunded schools).
Lessons for Canada:
Reduce red tape, speed up approvals (e.g., for projects like pipelines), improve competitiveness to attract capital.
Avoid complacencyglobal competition is fierce, and places like Alabama are winning investments that could go to Canada (e.g., pharma to Montreal).
The article calls for a "wake-up call" without fully equating living standards.
The piece is provocative and opinionated in tone (urging Canadians to learn from Alabama's hustle), but it balances praise with criticisms of the state's flaws. If you're looking for related data (e.g., latest GDP figures), sources like Trevor Tombe's analyses on The Hub or IMF/OECD reports are frequently referenced and publicly available. Let me know if you'd like more context on the economic metrics!
