One of the most popular blog posts that I have ever written on this blog over the last 12 years is this one: Canada must become a global superpower. And in this post, I argue that Canada needs to create a sovereign wealth fund, and that we have Norway to look to as a model. This is a topic that is raised semi-frequently in Canada. Just this past week, John Ruffolo, who is the Founder and Managing Partner of Maverix Private Equity, published this opinion piece in the Globe and Mail. Here's an excerpt:
Aging demographics, high taxes, deficits and unproductive wealth trapped in housing mean we simply don’t generate large capital pools for productive assets. Our pension funds, though world-class in size and governance, largely bypass Canadian innovators in favour of global opportunities. Our venture and private equity funds rely heavily on U.S. investors. Our banks, stable by design, avoid the kind of long-term risk capital required to build sovereign industries.
A sovereign wealth fund is not a slush fund. Done properly, it is a professionally managed pool of assets, governed independently, with two purposes: strengthen [Canada] sovereignty and generate long-term returns.
Canada has never had a true national sovereign wealth fund similar to what Norway, Singapore and others have done. That is, we don't have a federal-level, state-owned investment fund built from natural resource surpluses, trade surpluses, or foreign exchange reserves. What we have instead is a provincial SWF called the Alberta Heritage Savings Trust Fund (AHSTF).
Many Albertans will be quick to point out that the province's non-renewable resource revenues should remain that of the province. But let's be clear: this fund has not done what it set out to do. It has failed due to political interference and a governance structure that does not promote long-term thinking.
We know that, for a variety of reasons, more and more people are living alone. As of 2018, single-person households represented about 28% of all households in the US. This is up from 13.1% in 1960.
Here in Canada, single-person households became the predominant household type in 2016 (we're also at 28%) for the first time in Canada's 150+ year history. And the numbers are even higher for some European countries. In Finland, Germany, and Norway, more than 4 in 10 households are single-person.
Part of this has to do with people living longer. In Canada, 42% of people aged 85 or older (and living in a private household) live alone. But part of this is also cultural. Japan has one of the oldest populations in the world, but it doesn't have the highest percentage of single-person households. Although, the number is relatively high and increasing. It's nearly 40%.
Whatever the case may be, you could argue that there appears to be some sort of global trend line toward more people living alone. But here's an important question: Is this a good thing?
