When we look back over the course of the past hundred years it becomes clear that the period 1948-1973 was a golden one for the "developed" countries. Seventy-five per cent of world economic production came from them and 80 per cent of manufactures were exported by them. This was the era of the greatest economic expansion of the century not only in terms of growth but also in terms of the decrease in unemployment: in the United States at its most impressive unemployment was at 2.93 per cent in 1953, in Western Europe the unemployment rate in the 1960s was 1.5 per cent and in Japan it was 1.3 per cent. Technological innovation was central to the advances brought about during this economic golden age.

When it comes to Canada's lousy record in productivity and innovation, the standard prescription of economists is both clear and predictable. They believe unregulated markets are the best way to allocate resources and determine the composition of output. Therefore, to improve efficiency and innovation, simply improve markets: Eliminate "distorting" taxes. Eliminate regulations. Sign more free-trade agreements. Cut "red tape." That will unleash the full potential of the private sector to innovate and optimize, and Canada will become a northern tiger.