Canada is facing a productivity problem, one that is intertwined with a personality issue. The country's most valuable company, Shopify, has a CEO who recently responded to a thought experiment with a simple two-word statement: "Good system." The reaction was swift and intense, with the public broadcaster spinning it into a national emergency.
The reaction was not just about Shopify, but also about the proposed measure of weighted voting based on income tax paid. The idea was floated by a stranger, but the media had a field day, portraying the billionaire CEO as out of touch and trying to strip the poor and elderly of their voting rights. However, the real issue at hand was not about the proposal itself, but about how it was perceived and presented by the media.
Shopify's business model is built on empowering entrepreneurs and small businesses, creating new companies and high-paying jobs for Canadians. The company's employees, affectionately known as the "Shopify Mafia," have gone on to build successful startups and contribute to the country's economic growth. Yet, the media and experts focused on the company's size and revenue, rather than its productivity and impact on the economy.
The reaction to Shopify's proposal was a perfect example of Canada's tall poppy syndrome. The country's chattering class is more interested in tearing down successful entrepreneurs than celebrating their achievements. This is a national policy that is damaging to Canada's current and future prosperity. Canadians need to stop cutting down their tall poppies and recognize the value they bring to the economy.
Shopify's CEO, Tobi Lütke, does not run the country, nor does he have the power to write the tax code or make regulatory decisions. The real influencers in Canada are the lobbyists, incumbents, and consultants who thrive in a complex and bureaucratic system. Canada would be better off if entrepreneurs and job creators had more influence, rather than being scrutinized and marginalized.
Canadians need to stop perpetuating the myth that entrepreneurs and successful businesspeople are a threat to equality. In reality, it is the field of stumps created by cutting down the tall poppies that is detrimental to the country's prosperity. It is time for Canada to change its approach and celebrate its successful entrepreneurs, rather than tearing them down.
