Canada is launching a new sovereign wealth fund, but what exactly is it, and why is Prime Minister Mark Carney betting big on it?

In this episode of Classonomics, Mike Moffatt and Meredith Martin break down the proposed Canada Strong Fund, how sovereign wealth funds work, and why comparisons to Norway’s famous $2 trillion oil fund may not tell the full story. They explore whether debt-financed infrastructure investing can actually grow the economy, why critics are calling it a “sovereign debt fund,” and what this could mean for housing, ports, transit, energy infrastructure, and future generations of Canadians.

Topics covered:
• What sovereign wealth funds actually are
• How Norway built its trillion-dollar oil fund
• Why Canada is creating the Canada Strong Fund
• The debate over debt-financed infrastructure
• How infrastructure investment affects housing and economic growth
• The risks, criticisms, and unanswered questions surrounding the fund

Chapters:

00:00 Introduction to Sovereign Wealth Funds

00:41 What is a Sovereign Wealth Fund?

01:29 Norway’s Two Sovereign Wealth Funds Explained

03:19 Why Norway Created a Second Fund

05:13 How Canada’s Fund Differs From Norway’s

06:28 Criticism Over Debt Financing

08:22 Will the Fund Benefit Future Generations?

09:58 Why the Announcement Confused Canadians

12:03 Final Thoughts And Outro

Research/links:

The Canada Strong Fund: Nation-Building or State Venture Capitalism?

https://www.asiapacific.ca/publication/canada-strong-fund-nation-building-or-state-venture-capitalism

What Canada can learn from Norway's Sovereign Wealth Fund

https://www.mjemcgill.com/articles/what-canada-can-learn-from-norways-sovereign-wealth-fund

Our pension funds must be sovereign wealth funds, too – even if pensioners take a hit

https://www.theglobeandmail.com/business/commentary/article-our-pension-funds-must-be-sovereign-wealth-funds-too-even-if/

Canada's spring budget projects economy to grow and deficit to fall

https://www.bbc.com/news/articles/cz0278zyznjo

Neither Norway nor Singapore: Decoding Canada’s new sovereign wealth fund

https://globalnews.ca/news/11825911/norway-singapore-canada-sovereign-wealth-fund/

Hosted by Mike Moffatt & Cara Stern & Sabrina Maddeaux

Produced by Meredith Martin

Funded by the Neptis Foundation https://neptis.org/