Folks, it’s time to talk about Canada’s gross domestic profit as it relates to you.

What happened: Canada’s per capita GDP (the country’s GDP divided by the population) fell for the second consecutive quarter to close out 2022. The drop, calculated by economist Theo Argitis as 0.7%, is one of the largest quarterly drops ever seen outside of a recession.

Why it matters: GDP per capita is a quick way to measure how the prosperity of a country and the well-being of individuals are trending—a precipitous dip is a worrying indicator of economic health. Plus, Canada is underperforming compared to other advanced economies.

This dip is particularly concerning because Canada’s population grew more than ever over the same period. Foreign migration accounted for ~96% of the one million newcomers last year, most of which were targeted for the express purpose of boosting the economy.

So why the slump? While, in theory, a surge in new workers should equal a surge in productivity, the reality is that many of the highly-skilled labourers Canada welcomed aren’t yet working the jobs they came here to do, thanks to Canada’s strict recertification rules.

• Those with medicine, dentistry, veterinary medicine, and optometry degrees are six times more likely to work in jobs unrelated to their training.
   
• Newcomers also have trouble making land in urban centres (where the high-paying jobs are) due to the high cost of living and a wildly unaffordable housing market. 

Bottom line: “Canada’s population growth is masking deeper economic problems around productivity and competitiveness that continue to threaten our standard of living,” economist Theo Argitis wrote. Not exactly what we wanted to hear heading into the weekend.—QH

It turns out, the next “big space” is literally just more space. 

For many Canadians, storage is the new spare closet. Ontario is seeing the fastest growth, with square footage for self storage growing 9% since 2019. And business is booming: revenue at StorageVault Canada jumped from $11 million in 2015 to $261 million last year.

• Bulky furniture, sports gear, and car tires are among the more popular items that are being put away in Toronto-based Vaultra’s storage units.
   
• Vancouver and Toronto are the hottest markets for self-storage, but U-Haul is also planning a 20,000-square-foot facility in Saint John’s red-hot real estate market.

Why it matters: With the walls closing in on Canadians, we just don’t have enough space for our stuff. In Ontario, the average condo has shrunk in size by 35% in the last 25 years as more units have been squeezed into urban spaces and real estate prices have skyrocketed. 

Self-storage used to be a mom-and-pop business, but the space has consolidated in recent years. StorageVault Canada, for one, spent $241 million on acquisitions last year, and other VC-backed companies are taking the “self” out of self storage to store your stuff for you. 

Zoom out: You can still find more space for your things, but it probably isn’t going to be in your home.—AP

Yesterday, Congress had its first opportunity to grill TikTok CEO Shou Chew about the company’s relationship with its Chinese owner, ByteDance, its handling of US user data, and the risks it may pose to teens. And, well, we knew we were in for some spicy questions.

• Former Vice President Mike Pence asked Chew when he was going to start getting paid for his data, Gus Bilirakis said the app was “literally leading to death,” and  Cathy McMorris Rodgers called it “a weapon by the Chinese Communist Party.”

To carry on in the US under ByteDance’s ownership—China is firmly opposed to a forced sale—TikTok outlined a plan to prevent the Chinese government from accessing US user data or meddling with the algorithm, but it has not been (and likely won’t be) approved. 

• It’s worth noting TikTok doesn't actually operate inside China. ByteDance instead offers a similar version of the app to Chinese users, called Douyin. Even so, the FBI maintains that the Chinese government would have the ability to collect user data.

Why it matters: The app, with its over 150 million users in the US, “has become a battleground in a technological Cold War between the two countries, with US threats of a TikTok ban recalling how China has long blocked many American platforms,” per Axios. 

While it’s nice to see US lawmakers agree on something for the first time since 2016, banning TikTok won’t be easy. The American Civil Liberties Union says the move violates First Amendment rights, and influencers are storming the Capitol in their own trendy way.—SB

💸 $55,972,683. The minimum estimated pricetag that the government spent to host Pope Francis for his six-day tour last summer. Where would you visit with a $55 million budget?  

🚑 $45.5 million. Investment that Québec is putting into the province’s emergency response centres, part of which will go towards enabling 911 to accept texts and video calls. 

🦡 €1.37 billion. Annual income of ProRail, the operator of Dutch railways. It stopped running some trains as badgers (protected animals in the Netherlands) burrow under tracks.

• Listen: It’s all anyone’s been talking about. Find out why Silicon Valley Bank failed and what it means for Canada, from Free Lunch by The Peak.
   
• Charts: The most expensive Airbnb in every country.
   
• Why does everyone hate New York City’s new I ❤️ NY logo?
   
• Hindenburg, the group famous for shorting Gautam Adani, is going after Jack Dorsey.
   
• Duolingo wants to teach you a new language… the language of music!
   
• Science win: Canadian researchers found a new way to get rid of toxic “forever chemicals.”

Pop quiz! Take The Peak’s Weekly News Quiz now.

And while you’re at it, you may as well play the mini-crossword. Just for kicks!