In an economy like Canada, which is pretty diversified between manufacturing industries and the other respondents who are expressing their concerns, it is possible that there could be some winners and losers.
Looking at it from the perspective of the aggregate macroeconomic variables, whatever the industries are producing, they have to sell somewhere, and they sell either to the export markets or to domestic markets. A big part of the aggregate amount in Canada is domestic consumption. A considerable amount of income is spent on what Canadians themselves produce. A big part of that, in turn, is consumer goods.
If household incomes are not rising as fast as productivity, that means that there will be a gap in the shares of spending between income earners on wages and profit earners. There's a gap in favour of profits in our simulation, resulting therefore in lower consumption demand. That's because wage earners tend to spend a larger proportion of their income, more than profit earners. That's the basic logic underlying our analysis.