Canada: The Conservatives Have Steered Canada Into a Preventable Recession

  • metta

    Posts: 39107

    Jul 22, 2015 5:31 PM GMT
    The Conservatives Have Steered Canada Into a Preventable Recession


    http://www.huffingtonpost.ca/jerry-dias/canada-self-inflicted-recession_b_7832420.html
  • tj85016

    Posts: 4123

    Jul 22, 2015 5:51 PM GMT
    that's mostly wrong, most of the world is currently in recession

    a lot of Canada's revenue is energy - and worldwide energy demand is down

    oil supplies are at 80 YEAR highs, so there's that problem

    from the EIA:

    20150722_cl3_0.jpg

    no wonder the Reps don't want an Iran deal

    more proof the world is still in recession:

    CAT%20sales_0.jpg
  • rip12

    Posts: 63

    Jul 23, 2015 12:49 AM GMT
    imo the article is a crock - only my opinion

    canada is a commodity driven economy - short and simple - commodities are down (particularly oil but others also) - so of course their economy is down - thats the way it works

    the article seems to suggest that canada should do what the u.s., china, europe, and japan have done and drive themselves into tremendous debt - the verdict is out on exactly what this means to most of the industrialized world - my thought is it isnt going to be pretty

    you cant spend your way to prosperity - nobody wants to hear that but in the end they usually learn its true - and usually the hard way
  • tj85016

    Posts: 4123

    Jul 23, 2015 2:07 AM GMT
    ^^

    yep, Canada and Australia are very similar in that regard

    that's why I posted oil and CAT (mining/earthmoving equipment)

  • Posted by a hidden member.
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    Jul 23, 2015 3:06 AM GMT
    For those who don't know, the author of the article is the president of one of the largest unions in Canada. In May his organization launched advertisements in major cities across Canada targeting the Conservatives, no doubt because of the upcoming election. Neither point was mentioned in the Huffington Post article, of course.

    Canada has a petro-currency so our economy is highly affected by the price of oil. Throw in uncertainties about a Grexit and stock market turmoil in China negatively affecting the world economy and it would hardly be surprising that commodity-driven economies were challenged this year.
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    Jul 23, 2015 3:27 AM GMT


    http://business.financialpost.com/fp-comment/beyond-our-means-government-debt-tops-1-2-trillion-and-spending-is-still-rising

    This is since 2008. The conservs have been in power since 2006 and became a majority gov't 2011. Since 2008 our debt has grown 350 billion, and next week they are cutting cheques for an increased child benefit plan that will cost 3.5 billion more (mind you next April they will claw most of it back from poorer families in their now increased income tax brackets, removing the child tax deduction at the same time, lol.

    There are other problems - we used to have about 2,500 protected lakes and rivers and streams. Now it's about 150.

  • Posted by a hidden member.
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    Jul 23, 2015 3:42 AM GMT
    Small-"C" conservatives were whining about government debt levels when I studied economics in the early 80's and have been doing so ever since. Nothing new there. Despite the revolving door of elected majority governments (Conservative, Liberal and NDP) Ontario still had budget deficits just about every year. Pretty much the same thing with the Federal government.

    The debt levels have had nowhere near the same effect as the value of the Owtro-dollar and the world economy. Fortunately, the banking regulations here went a long way to shielding the Canadian economy from the 2008 world financial meltdown.
  • digger_man

    Posts: 2

    Jul 23, 2015 11:18 PM GMT
    As a Canadian who has lived in both Alberta (big oil) and Ontario (just big), I have to say that the recession that Canada is currently experiencing is very much self-inflicted.
    Yes, our economy is natural resource driven, heavily dependant on oil especially. However, saying that the downturn is because of this is to admit that Mulcair was correct in his "Dutch Disease" comment - sacrificing manufacturing jobs for natural resource development. Such a policy has been pursued by current (and former) governments at the expense of every other industry in Canada - hitting Ontario and Quebec the hardest.
    We should also remember that Harper has stated emphatically that Canada did not experience a recession following 2008 because of the Conservative "expert management" of the economy - to admit that we are in a recession is to state very clearly that the Conservatives cannot manage the economy (which is true). Either we were hard hit by the global collapse in 2008, or Harper lied for years on national television and to millions of Canadians about how incompetent he and his government really is. The government is still denying that Canada is in recession - denial, denial, denial.
    Either way, through policy or deception, the current situation is entirely self-created.
  • tj85016

    Posts: 4123

    Jul 24, 2015 11:01 AM GMT
    ^^

    every big bank in Canada got hit in 2008: RBC, T-D, Bank of Nova Scotia,