Forum > Canadian Politics
Canada's Economy Has its Strongest Growth in 17 Years
JMT:
Are Liberals just better at economics? I mean, Conservatives claim to be great with budgeting, but, is that the same thing? Canada seems to be doing better than it ever did under the Harper years, both pre and post great recession. Maybe a bit a deficit to fuel some real growth isn't such a bad thing?
https://beta.theglobeandmail.com/report-on-business/economy/growth/canadas-economic-growth-blows-past-forecasts-in-may/article35826298/?ref=http://www.theglobeandmail.com&
SirJohn:
--- Quote from: jmt18325 on July 28, 2017, 03:03:40 pm ---Are Liberals just better at economics? I mean, Conservatives claim to be great with budgeting, but, is that the same thing? Canada seems to be doing better than it ever did under the Harper years, both pre and post great recession. Maybe a bit a deficit to fuel some real growth isn't such a bad thing?
https://beta.theglobeandmail.com/report-on-business/economy/growth/canadas-economic-growth-blows-past-forecasts-in-may/article35826298/?ref=http://www.theglobeandmail.com&
--- End quote ---
Most of that growth comes from the uptick in world oil and commodity prices - which the Liberals had absolutely nothing to do with. But just as Liberals blamed Harper for declining oil and commodity prices and their impact on the economy I'm sure they'll take credit for that reversal, however temporary it is. Tens of billions in eficit financing doesn't hurt either.
But there's a funny thing about this economic splendor. Canada's stock market basically lags the world. It's the worst performing index among all G7 nations, and something like 97 out of 100 in the world this year. As far as my stock portfolio, which is usually between 70-90% Canadian, it's now about 90% American and European. I just can't find anything in Canada worth investing in. Everything is going down except for commodities and oil, which have been bouncing up and down wildly all year on speculation. The stock market, btw, is not a reflection of the way things were, or are, but where things are expected to go.
I don't claim to be an economic genius, but it seems to me that if masses of new red tape and taxes on industry and bigger government were the way to a better economy, we'd have discovered that by now. It's not. I expect Canada's economy to inevitably tip over as it is strangled by taxes, a burgeoning debt load, and the growth of government regulations which make it hard to start new business, esp those which are in the resources industry. Our dollar shooting up about 10% compared to the US$ is not going to help either. Ontario, in particular, is going to be a disaster as this combination, along with exploding electricity prices and a sudden politically driven increase in the minimum wage drive businesses away.
There was an interesting story in the Post today on the return to fiscal health of Quebec. Quebec began to cast away the big spending ways around the time Ontario began to really zealously embrace them. Now it has budgetary surpluses while Ontario continues to run massive deficits.
JMT:
Just to be clear - while the growth came from health oil and gas returns, it was also broad based through the rest of the economy.
SirJohn:
--- Quote from: jmt18325 on July 28, 2017, 04:06:07 pm ---Just to be clear - while the growth came from health oil and gas returns, it was also broad based through the rest of the economy.
--- End quote ---
I think you'll find a big chunk of the rest is in manufacturers and services SUPPLYING the mining and energy industries, or selling to their employees and families.
JMT:
--- Quote from: SirJohn on July 28, 2017, 06:26:04 pm ---I think you'll find a big chunk of the rest is in manufacturers and services SUPPLYING the mining and energy industries, or selling to their employees and families.
--- End quote ---
I think you'll find I like proof. Toronto's economy is booming.
Navigation
[0] Message Index
[#] Next page
Go to full version