The international recession is deepening, and its pace is growing faster. There is no way that Canada, with its reliance on exports to the US and on commodities and autos for its economy, can avoid this.
The speed of the drop is catching people by surprise (although they should not be surprised); as shown in the enormous job losses in the USA in 2008:
“More US workers lost jobs last year than in any year since World War II, with employers axing 2.6 million posts and 524,000 in December alone. The US jobless rate rose to 7.2% in December, the highest in 16 years. Companies are cutting jobs as consumers reduce spending, amid fears the world's biggest economy will be in recession for a long time. US President-elect Barack Obama said that the situation is dire and action is urgently needed to help the economy. "Clearly the situation is dire. It is deteriorating and it demands urgent and immediate action," he told a news conference. He added that he was making good progress on in talks with Congress on a new stimulus package - estimated to cost $800bn (£526bn).”
http://news.bbc.co.uk/1/hi/business/7820164.stm
Note that ominous statistic: 2.6 million jobs lost last year, more than any year since WW II.
Anyone still believe that the foot-dragging, ideology-fixated, mean-spirited Tory government will come up with a budget which anticipates (rather than lags) developments, and rivals the US steps to protect its citizens?
If the Liberals and NDP support a Tory budget which looks over its shoulder at past events, and does not clearly and unmistakeably address the looming crisis, than those parties will have failed Canadians.
Friday, January 09, 2009
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1 comments:
It is unfortunate but it is looking more and more like Iggy will support Harper. Iggy made clear that he is in favour of tax cuts (granted for lower income Canadians) when many progressive economists (including Nobel Laureate Paul Krugman) are pressing for more stimulus spending instead of tax cuts (even for low and middle income folks). This will give Harper cover for more tax cuts and Iggy can say he was successful in shaping the budget which he will try and claim as a victory for Libs.
Pretty sure that the NDP has been focusing more targeted spending and greening the economy.
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