Canada's Economy May Be Stuck in Low Gear for Next Few Years


mentalfloss
#1
Canada's Economy May Be Stuck in Low Gear for Next Few Years

Canadian policy makers have been saying for months that the country’s low-speed economy will kick into higher gear soon as exports and business spending strengthen.

But a Canadian think tank is urging the country’s economic policy chieftains to accept the likelihood that Canada’s slow-growth recovery will continue for the next few years.

Instead of trying to spur growth through monetary or fiscal policy, the Canadian government should focus on helping workers sidelined by economic stagnation, the market-oriented C.D. Howe Institute said in a report released Wednesday.

The think tank’s report comes two weeks after the Bank of Canada acknowledged “serial disappointment” in the global economy, but reaffirmed its expectations global growth will accelerate.

That acceleration is critical for Canada. Its households are burdened with high levels of debt incurred as housing prices surged due to rock-bottom interest rates, and its governments are generally cutting back spending in order to bring their books back to balance.

That means the export sector and Canadian businesses have to take the growth baton from consumers and governments.

When that happens is something beyond the control of the Bank of Canada or the federal government, the C.D. Howe report said.

“An investment revival will require a return of corporate confidence, while a rally in Canadian exports will depend on a strong and sustained foreign recovery,” it noted.

Lower interest rates won’t likely stimulate growth in business spending, since it’s uncertainty, rather than interest rates, that’s holding back their spending, it said.

In addition, lower rates isn’t a suitable response due to the problems associated with very low interest rates–an over-emphasis on particular investments, such as residential housing, a tendency for investors to adopt excessively risky positions in pursuit of higher yields and easier borrowing conditions for over-indebted governments.

Indeed, those problems “may soon present the Bank of Canada with a compelling case for rate increases,” according to the report.

Canadian authorities are in a better position to opt for looser stimulative policy than their counterparts in other advanced economies, it said, but there are compelling arguments against tilting in that direction. One is that fiscal policy is “an ineffective pro-growth policy when the economy is not experiencing a sudden collapse of aggregate demand.”

“Another is the longer-term budgetary challenges that Canadian governments will face over the next few decades as a result of population aging,” the think tank said.

But government can play a role in addressing the damage slow growth is inflicting on the country’s labor force, it said.

“[The] federal and provincial policymakers need to focus less on the standard tools of conventional macroeconomic stabilization – monetary and fiscal policies – and instead focus their attentions on labor-market policies that, if designed well, could alleviate the burden currently being experienced by the unemployed and underemployed,” it said.

C.D. Howe identified three types of policies governments could embrace: increasing income support to unemployed workers; improving labor-market mobility; and enhancing training and skills acquisition.

Canada’s Economy May Be Stuck in Low Gear for Next Few Years - Canada Real Time - WSJ (external - login to view)
 
taxslave
No Party Affiliation
+1
#2
Government could best help by staying out of the way. Nothing slows developement more than government interference. Or worse still government picking the winners and losers.
 
mentalfloss
#3
Yea I would rather take the slow growth than a polluted world but this government can't get anything done right, whether it's the economy or the environment.
 
Corduroy
#4
Quote: Originally Posted by taxslaveView Post

Government could best help by staying out of the way. Nothing slows developement more than government interference. Or worse still government picking the winners and losers.

Citation needed.
 
captain morgan
Bloc Québécois
#5
Quote: Originally Posted by mentalflossView Post

Yea I would rather take the slow growth than a polluted world but this government can't get anything done right, whether it's the economy or the environment.


How do you like the solar panels on your house?... Good and effective, are they?
 
mentalfloss
+2
#6  Top Rated Post
Quote: Originally Posted by captain morganView Post

How do you like the solar panels on your house?... Good and effective, are they?

How do you like your herring?
 
darkbeaver
Republican
+1
#7
Quote: Originally Posted by taxslaveView Post

Government could best help by staying out of the way. Nothing slows developement more than government interference. Or worse still government picking the winners and losers.

Under the terms of NAFTA and it's predecessor FREE TRADE government was effectively assigned a back seat to economic responsibility. What the Canadian economy is experiencing now is corporate license to rape pillage and burn whatever they want so your plea to remove the government from economic responsibility is already a done deal but that's not all under the Trans Pacific and Trans Atlantic proposed trade agreements corporations will assume effective governance of all civil administration. Fascism wins.

Quote: Originally Posted by mentalflossView Post

Yea I would rather take the slow growth than a polluted world but this government can't get anything done right, whether it's the economy or the environment.

What government? The central banks rule and as far as they are concerned things could not be better. Government of the west has effectively been in corporate pockets for more years than you've been alive. Governments only function is as whipping boys, convienient targets for civil displeasure, replaceable parts manufactured in corporate universities.
 
Cliffy
Free Thinker
+2
#8
Quote: Originally Posted by darkbeaverView Post

Under the terms of NAFTA and it's predecessor FREE TRADE government was effectively assigned a back seat to economic responsibility. What the Canadian economy is experiencing now is corporate license to rape pillage and burn whatever they want so your plea to remove the government from economic responsibility is already a done deal but that's not all under the Trans Pacific and Trans Atlantic proposed trade agreements corporations will assume effective governance of all civil administration. Fascism wins.



What government? The central banks rule and as far as they are concerned things could not be better. Government of the west has effectively been in corporate pockets for more years than you've been alive. Governments only function is as whipping boys, convienient targets for civil displeasure, replaceable parts manufactured in corporate universities.

Amazing the number of deluded individuals who still think they live in a democracy where their voice actually is heard. We have been bought and sold for corporate profit, along with our environment and resources, while fools scramble to help them destroy their own lives by poisoning our water, food and air. Time to wake up, pull you heads out of your butts before you choke in your own effluent.
 
coldstream
+2
#9
There is NO hope for a sustained upswing in the Canadian economy under the regime of Free Trade, Free Markets and Monetarism. There is nothing to look forward to but a steady evisceration of the industrial economy.. and polarization of wealth manifested in grotesque enrichment for a few and poverty and despair for everyone else.. and a process of occupation and colonization by political entities associated with Global Free Market Capitalism (through their quislings like Stephen Harper and his former Finance Minister Jim Flaherty).
 
Grievous
No Party Affiliation
+1
#10
Pfft....free trade is awesome.....just don't read the fine print and who will believe.
 
darkbeaver
Republican
#11
Stuck in low gear for a few years! Reverse is what we're stuck in you twit. They can't even honestly inform us about direction. We're getting the infamous gears here voters.
 
Grievous
No Party Affiliation
#12
Quote: Originally Posted by darkbeaverView Post

Stuck in low gear for a few years! Reverse is what we're stuck in you twit. They can't even honestly inform us about direction. We're getting the infamous gears here voters.



Starving are ya?




I bet you do just fine.
 
darkbeaver
Republican
#13
Quote: Originally Posted by GrievousView Post

Starving are ya?
I bet you do just fine.

Starving for action. I bet you"ll do just fine.http://forums.canadiancontent.net/im...cons/icon7.gif
 
Locutus
#14
 
Grievous
No Party Affiliation
+1
#15
Quote: Originally Posted by darkbeaverView Post

Starving for action. I bet you"ll do just fine.http://forums.canadiancontent.net/im...cons/icon7.gif



Can't figure out how to make a buck in this country eh?


Most can....it's called work.


Try it sometime.
 
darkbeaver
Republican
+1
#16
Quote: Originally Posted by GrievousView Post

Can't figure out how to make a buck in this country eh
Most can....it's called work
Try it sometime.

I appreciate your advice. Your contributions to the discussion are greatly respected. Work, yes, I've heard of that, could you elaborate for the members. No doubt you are an expert in the subject, you may even have a full time job. I'm sure we would all benefit from your experience in this matter. Work, I may try that tomorrow after lunch perhaps.
 
Grievous
No Party Affiliation
+1
#17
Quote: Originally Posted by darkbeaverView Post

I appreciate your advice. Your contributions to the discussion are greatly respected. Work, yes, I've heard of that, could you elaborate for the members. No doubt you are an expert in the subject, you may even have a full time job. I'm sure we would all benefit from your experience in this matter. Work, I may try that tomorrow after lunch perhaps.



Tell us all how you have managed to make a living in this oppressive Jewish controlled banking system.


We are all dying to know.


Did you work for it in the fields or invest in the very system you hate?


Do you have investments.....oh where would those be?


Have a mortgage? With what bank?


Owe money, with whom?


Tell us all great one, tell us all.


Most of all, can you be honest?
 
darkbeaver
Republican
+1
#18
Quote: Originally Posted by GrievousView Post

Tell us all how you have managed to make a living in this oppressive Jewish controlled banking system.


We are all dying to know.


Did you work for it in the fields or invest in the very system you hate?


Do you have investments.....oh where would those be?


Have a mortgage? With what bank?


Owe money, with whom?


Tell us all great one, tell us all.


Most of all, can you be honest?

What Jewish controlled banking system?

What would a religion be doing controlling a banking system? You must be stupid to confuse gods work with bankers.

Next
 
Cliffy
Free Thinker
#19
Quote: Originally Posted by darkbeaverView Post

What Jewish controlled banking system?

What would a religion be doing controlling a banking system? You must be stupid to confuse gods work with bankers.

Next

Another bozo who doesn't know the difference between a Zionist and a Jew. I'm beginning to think there is no hope. Thor save us from the terminally ignorant.
 
Grievous
No Party Affiliation
#20
Quote: Originally Posted by darkbeaverView Post

What Jewish controlled banking system?

What would a religion be doing controlling a banking system? You must be stupid to confuse gods work with bankers.

Next



Dodge....how have you made your money?


Ever get a loan, from whom?


Invest in anything? What and with whom?


Use cash? What cash? What note do you use?


Where do you shop? What corporation do you do buissness with.


What bank do you use?


Be honest now.


....or do what you do....glib glob glab and such.
 
gopher
No Party Affiliation
+1
#21
Quote:

Canadian policy makers have been saying for months that the country’s low-speed economy will kick into higher gear soon as exports and business spending strengthen.



Mebbe the Democrats should open up a few branches in the provinces and it'll get the economy to improve like ours.
 
darkbeaver
Republican
#22
Quote: Originally Posted by GrievousView Post

Dodge....how have you made your money?


Ever get a loan, from whom?


Invest in anything? What and with whom?


Use cash? What cash? What note do you use?


Where do you shop? What corporation do you do buissness with.


What bank do you use?


Be honest now.


....or do what you do....glib glob glab and such.

Glib glob glab? Well I see that you have exhausted your argument. I'm sorry but you're not worth my time.
 
Grievous
No Party Affiliation
+1
#23
Quote: Originally Posted by darkbeaverView Post

Glib glob glab? Well I see that you have exhausted your argument. I'm sorry but you're not worth my time.



See, you can't be honest.


You have used the system you rant against.


I'd bet you are a banker.


Glib glob glab.....lol!
 
B00Mer
Republican
#24
Quote: Originally Posted by darkbeaverView Post

Work, I may try that tomorrow after lunch perhaps.

Hope so, I'm tried of paying taxes for the welfare bum immigrants who come to this nation looking for a free ride, then preach their hate towards western ideology.

If the shoe fits..
 
Grievous
No Party Affiliation
+1
#25
Quote: Originally Posted by B00MerView Post

Hope so, I'm tried of paying taxes for the welfare bum immigrants who come to this nation looking for a free ride, then preach their hate towards western ideology.

If the shoe fits..



Trust me, this dude has made his money through banks and investments.


He will never admit it though.....glib glob glab.....lol!
 
B00Mer
Republican
#26
Quote: Originally Posted by GrievousView Post

Trust me, this dude has made his money through banks and investments.

He will never admit it though.....glib glob glab.....lol!

The guy is a troll, toss any thread up on CC and add Israel to the title, and he is like a fly to s h i t.
 
Grievous
No Party Affiliation
#27
Quote: Originally Posted by B00MerView Post

The guy is a troll, toss any thread up on CC and add Israel to the title, and he is like a fly to s h i t.



I don't think he a troll at all.


Just bitter.


Probably a guy who thinks he's real smart but was laughed out of every classroom he's been in.
 
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