Dismantling the myth of Canada's economic recovery


mentalfloss
#1
A bucket of ice for everyone!


Dismantling the myth of Canada's economic recovery

Ever since the global meltdown of 2008, it's been an article of faith in Canadian economics that we somehow handled the whole mess better than the rest of the world. No banks collapsed. Our recession, while painful, was not nearly as bad as America's. Our deficits were smaller, and will disappear sooner. Not surprisingly, there's a strong political aspect to that smug mindset: Federal Conservatives never tire of claiming credit for this supposedly superior performance.

The argument that Canada outperformed the rest of the world was overstated at the best of times. Even in the early years of recovery, several other countries (including Germany, South Korea, Australia) did much better at protecting employment and rebuilding incomes. But with the rest of the world now gaining serious economic momentum, Canada's boastful claims are increasingly far-fetched. Far from leading, we now lag other countries, and our relative underperformance is getting worse.

This month's dismal jobs report is just the latest evidence confirming Canada's fall from economic grace. In July, 18,000 full-time jobs disappeared (offset by 60,000 new part-time jobs). The official unemployment rate fell by a notch (to 7 per cent). Labour force participation is stuck at its lowest point since 2001. Measured as a share of the working-age population, employment in Canada is hardly better than in the summer of 2009 – the worst point of the recession.

In short, the Canadian labour market is mired in a recession-like funk, five full years after the recovery officially began. Growth and job-creation can't even keep up with population, let alone repair lingering damage from the downturn. The partial progress made during the initial, stimulus-fired years of recovery ground to a halt in 2011. That's when government -- led by Ottawa -- took its foot off the gas, and put it firmly on the fiscal brake.

There's no more potent symbol of our flagging relative standing than the night-and-day contrast between Canada and the U.S. Our neighbours to the south are finally regaining some economic mojo. The U.S. economy created 2.3 million full-time jobs in the last year, while in Canada full-time employment has hardly changed. U.S. GDP grew at a brisk 4 per cent in the second quarter, twice Canada's likely pace (and the U.S. number is likely to be revised upward thanks to strong trade numbers). Since the beginning of 2013, the U.S. unemployment rate has fallen by 1.7 percentage points. Canada's hasn't fallen at all.

There are many causal factors behind this tale of two recoveries. One of them, clearly, is a stark difference in policy stance. U.S. policy-makers have put job-creation at the top of their agenda -- and they've used unconventional tools to achieve it. They are tolerating much larger budget deficits, for much longer, and with near-zero interest rates that's not a problem. Quantitative easing pumps additional purchasing power directly into the economy. A deliberately weak U.S. dollar and other America-first measures have successfully boosted net exports. To be sure, political gridlock in Washington and other dysfunctional aspects of U.S. policy continue to cast shadows over future progress. But the U.S. economy is clearly bouncing back, and at an accelerating pace.

In Canada, in contrast, pious orthodoxy still trumps the need for job-creation. Fiscal policy at the federal level, and most provinces, is obsessed with eliminating deficits as quickly as possible. The Bank of Canada has also stuck to the standard playbook: eschewing quantitative easing, tolerating the painful impact of an overvalued currency, and mostly telling Canadians to "be patient." Ottawa continues to proclaim a boom in natural resource exports as the saviour for all that ails our economy, despite accumulating evidence about the economic and environmental limits to that strategy.

Don't expect Conservative leaders to dial down their self-congratulatory rhetoric. In particular, they will praise to the heavens the imminent balancing of the federal books (likely to be achieved next year, ahead of schedule). But that will be a hollow victory, indeed, if Canadian labour market indicators continue to languish -- while Americans head back to work in droves. And the cognitive dissonance between claims of Canadian economic superiority, and the gritty reality of stagnation and underemployment, will be increasingly apparent to voters as next year's federal election approaches.

Dismantling the myth of Canada's economic recovery | rabble.ca (external - login to view)
Last edited by mentalfloss; Aug 21st, 2014 at 07:13 AM..
 
Most helpful post: The members here have rated this post as best reply.
Walter
+5
#2  Top Rated Post
MF is the president of the self-haters club.


Rabble.ca is a communist rag.
 
captain morgan
Bloc Québécois
+1
#3
Yep, quoting a second rate blog that complains about any and everything is pretty much the bottom of the barrel.

Mind you, I did get a good laugh over the logic and statement that Canada's recovery is a 'myth' because S. Korea, Germany and Australia also were not as deeply impacted as other nations

... More sour grapes from the usual suspect
 
mentalfloss
+1
#4
The article was originally posted on G&M you fools.
 
captain morgan
Bloc Québécois
+2
#5
... In the cartoon section?
 
mentalfloss
#6
The scent of desperation.

Smells kinda cheesy.
 
captain morgan
Bloc Québécois
#7
I think that a few pop-up ads for cheese are at rabble.ca

.. Any thoughts on the ridiculous logic that Canada didn't realize any recovery because Germany's economy wasn't in the crapper?

Really man, that is so pathetic
 
taxslave
No Party Affiliation
+5
#8
And yet the left protest EVERY new major project proposed in Canada and even demand current revenue generators be closed. Gotta wonder about their suck and blow mentality.
 
mentalfloss
#9
Quote: Originally Posted by captain morganView Post

I think that a few pop-up ads for cheese are at rabble.ca

.. Any thoughts on the ridiculous logic that Canada didn't realize any recovery because Germany's economy wasn't in the crapper?

Really man, that is so pathetic

The article did not claim there was no recovery.

Quote: Originally Posted by taxslaveView Post

And yet the left protest EVERY new major project proposed in Canada and even demand current revenue generators be closed. Gotta wonder about their suck and blow mentality.

No, people just expect them to perform better rather than depend entirely on resource extraction.
 
taxslave
No Party Affiliation
#10
Quote: Originally Posted by mentalflossView Post

The article did not claim there was no recovery.



No, people just expect them to perform better rather than depend on oil.

It is not just oil they protest. It is everything that creates jobs other than low paid service jobs and often those get protested as well.
 
Walter
#11
Quote: Originally Posted by mentalflossView Post

The article was originally posted on G&M you fools.

BS. Show a link. And besides, the Gob and Puke is no better than the rabble.
 
IdRatherBeSkiing
+2
#12
Quote: Originally Posted by mentalflossView Post

No, people just expect them to perform better rather than depend entirely on resource extraction.

Hard to do when the provincial govt of Canada's biggest province is so f-u-c-k-e-d up.
 
55Mercury
+1
#13
yeah, by the left..

left right left right left right left _ left
 
captain morgan
Bloc Québécois
+2
#14
Quote: Originally Posted by mentalflossView Post

No, people just expect them to perform better rather than depend entirely on resource extraction.

Great... What's the solution?

Lemme guess.... Someone should invent a new tech that is totally efficient, effective and a renewable energy source, like a perpetual energy machine and then that industry can employ 100's of thousands at really high wages... And then all those poeple will buy new, high tech imaginery cars that don't use any oil, gas, lubricants or plastics and that will employ millions who will in turn invent a new tech that will feed people without having to actually grow food on land that will employ the rest of the globe.

It's so simple!.. How come no body has done this yet?... Where's Harper on this?
 
mentalfloss
-1
#15
No where.

He can't even get the 'regular' economy to function properly.
 
captain morgan
Bloc Québécois
+1
#16
... But still firing on all cylinders and far better than most in the G20.

... Did you get around to inventing that perpetual motion/energy machine yet?
 
DaSleeper
+2
#17
Quote: Originally Posted by captain morganView Post

... But still firing on all cylinders and far better than most in the G20.

... Did you get around to inventing that perpetual motion/energy machine yet?

He has one of those on the dash of his car........close enough....


 
petros
+1
#18
Quote: Originally Posted by taxslaveView Post

And yet the left protest EVERY new major project proposed in Canada and even demand current revenue generators be closed. Gotta wonder about their suck and blow mentality.

One word.

Jealousy.

14,342*jobs posted in Saskatchewan today
 
captain morgan
Bloc Québécois
+3
#19
Quote: Originally Posted by petrosView Post

14,342*jobs posted in Saskatchewan today


... A sure sign of economic stagnation.

Too bad that rabble.ca didn't publish those damning numbers to further their argument on Canada's terrible economy
 
petros
+2
#20
Quote: Originally Posted by captain morganView Post

... A sure sign of economic stagnation.

Too bad that rabble.ca didn't publish those damning numbers to further their argument on Canada's terrible economy

Too bad these jobs are being filled by immigrants rather than emigrants. I have zero pity for those losing their shirts in eastern Canada. Boofricketyhoo.
 
captain morgan
Bloc Québécois
#21
Quote: Originally Posted by petrosView Post

Too bad these jobs are being filled by immigrants rather than emigrants. I have zero pity for those losing their shirts in eastern Canada. Boofricketyhoo.


That is symptomatic of the Flossy's of the World.... They would rather cut off their nose to spite their face and starve in the cold rather than cross the imaginary line they have drawn that requires some form of effort.

It's so predictable it's pathetic
 
mentalfloss
#22
You guys keep mentioning jealousy as if I'm in some financial rut.

I'm doing just fine guys.

Don't lose any sleep over it lol
 
petros
#23
Employment is only for people with balls. Maybe it's for the best they wallow in their tears all while cursing the people who left their families in Asia and Africa to travel 10,000km to "take their jobs".

Quote: Originally Posted by mentalflossView Post

You guys keep mentioning jealousy as if I'm in some financial rut.

I'm doing just fine guys.

Don't lose any sleep over it lol

Where were you singled out?
 
captain morgan
Bloc Québécois
+1
#24
Quote: Originally Posted by petrosView Post

Where were you singled out?


He sees himself as a victim of the Conservative Party.

.. He's fighting the good fight every time he posts this rubbish
 
mentalfloss
#25
You have yet to show this article as rubbish.

I'm waiting..
 
petros
+2
#26
As soon as Trudeau is elected he'll trade the cash cow for magic beans to seed infertile ground and up will pop beans stalks that lead to a mean corporate giant's home and they will steal his magic chicken breaking the financial back of the corporate giant as he falls as a result of cutting down the bean stalk.

In the end all were equally poor without a way to climb out of the hole made when the evil corporate giant crashed to the ground.
 
mentalfloss
-1
#27
It will take a long time to recover from the damage Harper's caused.
 
captain morgan
Bloc Québécois
+1
#28
That damage being?

... You'll need to prove that, m'kay?
 
damngrumpy
No Party Affiliation
#29
The Canadian mosaic has one point there is not a leader in the bunch that can
lead us anywhere. Leadership requires a plan and person who the masses want
to follow and that person needs to be able to communicate inspiration in a way
that people want to dream of possibilities and act on the opportunities out there.
That leadership is lacking.
As for the economy, all the present government has done is paper the walls with
illusions. The problem is most of the other countries have done the same.
Those with the wealth manipulate the economy based on rumor and speculation
much like the gas companies manipulate fuel prices. We are headed for one hell
of a crash if the major players continue this little game. No there is no immediate
cure and Harper did not save us he postponed the harsh reality for another day
 
petros
#30
The Liberal plan to finally develope the west will be carried on by the next PM whomever that may be just like Harper did.
 

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