Canadian economy BOOMING as oil takes a nosedive
- Thread starter mentalfloss
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I doubt that any of the North American manufacturers are going to thrive (or survive) much longer and that automobile production on this continent is likely doomed.
It's not like it used to be with everything made in house.
Today they are assembly plants and no longer true factories.
There will always be Nor Am assembled vehicles.
Volume is as good as a higher price since production costs have plummeted.
Today they are assembly plants and no longer true factories.
There will always be Nor Am assembled vehicles.
Volume is as good as a higher price since production costs have plummeted.
I wouldn't assume that. Ford has already given up on automobiles. They barely survived the last crisis. GM only survived because the US, Canadian and Ontario governments conspired to save it. Chrysler, the same. They have near-death experiences every half decade or so and their great "guiding hand" just died himself. The looming big crisis is the tarif on "Canadian made" cars (no such thing, really in our integrated economy) and "American made" cars which will result in a 25% increase in their prices. Bye-bye Big Three. No one is going to cooperate to save them in this political climate.
There may be autos assembled here and there in North America but they'll be wearing German, Japanese, Korean and eventually Chinese marques (maybe even Indian) and only a few luxury products that can be assembled for North American labour rates.
Canadian autoworker labour rates are down to reality. 20 some odd bucks an hour. You don't need a skill to assemble a vehicle like once upon a time.
No painters, bodymen, welders, machinists, foundry and so forth.
They never gave up on the Mustang.
Stationwagons with truck tires and AWD are still cars.
No painters, bodymen, welders, machinists, foundry and so forth.
They never gave up on the Mustang.
Stationwagons with truck tires and AWD are still cars.
So, maybe you're right. They can be assembled in Saskatchewan after all when no skills are necessary, anymore.
The glut has been going on for more than 5 years. Take the PR out and oil spill make up for the bulk of the work created and increased 'sales'.
the auto industry has been a government scam from the word go.
Ontario waives business taxes to get then to set up shop there and taxes the shit out of the product and the wages.
Either that or they were the welfare state they are becoming, as in 'tip of the iceberg'. I hear they actually cheered as the top soil blew away because there were no seeds to plant. Something about the 'uppity farmers, . . . getting theirs, . . . .' kind of mentality' that they are still infected with today.
The most widespread economic growth in 14 years
The growth was very widespread, with 19 of 20 economic sectors expanding during the month. That's the broadest expansion the country has seen since the summer of 2004, according to TD Bank senior economist Brian DePratto.
https://www.google.ca/amp/s/m.huffingtonpost.ca/amp/2018/07/31/economy-canada-may-gdp_a_23493193/
The growth was very widespread, with 19 of 20 economic sectors expanding during the month. That's the broadest expansion the country has seen since the summer of 2004, according to TD Bank senior economist Brian DePratto.
https://www.google.ca/amp/s/m.huffingtonpost.ca/amp/2018/07/31/economy-canada-may-gdp_a_23493193/
Been there done that. Can't you read?
"It is unlikely that this pace will be sustained, however," DePratto wrote in a client note. "Just as the recovery from one-off shocks sent activity higher, further negative shocks will help swing the pendulum back in the other direction."
Why didn't you finish the quote?
That, combined with maintenance shutdowns in Canada's oil patch, "should act as headwinds to growth in the coming months," DePratto wrote.
While Canada will likely clock economic growth at a 3.1-per-cent annualized pace in the second quarter of this year, that will slow to a "more sustainable" pace of 1.5 per cent to 2 per cent by the end of this year, DePratto predicted.
Who says being drunk and still being able to drive in a straight line isn't a 'skill' anymore?
Actually rising interest rates in a crumbling economy have caused about a 17% decrease in restaurant and entertainment spending in Ontario.
What be this 'restaurant' thing you speak of? Most of our food comes from the blind corner now the sign has been taken down, . . . again.
So MF being an economist which approach do you think is working better invest in social infrastructure spend until the economy catches up? Lower taxes, deregulate, show confidence in, support, challenge industry to improve with confidence?
My buddy runs several restaurants located at various government tourist traps which, ( also, I should add, because of higher gas prices) are sporting declined attendance numbers. He has buddies who run restaurants all over this area, apparently they all saying the same thing.
So the taxpayer's are supporting the raise in minimum wage, I wonder if Doug heard about it yet? 