Wednesday, July 15, 2015

Oh Canada

Canada's Conservatives may face unexpected hazard as economy cools | Reuters

Well, seems to me Canada may be displaying the weakness of current conservative economic ideology:
Canada's economic woes, including a struggling manufacturing
sector, tepid jobs and wage growth and weak oil prices, have
been compounded by slowing growth in key trading partners like
the United States and China.

After reveling in Canada's escape from the global financial
crisis, Harper suddenly has less to boast about. But the party
is not likely to back away from campaigning on the economy
"When someone says: 'Are you better off today than four
years ago when this government got its majority mandate?' There
are not many people that are going to answer that question as a
yes," said Jim Stanford, economist at Unifor, Canada's largest
private sector union.
"Whatever sector of the economy you're in, there's a pretty
pervasive sense of insecurity."

Pollster Nanos said research shows the Conservatives are
seen to be good at controlling spending, but they do not have as
strong of a lead on promoting economic growth, which may be
closer to voter hearts than fiscal restraint.

And while Harper is among few Western leaders who can boast
of a balanced budget forecast for 2015-2016 after years of
deficit, union economist Stanford said balanced books may not
pay off at the polls.

"If they had balanced the budget and things were looking up
for the average household, then maybe this claim would have a
bit more credibility but I think it's a pretty hollow victory."
A lot of the blame is put on falling oil prices.   Guess we can see the same happening here eventually with falling coal and iron prices.

Diversity in an economy helps:  seems to me that governments that wipe their hands completely of having policies to encourage diversity are asking for trouble.

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