|Global Recession: Recovery of Jobs|
Canada has not outperformed the United States in the last three generations in creating an environment for positive employment conditions as noted in the graph. As a developed economy, member of the G7 Canada was the last to enter the Global Recession and exit first. Our largest trading partner has not been as successful.
The jobless rate has not fallen substantially this year, largely because employers have barely added enough workers to absorb the people just entering the labor force. And even if the economy suddenly expands and starts adding 208,000 jobs a month — as it did in its best year this decade — it would still take 12 years to close the gap between the growing number of American workers and the total available jobs, according to the Brookings Institution’s Hamilton Project.
The United States currency has been losing steam from 2002-2008 against the Canadian dollar. The Euro has been relatively flat in comparison. The sovereign debt crisis in the European Union is pushing nations to end stimulus as negotiated at the Toronto G20 meetings. Canada has agreed to NOT extend the stimulus and will be able to tackle their deficit and national debt as the economic recovery continues. The decision by the United States to tackle the trade imbalance through dollar weakening is helping commodities rise because they are traded in American dollars. Canada has significant exposure in the export of commodities and will benefit from the American policy of QE2.
The Federal Government in Canada has permanently reduced personal and corporate taxes, eliminated tariffs for business to import equipment, increased the rate to 100% on capital cost allowance depreciation for business to upgrade their computers between January 2009 to February 2011 which in turn that will help boost our productivity as we exit the global recession.- Economic Action Plan
The Canadian Federal Government is in negotiations with the European Union on a Free Trade deal that is worth an estimated twelve billion on an annual basis to Canada. Trade with China and India have seen trade irritants be resolved with measurable improvements in the last few years in spite of the SPIN from the media and opposition parties.
Federal debt has grown rapidly during the past decade, in part because of the costs of two wars and a deep recession. In early 2002, the cap was roughly $6 trillion and it has more than doubled since then. In February, the House agreed to increase the ceiling by a 217-212 vote, with all Republicans and 37 Democrats voting against it. - American Debt WSJ
|Economic Action Plan Premiers Two Year Plan|
The Canadian Federal Government in cooperation with the Provincial governments in December 2008 negotiated the largest stimulus program in Canadian history. The same leaders have also decided to have the lowest corporate tax rates in order to spur foreign investment.
The economy and jobs has been the highest priority and the messaging has been successful.
In contrast the American decision in quantitative easing last week will make those non American dollar investments increase in value and will our commodities. The auditor general has praised the efforts of our Federal Government and Civil Servants in executing the stimulus program. The United States did not find similar praise for their massive spending programs.
The Obama victory helped shine a light on Canada on his first foreign trip and our Prime Minister wasted no time in visiting the American media in the honeymoon phase of the Obama administration. Our PM shared our great story on every stage on how we escaped the worst of the global recession and we were open for business and made it a priority to speak up against the buy American policy viewed by many as protectionism.
Canada hosted the Winter Olympics and won the most Gold medal in Olympic history. Our PM hosted the G8-G20 meetings in Canada and publicized our unique story at every international meeting.
What do you think?
US Unemployment Rate Source http://www.bls.gov/cps/prev_yrs.htm