Canada's Economy Envy of World

[Shady]

Great story from the Seattle Times.

The 20 world leaders at an economic summit in Toronto next weekend will find themselves in a country that has avoided a banking crisis, and where the economy grew at a 6.1 percent annual rate in the first three months of this year. The housing market is hot, and three-quarters of the 400,000 jobs lost in the recession have been recovered.

...

But the nation is recovering from the recession faster than others, and the International Monetary Fund expects Canada to be the only one of the seven major industrialized democracies to return to a budget surplus by 2015.

Canada this month became the first among those democracies to raise interest rates since the global financial crisis began.

George Osborne, Britain's Treasury chief, has vowed to follow Canada's example on deficit reduction. "They brought together the best brains both inside and outside government to carry out a fundamental reassessment of the role of the state," he said in a speech.

Seattle Times

Personally, 2015 is a bit too long to wait before balancing the budget, or returning to surplus. I'd like to see that cut down by at least a year, but ideally two or three. I hope Harper gets pressed a little harder for that.

But overall, things are looking somewhat good.

[Leafless]

But overall, things are looking somewhat good.

What other country in the world has the same advantageous economic relationship with a capitalistic superpower that Canada has?

[fellowtraveller]

Anybody that trades with China.

I'm guessing this OP would not make the cut at rabble.ca

[PIK]

Great story from the Seattle Times.

Personally, 2015 is a bit too long to wait before balancing the budget, or returning to surplus. I'd like to see that cut down by at least a year, but ideally two or three. I hope Harper gets pressed a little harder for that.

But overall, things are looking somewhat good.

I will bet it will be earlier by at least a year.

[BubberMiley]

I guess it's a good thing Harper implemented his socialist stimulus when he did, and didn't listen to the poor demoralized right-wingers who were saying conservatism is dead.

[Shady]

I guess it's a good thing Harper implemented his socialist stimulus when he did, and didn't listen to the poor demoralized right-wingers who were saying conservatism is dead.

Well, I agree that the stimulus was contructed in a much better way than say the American stimulus was. But I wouldn't credit it with doing a whole lot. Our stronger recovery compared to other countries is based more on a sound banking system, and a sound real estate industry.

[Borg]

When the average person has some coins jingling in his pocket after the month end I will believe the recovery has arrived.

Until then, Mr and Mrs Joe Sixpack are still struggling - economists and politicians (most out of touch with reality) talk the talk but the worker (who lives in reality) walks the walk - and he is still hurting.

It is all smoke and mirrors - led by the media and faithfully followed by Canuckleheads who believe everything they read.

Borg

[dre]

When the average person has some coins jingling in his pocket after the month end I will believe the recovery has arrived.

Until then, Mr and Mrs Joe Sixpack are still struggling - economists and politicians (most out of touch with reality) talk the talk but the worker (who lives in reality) walks the walk - and he is still hurting.

It is all smoke and mirrors - led by the media and faithfully followed by Canuckleheads who believe everything they read.

Borg

Until then, Mr and Mrs Joe Sixpack are still struggling

Maybe they should drink less?

[Topaz]

You're right we did avoid a banking crisis but only because Harper help them out. We won't tell the world that, we'll keep it a secret. Those jobs the Harper reports on that they created, yeah, they did, but they are only good til the stimlus action plan comes to an end.

[Moonbox]

You're right we did avoid a banking crisis but only because Harper help them out. We won't tell the world that, we'll keep it a secret. Those jobs the Harper reports on that they created, yeah, they did, but they are only good til the stimlus action plan comes to an end.

Topaz you know absolutely nothing about the Canadian banking system. For years we were criticized for being too conservative etc etc and then lo and behold, the banks across the world start collapsing and Canada is sitting pretty. There are reasons for that, and none of them are the evil Harper conspiracy to keep the Canadian banks from collapsing.

[BubberMiley]

For years we were criticized for being too conservative etc etc and then lo and behold, the banks across the world start collapsing and Canada is sitting pretty.

I think calling the Canadian government's more effective regulatory environment "conservative" is a bit of a misnomer, since it's the conservatives who've fought those regulations every step of the way.

[segnosaur]

You're right we did avoid a banking crisis but only because Harper help them out.

Actually, the federal government did very little to help the banks out. They did purchase some mortgages from the banks, but that wasn't primarily to help the banks (since we didn't have the same problems with our markets that they had in the U.S.) It was to improve credit availability.

The reason our banking system didn't have a crisis is probably because:

- We didn't have as big a 'housing bubble' (overheated prices) as they had in the U.S.

- Regulations keep our banks from taking higher risks

[Moonbox]

I think calling the Canadian government's more effective regulatory environment "conservative" is a bit of a misnomer, since it's the conservatives who've fought those regulations every step of the way.

I know the cons tried to get some reform in the banking industry, but as far as I know they weren't pushing us to drop the stiff requirements for default insurance.

[Shady]

since it's the conservatives who've fought those regulations every step of the way.

That's just not true. In fact, it's very conservative to want people to actually be able to afford a loan before getting one. If you take a look at the problems in America, they can be directly attributed to a more liberal policy. In particular that of the mortgage industry.

[BubberMiley]

That's just not true. ...In particular that of the mortgage industry.

It's nice to see that you admit the Republicans were wrong in moving away from a Canadian-style well regulated banking system. It's sad that many of them (and many Democrats) are still fighting any progress in that regard.

[Keepitsimple]

Budget surplus by 2015? Where's that Kevin Page when you need him. The CBC and The Star used him to make fun of Flaherty and Harper's fiscal projections - saying stopping deficits in 5 years "cannot be believed". Do you think they'll do a more favourable follow-up?

OTTAWA – Canada could shed a total of 1.2 million jobs this year and next, the parliamentary budget watchdog predicts.

Suggesting that Prime Minister Stephen Harper's government has vastly underestimated the impact of the economic recession, Kevin Page says the employment picture is much worse than the federal Conservatives predicted in the January budget.

Page also says the Harper government's claim that it will be able to stop running annual budget deficits in five years cannot be believed. He says that in 2013-14, instead of balancing its books, Ottawa will still run a $16.7 billion deficit, according to those who have seen the independent budget officer's latest findings.

Link: http://www.thestar.com/news/canada/article/661861