Are we heading into a recession?
Re More of same won’t end growing economic
woes, Opinion July 21 The oil industry in Canada never made sense environmentally. Now, it doesn’t make sense economically either.
Last week, Bank of Canada governor Stephen Poloz announced a reduction in interest rates to help stimulate a faltering economy. Our economy is in a recession because our government built it on oil, and collapsing oil prices are now hurting us. The oil industry is not the boon it was once thought to be.
It is time to transition to alternative and “greener” technologies. Wind and solar technologies are improving fast, costs are coming down, and there are lots of well-paid jobs in the field.
Other countries are benefiting from developing green technology. It’s not too late for Canada to become a leader in green technology and benefit economically, but the time to act is now. Dennis Sallans, Whitby I’ll have to agree with Ralph Goodale’s take on Harper’s economic record. What’s Mr. Harper’s experience in economics, again? None in the private sector that I could find. I think Canadians know who is really in over their head. Geoffrey Allen, Markham Will Canada be deep in recession when we vote in the federal election this fall?
Since the 2008 Great Recession, Stephen Harper’s primary economic focus on energy strategies have painted our economy into a corner. Now we find our transnational economic drivers near exhausted. Interest rates are .05 per cent. We are on the precipice of falling into quicksand recessionary territory.
Consider what might have happened had we developed multi-faceted strategies for dynamic, clean-energy manufacturing and 21st century technologies in construction, science, industry and commerce? Would we be so constrained now with lowest possible oil/gas commodity prices? Would our “loonie” be so vulnerable? Would our frivolousness with tax dollars tied to ineffective foreign policies be so committed to 20th century free-market imbecilities?
Harper’s single-minded chess tactics with much of what he mismanages are fast becoming an economically un-manoeuvreable position now on a precarious global stage. And now with Iran’s economic sanctions lifting as result of its deal with the world powers, there’s no chance of a recovery tied to a return to “triple-digit” commodity prices of old. Brian McLaughlin, Saint John, N.B. Like the generals of old fighting their current battle with the outmoded tactics of the last war, so soldiers on the blinkered Bank of Canada governor.
Poloz doesn’t get it that it’s a new economic world where the old saws of lowering interest rates and sinking the dollar do not spur manufacturing.
Industry has flown the Canadian coop, especially in Ontario, the country’s historic engine where sky-high hydro rates, big social tax costs, predatory gas prices (despite an oil glut), unrealistic unions and yet another pension levy have sent big business scampering for the exits.
Unfortunately the Bank of Canada has no thought whatsoever for the average Joe whose mostly imported food and consumer goods are becoming prohibitively expensive due to the low dollar, which is heading to Third World valuations. If this keeps up, you’re going to see these Joes milling in the streets Greek style in what will no longer be Ontariari-ario but Greeko-eeko-ario. Paul Pepperall, Penetanguishene, Ont. Sacrificing the loonie on the altar of self indulgent borrowing is like grasping at straws. Canadians already had the lowest borrowing costs in history. Why go further? This makes no sense and simply casts our dollar into the 70-cent range where anything American will become much too pricey for many of us.
The whole sorry episode makes me feel as if this is a second-class country. This is the last straw for Harper’s Conservatives. I would not consider voting for them in the coming election. Al Truscott, Collingwood, Ont. Finance Minister Joe Oliver is trying to row a boat (Canada) with a large hole in it (the economy). Can he get us to the other side? Only if he jettisons some baggage (over reliance on oil extraction for one) and focuses more on clean energy initiatives and comes up with a way to get our manufacturing sector off life support. And of course I don’t think the Conservatives have it in them.
My fear is the only growth Canada sees for a generation is widespread poverty. Richard Kadziewicz, Scarborough Re Unnecessary interest rate cut won’t help to
boost trade, July 16 Following a reasonable analysis of the recent rate cut by the Bank of Canada, David Olive goes on to question the competence of governor Steve Poloz.
Olive argues that Poloz “was not the obvious choice for the top BoC job,” and, “It’s now clear Poloz has not yet attained a sufficient grasp of markets and global economics required of the central banker of a country that is so thoroughly integrated with the word economy.” But neither of the two previous bank governors, both of whom Olive recognizes as successful, were the obvious choices.
Mr. Poloz has the education and the experience, including global experience, to be a successful bank governor. He and the bank require the confidence of the business community, economic policymakers and Canadians generally to be successful. Mr. Poloz deserves this respect and confidence. David Olive unfairly and unwisely sets the cause of economic policy-making backward. Dale Orr, Toronto