Harper's Christmas Special: The myth of how fortress North America will boost Canadian exports to the U.S.
| December 27, 2010Canada and the new protectionism
When the world plunged into recession in 2008, G20 leaders ostentatiously pledged not to repeat the errors of the 1930s. To hasten economic recovery, they would avoid protectionism and keep trade flowing. Canada's government has been among the loudest voices in this free trade chorus.
This is a gross misreading of actual history. World trade collapsed in the 1930s because of collapsing consumer demand, not protectionism; competitive tariffs were a response to that implosion, not its cause. For the same reason, world trade plunged 12 per cent last year, despite the G20 promises.
New CAW film about the economics of CETA
The CAW has just released a 20-minute video featuring none other than yours truly giving a short lecture about the economics of the proposed Canada-EU free trade agreement (a.k.a. CETA).
This link takes you to the film, which can be downloaded for free and shown at information meetings or any other organizing events.
How to rein in the loonie
March 10 was the day the CEO of Citibank announced his bank was profitable again, igniting a global rally that's boosted stock markets by 50 per cent or more. Unfortunately, it was also the day the loonie began what has become the fastest, biggest upswing in its history.
From 77 cents (U.S.) in March, the loonie has rocketed up 25 per cent, touching almost 96 cents by Friday. It won't be long before our loonie is worth more than the U.S. greenback. That may cause a certain nostalgic smugness among some old-timers (who remember when "a dollar was a dollar"). But it's unequivocally bad news for our economy.