Current state of Canada....I could go on, as must of use could. I am one am not a fan of the liberals right now. What other choice in federal politics do we really have? End result is another round of mediocre politics courtesy of Jean. The problem is the liberals and their pork barrel policies are in a majority position, thus ends the debate. Result liberals, everyone else 0. Even if your an MP for arguments sake you have to tow the party line, or else say goodbye to your party status, thus no funding for you next reelection go around besides independent sources. We need a leader, who can stir this country. At present time who is it? Jean, McDonough, Harper, and ????
John, you mentioned health care in Canada. The crunch is coming, and in many cases already here. The largest demographic cohort is our parents generation, which is why the system is getting rocked by sky-rocketing expenditures. Can we afford to cover their expenses when they reach their senior and beyond years with a smaller population that paying into the system? Also giving the fact our parents generation is by far the wealthiest demographic group should they be really getting a break in any form of subsidies? Right or wrong, it should be looked at. They funding formula between the feds and provinces has to be looked at. We all want lower taxes but at what expense? Something has to give.
Canadians should take pride in our strong and properly funded public health care and education systems, a clean environment, fair taxes and fair trade, but these are being chipped at. Its time to get back to what we are, Canada has always been on the left on the political spectrum.
Even now more so then ever since September 11 our economic future is moving towards further north-American integration. Can it come without a risk to our sovereignty?
The events of September 11th provide an example of the price for aligning closer with our neighbour, pressure we will surely feel in the months to come. Instead of our familiar tendency to be spectators to the events south of the border, We blindly sent in our forces. Which are already as often pointed out underfunded, ill-equipped.
As for the our declining Lonnie, I would adhere to Anne Golden:
"In loonies, we should trust"
By ANNE GOLDEN
As the value of the Lonnie sinks to record lows, we again hear the chorus calling for Canada to dispense with our currency and adopt the American dollar. Proponents present this approach as a simple "quick fix" with the benefits of ending uncertainty about our dollar's value, thereby strengthening investor confidence, reducing transaction costs and encouraging improved productivity and stronger economic growth over the long term.
A serious consideration of the issue, however, like the Conference Board's recently published analysis, Can You Spare a Buck: The Case For and Against a Single North American Currency, shows that adopting the greenback is neither simple nor necessarily a "fix."
To evaluate the proposal to discard the loonie, we need to understand why it has fallen to almost 62 cents (U.S.). The Conference Board's view is that the gap between the loonie and the greenback reflects, first and foremost, the long-term widening gap in productivity (output per hour worked) on average between Canadian and U.S. industry.
A second contributing factor is the long-term decline in real commodity prices like oil, lumber, newsprint and metals. Because we are a small country -- but a big trader with a relatively large resource-based economy -- we are more affected by raw-material price changes than the United States.
An additional factor, beyond our control, is the magnet effect exerted by the burgeoning U.S. economy in the past decade on the world's increasingly mobile capital. Consequently, the U.S. dollar appreciated against every major currency, the loonie being no exception. Increased uncertainty in global capital markets since Sept. 11 has reinforced this trend, and pushed the loonie to its 62-cent low.
In essence, the flexibility in the rate of our dollar is an adjustment mechanism. Like a shock absorber that cushions the impact of the bumps and potholes in the road, our floating dollar allows us to spread out, over time, the impact on output and employment from fluctuations in the market caused by changes in productivity performance, swings in raw-materials prices, or changes in international flows of money.
None of these reasons leads logically to the conclusion that we must jettison the Canadian dollar. If the loonie has dropped mainly due to relatively poorer productivity performance in Canada and long-term declines in real commodity prices, would adopting the U.S. dollar help us?
The answer is clearly no in the short term. There is some validity to the argument that over the longer term, monetary union could help us address the productivity issue. But it would not shield us from the effects of commodity price shocks or swings in international capital flows.
Proponents of a currency union with the U.S. are often reluctant to be clear about the consequences. The real motive underlying their proposal is a "tough love" argument to force Canadians to become more competitive. They are saying, in essence, that Canada needs to become more disciplined and confront head-on the impact of economic shocks or less competitive economic performance. By taking monetary policy out of the hands of Canadians, this discipline would be imposed. Instead of the current Canadian approach, which seeks to temper the adjustment shocks, we would experience rapid and disruptive production and job losses, which now occur far more gradually.
But the real issue at stake is sovereignty. By adopting the U.S. dollar, we would relinquish a critical policy tool for managing our economy. It is improbable that the U.S. Federal Reserve would grant Canada a voice at the table for the purposes of making monetary policy, simply because we adopted the U.S. dollar. And without political accountability, it is implausible that most Canadians would knowingly surrender their ability to make monetary policy.
Monetary policy cannot be separated from political sovereignty. Any decision to enter a currency union without acknowledging the political consequences is putting the cart before the horse.
Canada does not need to adopt the U.S. dollar -- not now, and probably not for a long time, if ever. Given that the maintenance of a separate national currency has been synonymous, historically, with political independence, such a decision would be a momentous step for Canada, with major implications for our continued existence as an independent nation.
The example of the European monetary union, often cited by those who argue the merits of a single currency, is not a persuasive model for North America. It is important to recognize that circumstances are quite different in Europe -- the economies are of a relatively similar size, for one thing -- and the motivation for European integration was primarily political.
There is no quick fix for our weakened Canadian currency. The best way for Canada to strengthen its dollar is through improved performance by fulfilling our potential for productivity and innovation. At the same time, we must invest appropriately in the quality-of-life elements of Canadian society that make us attractive to investors. This course will enhance our global competitiveness. This is the course we should follow. "
Anne Golden is president and CEO of the Conference Board of Canada.
