Tag: Canadian economy

How Canada Can Win the Economic War With The US

President Trump has announced tariffs of 25% on all imports from Canada, except for oil, where the tariff is only 10%. Some of President Trump’s musings also include the idea of an economic war which will lead to Canada begging to join the US as the “51st State”.

Canadian politicians have responded by counter tariffs, exposing their lack of imagination. In such a trade war, Canada cannot win.

An alternative approach would be to build Canada’s domestic economy. Continue reading “How Canada Can Win the Economic War With The US”

Canada’s 2018 budget: virtue signaling all the way

Canada’s 2018 budget was released on February 26th.  It projects an estimated deficit of $17.8 billion for 2018.  In subsequent years the budget deficit is expected to decrease, but only to $13 billion.

Canada’s economy is currently strong.  Unemployment is at record lows and GDP growth is as high as could be expected.

Conventional Keynesian economics would expect a budget surplus under these conditions.  Admittedly the budget deficit is lower than had been expected a year ago due to the strong economy.  This was seen as a signal for the Trudeau government to increase spending and introduce new programs.

Continue reading “Canada’s 2018 budget: virtue signaling all the way”