February 7, 2010

Summary: The Canadian government announced Friday that Canadian companies will be excluded from the protectionist measures within the United States’ 2009 economic stimulus plan. The ‘Buy American’ article of the U.S. stimulus package sparked immediate tensions in Canada, from those who believe economic recovery should be a coordinated effort between Canada and the United States. Though this development is undoubtedly an improvement in the bill, some argue that this measure has come to late, given the amount of American stimulus money that has already been spent.

Excerpt: ‘Canadian companies will be exempt from a protectionist “Buy American” clause in the U.S. government’s $787-billion US economic stimulus package, the federal government announced Friday.’

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February 7 2010

Summary: At the conclusion of this week’s meeting of global finance leaders, it seems clear that the Iqaluit conference has produced more questions than answers. In his closing statements today, Canadian Minister of Finance Jim Flaherty offered general goals on behalf of G7 countries to ensure that economic recovery is not only achieved, but also maintained long-term. Though Flaherty did not offer country-specific details, G7 leaders agreed to continue implementing economic stimulus funds until recovery is deep-rooted.

Excerpt: ‘While there was no shortage of photo opportunities for finance ministers and their central bankers — dogsledding in heavy parkas, or casually clad at a fireside chat — the two-day Group of Seven meeting ended with few words.’

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19th January, 2010

Summary: The recent bail-out of major banks by federal governments is causing some to call for restrictions on executives’ pay. Those who run the Montreal Economics Institute are wary of such proposals. They believe that government inteference will reduce the effectiveness of a free market for executives.

Excerpt: “When, under pressure from those critics, governments try to replace supply and demand in setting remuneration by other arbitrary rules, they distort the most important mechanism by which firms can influence the choice of their executives and their overall governance structure.”

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15th January, 2010

Summary: Don Dewees, a professor of economics and law at the University of Toronto, believes that citizens are not paying enough for their electricity. He claims that increasing the price is the only way to promote greener energy generation as well as pay for new capacity.

Excerpt: “The bottom line is that current electricity prices do not reflect electricity’s environmental effects or the costs of Green Energy Act policies. Reforming pricing so peak period prices reflect environmental costs and the cost of new generation facilities can move us toward an environmentally and financially responsible electricity future.”

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13th January, 2010

Summary: The B.C. First Nations Forestry council has said that it will use the Vancouver Olympic games as an opportunity to showcase the plight of aboriginal people in Canada after being refused millions of dollars in government grants. Gary Mason claims that this attitude is killing the prospects for prosperity in First Nations communities. He praises the independent economic efforts of some Native communities and calls for the end to economically stifling “dependency spending.”

Excerpt: “Let’s face it: Dependency spending doesn’t work. That’s surely been proved by now. And many of the more enlightened native leaders in Canada understand that. The way to halt the cycle of welfare addiction, with the societal and health-related issues it promotes, is through the stability provided by economic independence.”

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Monday January 11, 2010

Summary: Canada’s Minister of Natural Resources announced today the Canadian government’s planned investment in renewable energy projects as a part of their Economic Action Plan. The 146 million dollars worth of investments in solar, wind, tidal, and geothermal energy projects are expected to stimulate the economy through job creation. These efforts are also inspired by Canada’s efforts to reduce greenhouse gas emissions.

Excerpt: “Funding of up to $146 million will support the demonstration of renewable and clean energy across the country, including integrated community energy solutions, smart grid technology, and renewable applications with solar, wind, tidal and geothermal energy.”

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Monday, January 11 2010

Summary: In a statement today, the Bank of Canada has acknowledged that it will not raise interest rates in response to a boom of activity in the housing market. Critics are concerned that the low interest rates that have encouraged such activity will cause buyers to purchase houses they will not be able to afford once rates rise in the future. The Bank of Canada’s deputy governor, Timothy Lane, though acknowledging such concern, insists that increasing rates to dampen growth in one sector of the Canadian economy could have harmful effects on the economy’s other industries.

Excerpt: “Deputy governor says such a move would also negatively affect the broader economy as it emerges from recession.”

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Friday December 25, 2009

Summary : World Leaders at the Pittsburg Summit on Friday announced that the G20 will supplant the G8 for governing economic issues.  Responsibilities of economic coordination and major global economic decisions, which has been served by the Group of Eight during the last three decades, are now being transferred to the G20. This decision reflects previous concerns about the G8 not representing many of the major emerging economies including China, India, and Brazil. ”[The G20] will be better able to tackle issues of global gridlock because all the protagonists are at the table”, Harper said. That same day, South Korean President Myung-bak Lee and Harper announced that the two countries will be co-hosting and co-chairing the next G20 summit in June 2010.

Excerpt : [...] the G8 has historically been the dominant body for discussions on peace and security issues, as well as international development. “We we believe those discussions should continue,” Harper said, “but the G20 will now take the lead on economic matters.”

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Tuesday December 28th, 2009

Summary: Recently the PM has come under fire for his policies toward China and climate change. While some criticize the PM, Preston Manning insists that the PM has done a good job balancing Canadian interests in China and Copenhagen. According to Manning, this more honest approach is preferable to the often hypocritical one of past Liberal administrations.

Excerpt: “So, has Prime Minister Stephen Harper made any progress toward this lofty goal in his recent visits to China and Copenhagen? He most definitely has – and should receive full credit for doing so.”

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Tuesday December 22, 2009

Summary: In the midst of substantial government deficits, Ontario’s government is considering selling some of its assets like the Liquor Control Board and the Lottery and Gaming Corporation. Hugh Mackenzie believes this would be a mistake. According to him, fiscal deficits are long-term issues which can’t be solved by selling assets. Further, such sales would deprive the government of important future revenue and influence in public policy.

Excerpt: “Asset sales do nothing to address whatever long-term fiscal issues Ontario may have to deal with once we have recovered from the great recession of 2008. And they impose significant long-term costs to the public interest in the province.”

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