Archive for February 2009
Where did Canadians learn economics?
Today the Canadian Autoworkers Union seconded Layton’s “buy Canadian” idea. Honestly, has our country gone mad? Harper (being the only economist among our country’s leaders) sees like anyone who has taken Econ 101 should: long into the future. I understand that people are worried about themselves as Canadians, but what about the future of our economy and its relationship with the rest of the trading world? This would no doubt instigate a trade war among the most powerful nations, and we would all lose dramatically. The bulk of our goods are imported, and the bulk of what we create is exported. We survive off of commodities (particularly oil, at over 50% alone), and if other nations decide to drop trade relations for, say, our commodities, we would not survive.
Just as a reminder, the Smoot-Harley Tariff Act was signed into law on June 17, 1930. This act raised tariffs on thousands of imports to record levels in order to promote domestic products. Economist after economist opposed this legislation, and many countries retaliated by doing the same thing. Naturally, imports and exports decreased by more than half. This act is argued to have instigated the Great Depression. It’s no wonder why our economist Prime Minister is against such legislation. History has taught us, and some important people haven’t learned from it.
Finally!
There has been much talk and fear regarding the “Buy American” rule imbedded in the economic stimulus legislation that was passed by Congress last week and is now being read by the Senate. Not to get too far off of my topic, Obama today announced that, being a world trade leader, no such language will be included in the legislation in an effort to avoid trade wars.
In Canada today, the budget passed, with amendments made to the budget by the liberals passing along with it. Only the Blocs and the NDP (and 6 Liberal MPs from Nova Scotia) voted against it. This, however, was not even the best part! During question period, NDP leader Jack Layton stood up, and said that it would be a good idea for Canada to have a “Buy Canadian” clause in its economic stimulus package! Naturally, Harper stood up and, being world trade leaders also, openly rejected this idea. I honestly believe that Harper (being an economist himself) had to choke back remarks towards Layton on this subject.
The first thing that I thought when I heard this bit of news: finally! The NDP show their true colours! We less ignorant bunch know that these types of ideas are at the heart of their economic policies, and it was about time one of them slipped up and showed how horribly bad their understanding and use of economics is.
I am so glad it was the leader of the federal NDP. It’s about time the country sees what he truly believes in: bad economics and instigating trade wars (if he even realizes that that is what would happen if such legislation was passed). Bottom line: the NDP are irresponsible, and cannot be trusted to run a hot dog stand.
