Canada’s economic future is more uncertain than in Trump’s America
The article I’m referring to can be found here:
I don’t think Canadians for the most part understand the disaster Canada faces if or when America decides to change course. Because one day like or not America is going to have to change how does business. Will it be under Trump or under someone else. China is dictatorship, like it or not that’s what China is, China does not believe in freedom of speech.
If as an example the United States economy would eventually be taken over by a country like Australia, the U.K or even Germany I don’t think it would be that big a deal. But its a big deal when China takes over the world because they’re under a dictatorial regime and they have differing beliefs in what freedom of speech is.
It’s also important to know that China doesn’t respect intellectual property rights, furthermore along with not respecting intellectual property rights China already imposes tariffs on U.S made goods. Canada already imposes Tariffs on U.S made goods and will charge you a Tariff if you as a Canadian buy a car (partially made in Canada) in the United States.
While imposing tariffs, Canadian politicians have also promised Canadian voters a lot of “free stuff” thus putting pressure on the government to make sure the private sector gives the government enough money for the government to pay the voters off, for the free stuff they promised.
Now personally I don’t believe in government redistributing money, but I’m only one person and if that’s what Canadians want to vote for well that’s on them. But I hope those voters realise that if America changes the course of their economy, Canada better have the flexibility to do the same thing. With all these promises and regulations being made by government Canada is losing it’s flexibility. The Liberals of old knew this instinctively but Bill Morneau as an example doesn’t seem to understand that you can’t add subjectivity to tax code.
When you had subjectivity to the tax code, whether you like it or not businesses will start asking what does that mean? Once businesses start asking that question they’ll raise prices, wait for a legal precedence, cease operations or slowly stop reinvesting. This is why Venezuela is in shambles today, the government taxed and regulated all forms of wealth essentially putting a cap on earning potential which ultimately leaves businesses asking the question why bother starting a business.
So businesses will not exist, period which will make Canada even more reliant on importing finished products. This also reshapes the job market. So with a dwindling manufacturing only the very smart will have high paying jobs, being that the trades are already heavily regulated a person may ask him/herself if getting into the trades in Canada is worth it at all, this could potentially lead to a brain drain the trades as business trades people leave the country also.
Liberals in Canada aren’t supposed to be Leftist, they’re supposed to be centrists, People expect the NDP to be Leftist. The point of being a centrist is to see if government can do a better job than the private sector and if it comes to the attention that government can not do this the government is supposed to get out of an unprofitable business.
That’s how Liberals used to behave, now it appears they’re regulating and taxing everything in Left leaning “we’re the government, and we know what’s best” kind of way. Well be warned Canada, when you take those positions, your economy loses its flexibility so if America ever decides that Trump’s, America first is best for the country Canada better watch out, as government coffers get sucked dry and inflation of the Loonie becomes a grave concern thus putting pressure on the BoC to hike interest rates. When interest rates in Canada are forced to rise with all the debt Canadians are in all I can say is 100 year amortization.
Last thing I want to point out is that Trump stance is MAKE AMERICA GREAT AGAIN! the last time America was great interest rates were market rates. Savers were winners and regulations were at an all time low. If that every happens in America Canada will look extremely unattractive from an investors perspective.