Canada added 46,200 Mostly Public Sector Jobs in December 2019 – January 17, 2019,
According to the article, I’ll post below, education and health care, as well as construction, which in Canada are either Public Sector or partially public sector jobs were added to a Canadian economy that’s currently, deficit spending at a historic rate. Making matters worse is that there’s a housing shortage, a housing mortgage bubble, historic consumer debt levels, rising food prices, rising rent prices in almost every single major Canadian city.
Also, on April 1, 2020, it won’t be an April fool’s joke when Canadians see the new price of gas. For Canada’s sake, let’s hope a socialist doesn’t win the U.S 2020 election because any downturn in the U.S economy will expose the horrible Canadian economy Justin Trudeau created. Probably the best thing to happen to Trudeau’s price on carbon plan is Donald Trumps Pro-Oil policies which has been a positive for American consumers.
I remind the reader of this article of oil prices under Obama. Love him or hate him I remind the reader, that oil prices are low because of Donald’s hardline stance on oil producers all over the world. In the event, a Democrat replaces Donald Trump, a lot of things the world economy is taking for granted right now, will disappear overnight. Do not count out the Democrats in the U.S election, Hilary Clinton did get 3 million more votes than Donald Trump.
Many of the Democrat-run States are disasters and many democrat voters are moving to the Republican States like Texas. Many of these Democrat voters didn’t have jobs and were indeed on Welfare and would like to have that welfare state in the Republican States. Now, although on the surface this doesn’t seem like a big deal, but because of Justin Trudeau’s economic policies, he’s put Canada in debt in a time when paying down the deficit would have been cheaper. Interest rates are already near zero, socialism is expensive and if a Democrat wins the Presidency the market is going to demand compensation for a growing U.S Public Sector.
Even if you like policies of Bernie Sanders, what he’s proposing for the U.S economy is very expensive and the markets will have to price it in, now I don’t know maybe the Federal Reserve can work some magic? But, if America’s creditors call in the debt or demand to be compensated for Socialist U.S President similar to when Obama was President there could be a correction of sorts and typically when there’s a correction, people will flood into the dollar.
A rising Canadian dollar would be a disaster for the Canadian economy as valuations would have to be adjusted with Justin Trudeau a PM, worst than that and the likely scenario will be a devalued Canadian dollar, which will hit Canadian consumers very hard, because now more than ever Canada is increasingly dependent on imports. The job gains in case people missed it, were not in manufacturing, weren’t in energy, the job gains were in the public sector and the reason why the gains are in the public sector is that the Canadian Private Sector isn’t competitive.
We’ve already priced certain manufacturing companies out of business in Canada, taking that income tx paying jobs with them, there’s a war Trudeau has waged on Canada’s Oil and Gas industry, those high-income tax-paying jobs are still stagnant and if you’re a believer that tech jobs are the future of the Canadian economy, ok sure, but remember that tech jobs don’t have entry-level positions, you have to be a smart individual to work for a tech firm, so similar to California, the rich will be fine in Canada, but the poor are going to find things more challenging.
Interesting times ahead