The Canadian Dollar Decline – June 19, 2018
As I’ve written about for months now, I have no idea why the Canadian dollar is even as high as it is now, it doesn’t make sense to me when I look at the numbers. However, as of today $.76, U.S cents could buy you $1 Canadian. Personally, I think $0.65usd for $1 Canadian dollar makes more sense when I look at the charts, debt numbers and anticipated business growth in the Canadian private sector. If Canadians haven’t been paying attention Trudeau’s Liberals as well as other provincial left-leaning political parties in Canada have been ratcheting up regulations on businesses while growing their public sectors.
Public sector workers get some great benefits in comparison to the private sector workers, also government workers are typically in the service sector, government workers don’t really export anything nor is it a public sector employees responsibility to cut inefficient costs of running the government, for a government public sector employee cutting costs to the government, could cost them their jobs, their livelihoods their financial means of survival so similar to Trudeau’s reactions to Trump’s policies it’s in a government employees best interests to make sure things remain just as they are.
In Ontario, Doug Ford a conservative was recently hired and a lot of public sector employees in positions that are vulnerable to be taken over by the private sector are worried they might lose their jobs, well these are the people that hire Liberals and the NDP in the future. If no one explains to them, that without the private sector the public sector can’t flourish well then you get this cycle of conservatives conserving Liberal policies only so a left-leaning party in the future will make things more left-leaning in the next election.
Trump’s stance was to reverse a lot of the left-leaning policies, what this means is that when Trump inevitably leaves the white house if a left-leaning politician takes over they’ll have to do a lot to bring socialist policies back into the public psyche. That’s not the case in Canada, Canadians, for the most part, are sympathetic to the left-leaning school of thought. I’ve even heard so-called Canadian Libertarians argue for entitlements or simply ignore issues that revolve around growing the public sector.
If you look at all the regulations in Canada on the public sector, there really is no use for Unions. We have welfare, we have universal healthcare and most provinces have minimum wages over $11. If you’re wondering why most of these provinces have a difficult time attracting businesses well it’s the costs involved, the property costs, the environmental costs, the shipping costs etc. these costs add up and you combine this with the potential of being looked at as the bad person the moment you accumulate any wealth and you see why manufacturing companies are leaving Canada.
Also, I have to add that the Canadian government’s Liberals, NDP, and Conservative bailout big companies, subsidies big companies, prefer big companies which inevitably leads to small businesses simply doing just enough to survive never really thinking about growth or expansion because to grow equates to more problems, more potential to have your company confiscated by Unions, which means companies that want to grow in Canada typically use employment agencies which have higher costs to employ, but fewer liabilities to hold onto an employee which leads to a rise in part-time workers.
This concept that a private company should take care of an employee for life, comes from our education system, it comes from Unions it comes from left-leaning policial parties and once it’s embedded into the culture of your country, only an economic crash can wake people up to the truth. As long as governments can write checks and make payouts with unnoticeable inflation Canadians won’t notice anything. Those same Canadians will think to themselves well this is just how things are, this is how things are supposed to be.
This is why left-leaners hate the thought of deflation, now what deflation really is, is it makes the rich even richer, but guess who else gets richer in a deflationary period? The working class, what’s bad for a left-leaning government during a deflationary period are the regulations they enforce. Minimum wages as an example is economic crusher during a deflationary period. As long as there are minimum wages, the currency can’t deflate with the real economy. What this equates to is a government stimulus of some kind.
The U.S great Depression
The great depression happened 1929 – 1939 what’s rarely talked about is what happened prior to this. On June 4, 1912, Massachusetts passed the first minimum wage legislation in the United States. By 1923, fifteen U.S. states and the District of Columbia had passed minimum wage laws. In 1933, the Roosevelt administration during the New Deal made its first attempt at establishing a national minimum wage regiment with the National Industrial Recovery Act. If people wonder why the great depression took so long, it’s because of the government, now to be fair these regulations have proved to help society as a whole, but to act like there aren’t pros and cons to regulations is leading our children down a path to destruction.
Freedom, liberty, volunteerism, these debates have to happen more frequently, I don’t mind if or when people come to their own conclusions but what needs to be applied to our education as a society is a history of how we got here and unbiased history of the entitlements we pay inflated prices to enjoy. Otherwise, in the future, a lower Canadian loonie will be the least of our problems.
Interesting times ahead.
