Impressions of Canada's Economic Future

Abstract

This article analyses the controversy and misunderstanding that frequently surrounds important issues such as, exchange rates, monetary policy and the high levels of debt and deficit this country is now burdened with. There are two principles which are popular or immediate solutions to any economic problem. Oftentimes the solutions which may have worked in the past do not necessarily work in the present. The current economic climate in Canada is concerning and the prospect of economic recovery is disappointing. Canada is moving slowly in making the adjustments essential to be a serious competitor in global market-place-adjustments in which other nations have made significant headway. Canadian debt and deficits have hamstrung the ability of governments to alleviate economic hardship and rekindle economic activity the moment we significantly and unilaterally lower our interest rates. Canada will never fully emerge from its current economic malaise without making a commitment to improve its productivity and its overall competitive posture on a global scale. The only effective, long-term solutions today are the ones that acknowledge complexity, admit the restraining influence of debt and deficit, recognize the need for fiscal restraint on the part of all governments, and embrace a commitment to enhance national competitiveness. We are now in exceptionally trying circumstances and a suspension of efforts in fighting debts and deficits will not overcome the structural barriers to long-term success and prosperity.