Is the recession over?
The main effect of the recession on Canada so far has been a massive fall in exports with the result of redundancies, mainly in Ontario. Domestic markets, by comparison, have held up surprisingly well so far but this is about to change.
Some economists have expressed optimism over the latest economic figures but there is a sting in the tail. Canadian household debt has swelled to a staggering $1.3 trillion; this is close to Canada’s GDP (the amount of goods and services we produce).
The system we live in creates products faster than it creates markets in which to sell them, supply exceeds demand and the system seizes up. That is where a credit-led boom comes in, but the problem with debt is that it has to be repaid at some stage.
Yet, after the biggest world financial crash on record, credit is once again on the increase. This will simply delay and then increase the size of the next financial crash.
Ed Stelmach vows not to increase taxes to protect those at the top. He is on the horns of a dilemma — he has to balance the books in a financial crises.
His tactic is to cut the living standards of ordinary working people by cutting spending on things like the health service while gagging those who would speak out.
The NDP had an historic election victory in Nova Scotia but unless it embarks on a bold socialist program, it will be doomed to carry out a program on the lines of Stelmach.