David Raymond Amos @DavidRayAmos
Replying to @DavidRayAmos @Kathryn98967631 and 49 others
Methinks we should not be surprised to see that Morneau the Big Money Dude gets the last word on the yellow brick road on the way to the Circus before the Yuletide Season begins N'esy Pas?
https://www.cbc.ca/news/politics/finance-minister-to-deliver-economic-update-today-1.5397273
Finance minister to deliver economic update today
Fiscal statement comes on the heels of falling job numbers in November
· CBC News · Posted: Dec 16, 2019 4:00 AM ET
Minister of Finance Bill Morneau will deliver the fall economic update on Monday. (Fred Chartrand/Canadian Press)
Finance Minister Bill Morneau will give an update on Canada's fiscal health today as he delivers the fall economic statement.
Morneau's update, a document usually released several months before the federal budget, will provide more context for the minister's optimistic predictions for the coming year.
The minister has said he expects the Canadian economy to continue to grow, and to be one of the top performing economies in the G7 by the end of next year.
The document also will lay out project and program spending for the coming months.
But the briefing is coming on the heels of a bad month for workers. Canada lost 71,000 jobs in November, the majority of them in Quebec and Alberta, according to Statistics Canada.
Business and personal bankruptcies in Canada also rose by 8.5 per cent this past year, compared to just 1.4 per cent for the year before.
The Conservatives used those numbers to bolster their attacks against the Liberals in the House of Commons, saying Canadians are feeling financially squeezed and the government's choices are hurting the economy.
Despite a month of disappointing news, overall job numbers are still up 300,000 over the previous year.
Last week the Conservatives called on the minister for an "urgent" economic update. Finance critic Pierre Poilievre said the opposition wants to see a path back to a balanced budget, tax cuts for entrepreneurs and a change to regulations that hinder small businesses.
"The storm clouds of our economy have been gathering overhead for a long time, so if they are this ill-prepared for the trouble that is unfolding, it says something about their ability to govern," he said in a press conference last Sunday.
The Liberals said in their election platform that they plan to reduce the deficit to $21 billion by 2023 at the end of a four-year mandate. In this minority Parliament situation, their government might not last that long.
Morneau's newly issued mandate letter explains he is to adhere to four principles to implement the Liberals' fiscal plan:
The economy's growth is projected to slow in 2020. It's not a recession, but that doesn't mean it's cause for celebration either. In the third quarter of this year, real gross domestic product grew at an annualized rate of 1.3 per cent, compared with a revised reading of 3.5 per cent for the second quarter.
"There isn't a real sunny horizon when it comes to economic growth. It appears to be anemic. It looks like it will continue to be anemic," David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, told CBC News.
"And as a result we will likely not see the continued high wage growth for workers despite the fact that we have relatively low unemployment."
Canada's unemployment rate of 5.9 per cent has been a point of pride for this federal government — it's one of the lowest rates the country has seen since the 1970s — but wages for workers continue to be relatively stagnant.
The economy is projected to grow less than two per cent beginning next year, according to a Conference Board of Canada report.
By Macdonald's analysis, that growth is "not terribly good" news.
The report found that low unemployment will actually constrain the economy's ability to grow, while rising interest rates quell spending.
The Bank of Canada recently maintained the benchmark interest rate at 1.75 per cent, even as Governor Stephen Poloz noted Canada has "not been immune" to the global economic slowdown.
Morneau's update, a document usually released several months before the federal budget, will provide more context for the minister's optimistic predictions for the coming year.
The minister has said he expects the Canadian economy to continue to grow, and to be one of the top performing economies in the G7 by the end of next year.
But the briefing is coming on the heels of a bad month for workers. Canada lost 71,000 jobs in November, the majority of them in Quebec and Alberta, according to Statistics Canada.
Business and personal bankruptcies in Canada also rose by 8.5 per cent this past year, compared to just 1.4 per cent for the year before.
Opposition capitalizes on declining job numbers
The Conservatives used those numbers to bolster their attacks against the Liberals in the House of Commons, saying Canadians are feeling financially squeezed and the government's choices are hurting the economy.
Despite a month of disappointing news, overall job numbers are still up 300,000 over the previous year.
Last week the Conservatives called on the minister for an "urgent" economic update. Finance critic Pierre Poilievre said the opposition wants to see a path back to a balanced budget, tax cuts for entrepreneurs and a change to regulations that hinder small businesses.
"The storm clouds of our economy have been gathering overhead for a long time, so if they are this ill-prepared for the trouble that is unfolding, it says something about their ability to govern," he said in a press conference last Sunday.
The Liberals said in their election platform that they plan to reduce the deficit to $21 billion by 2023 at the end of a four-year mandate. In this minority Parliament situation, their government might not last that long.
Morneau's newly issued mandate letter explains he is to adhere to four principles to implement the Liberals' fiscal plan:
- Reducing the federal debt "as a function of our economy" (usually measured as the debt-to-GDP ratio).
- Increasing investor confidence in the Canadian economy and maintaining Canada's credit rating.
- Investing in measures that boost the quality of life for Canadians.
- Preparing for a potential economic downturn.
No 'sunny horizon' says economist
The economy's growth is projected to slow in 2020. It's not a recession, but that doesn't mean it's cause for celebration either. In the third quarter of this year, real gross domestic product grew at an annualized rate of 1.3 per cent, compared with a revised reading of 3.5 per cent for the second quarter.
"There isn't a real sunny horizon when it comes to economic growth. It appears to be anemic. It looks like it will continue to be anemic," David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, told CBC News.
"And as a result we will likely not see the continued high wage growth for workers despite the fact that we have relatively low unemployment."
Canada's unemployment rate of 5.9 per cent has been a point of pride for this federal government — it's one of the lowest rates the country has seen since the 1970s — but wages for workers continue to be relatively stagnant.
By Macdonald's analysis, that growth is "not terribly good" news.
The report found that low unemployment will actually constrain the economy's ability to grow, while rising interest rates quell spending.
The Bank of Canada recently maintained the benchmark interest rate at 1.75 per cent, even as Governor Stephen Poloz noted Canada has "not been immune" to the global economic slowdown.
With files from Peter Zimonjic
CBC's Journalistic Standards and Practices5382 Comments
David Raymond Amos
Methinks we should wait until we read the spin on what he said N'esy Pas?
David Raymond Amos
Methinks we should not be surprised to see that Morneau the Big Money Dude gets the last word on the yellow brick road on the way to the Circus before the Yuletide Season begins N'esy Pas?
Greg Howard
"The economy's growth is projected to slow in 2020. It's not a recession, but that doesn't mean it's cause for celebration either. In the third quarter of this year, real gross domestic product grew at an annualized rate of 1.3 per cent, compared with a revised reading of 3.5 per cent for the second quarter."
BLASPHEMY!!!! The cons have us in recession already! They hope, and pray for one so that they can reap political points, no matter the cost to Canadians. I wonder what foreign investors think when they hear such dire straits for Canada out of the opposition's mouth?
Richard Sharp
Reply to @greg howard:
Exactly. Like Trudeau's single tweet stating that Canada welcomes refugees, which would be long forgotten were it not for the Cons blaring it ten thousand times since.
Exactly. Like Trudeau's single tweet stating that Canada welcomes refugees, which would be long forgotten were it not for the Cons blaring it ten thousand times since.
David Raymond Amos
Reply to @Richard Sharp: As well they should
David Peters
Instead of pointing fingers, I think it's better to fix the root cause of the problem, which is centralized control of the monetary supply. The market needs to set the value of $.
End the fed.
Terry Tibbs
Reply to @David Peters:
I *think* the "better fix" would be to take the keys to the money print shop away from Mr Trudeau and put him on an allowance.
I *think* the "better fix" would be to take the keys to the money print shop away from Mr Trudeau and put him on an allowance.
David Peters
Reply to @Terry Tibbs:
No doubt, the liberal plan seems to be more of the same. With the national debt clock climbing at $1000/second, more of the same seems crazy.
No doubt, the liberal plan seems to be more of the same. With the national debt clock climbing at $1000/second, more of the same seems crazy.
David Raymond Amos
Reply to @Terry Tibbs: I concur
Terry Tibbs
So, all that Liberal pro-economic electioneering, it was another "just kidding" moment.
(but we all knew that)
David Raymond Amos
Reply to @Terry Tibbs: YUP
Barb Flewwelling
We are entering the twilight zone.
David Raymond Amos
Reply to @Barb
Flewwelling: Methinks many would agree that we have been there since the
sixties when Trudeau The Elder and his cohorts took over the reigns of
power N'esy Pas?
Barb Flewwelling
Reply to @David Raymond Amos: peut etre.
Barb Flewwelling
Reply to @David Raymond Amos: peut etre.
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