I take this as a very good sign:
The global economic crisis is an opportunity for Canada to cash in when the eventual recovery arrives, Prime Minister Stephen Harper said Tuesday in his first major speech on the current recession. Ottawa will ensure the country comes out of the recession faster than other nations and stronger than ever, Harper said, adding Canada entered the global recession in a position of strength compared to other countries. “For Canada, this crisis does offer opportunity,” Harper said in a speech to the Brampton Board of Trade. Ultimately, it is an opportunity to position ourselves so that when the recovery comes, we’re among the first to catch the wave.” Canada was the last “advanced country” to fall into recession, he said.
“If there ever was a time to put away that legendary Canadian modesty, it is now,” Harper said. “Notwithstanding all the troubles around us, Canada has real advantages, real assets, and we should not hesitate to remind investors, partners and leaders around the world of the comparative strengths of our country.”
A colleague who was at the speech reports: He pulled stats from the Fareed Z (Newsweek) piece and was very bullish on Canadian banks, financial systems and, as he said: “Canada will be able to take advantage of this economic crisis.”
March 11th, 2009 at 5:24 pm
It’s nice to think that at a time like this, you have an economist holding the country’s top office. But I think it’s pretty fair to say that, since taking office, Stephen Harper has repeatedly damaged his credibility as an economist. He squandered a long-standing budget surplus cushion and introduced GST cuts that were widely panned by other economists as a poor choice of a tax to cut. Five months ago he was suggesting it was a good time to buy into the stock market, as well as attacking the opposition for raising the possibility of running deficits. Three and a half months ago, rather than proposing a stimulus package, his government wanted to slash $5 billion of federal spending.
Sure, there’s truth to his message that Canada has advantages in this crisis. But, sorry, his track record leads me to believe his words are chosen solely to serve political needs.
March 16th, 2009 at 10:31 am
Why do you believe that speech excerpt is a good sign?
March 18th, 2009 at 5:03 pm
Beyond Harper tooting his own horn, I think the statements are valid. From my limited knowledge, Canada seems to have a more stable economy and more reliable banking system than many countries.
I think however he’s positioning himself to look good when the inevitable happens.
March 18th, 2009 at 5:11 pm
Harper is still trying to paint this as a financial crisis that can be solved with minimal fiscal policy and maximum regulatory response from the global community. Monetary policy is gone.
He wants not to spend any money, to erase the recession through cheerleading alone.
It would be good news if he was right.
Today Merrill Lynch forecast a 9% decline in Canadian GDP p.a. this year based on first quarter results.
He’s not right.
March 21st, 2009 at 7:36 pm
Matt of course his words serve political needs. That is his job. While he is not my kind of guy, the job of prime minister in a recession is to boost confidence. A recession/depression is some part economics and whole lot of confidence.
That is he is an economist by training should give no more comfort than if he were a philosopher.
His job is to retail the ideas of others. When the ideas have been sufficiently vetted with the public so that there is a degree of consensus, he then launches policies that reflect those ideas.
Until then he is the chief cheerleader beating back the naysayers, whether they are wiser, (such as David Dodge (former head of the bank of Canada)) or not. alex