EI and Bankruptcy Filings Dramatically Increasing
The number of Canadians filing for bankruptcy and unemployment benefits rose significantly in January, according to new numbers released Tuesday by The Office of the Superintendent of Bankruptcy Canada. More than 117,000 Canadians filed for bankruptcy over the period of twelve months ending January 2009. This denotes an increase of 15.8 % from the previous […]
Chrysler Threatens Shutdown of Canadian Operations
Last week’s threat by Chrysler to close Canadian plants if it doesn’t win big concessions from the CAW is possibly one the most troubling announcements since the beginning of the auto industry meltdown. Tom LaSorda, Chrysler president, said the company needs to lower its labour costs by about 25%, reducing wages from the current estimated […]
SR&ED – Essential To Canadian Manufacturers
The current economic recession has proven to hit even harder than many economists anticipated. An estimated 129,000 Canadians lost their jobs in January alone, of which Statistics Canada reports that Ontario workers lost a staggering 71,000. Alberta, once a thriving, profitable province, is even feeling the blow, having recently announced another 15,000 jobs lost. Forecasters […]
Helping the Canadian Economy through Increased Literacy
A short while back, Heather Reisman (President and CEO of Indigo books) was interviewed on The Hour, and brought up a couple of points that piqued my interest. According to Reisman, 40% adult Canadians functionally illiterate That 40% of Canadian adults are the biggest drain on social services, hospitals, and are more likely to end […]
A Look at 2008 Holiday Season Sales
Stores opened even before the crack of dawn, but many Boxing Day shoppers were lining up as early as the night before, some admittedly even forsaking Christmas dinners to be first in line and take advantage of the savings. As the day wore on, the dangerously icy roads and miserable rain still didn’t stop shoppers […]
Economist Scales Back Dread Meter
Things may seem bleak at the present; however, the Canadian economy will eventually recover. Dungan and Steve Murphy at the Policy and Economic Analysis Program expect that the Canadian governnment will run deficits for a few years and they urge Ottawa not to repeat the mistake of raising employment insurance premiums before a recovery. Low prices for oil and […]
Inflation or Deflation- What Will be the Ultimate Outcome?
Economists really do not have a consensus as to what will happen in the next little while. At the moment, they cannot agree whether inflation or deflation is the bigger threat. Deflationists believe that the cooling economy will lead to decreased consumption. This, combined with lower gas prices, lower housing prices, and the plummeting stock […]
Increasing Government Spending Will Stimulate the Economy
Keynesian Economics, or “The New Economics,” holds that governments should vary taxes and spending to offset both rising inflation and staggering output. Free-marketers argue that the cost of periodic crashes is worth it, in order to preserve the freedom of capital movements. At the moment, the former notion is prevailing. Before the 2008 financial crisis, […]
Federal Government Provides $25B Injection to Lending Industry
Finance Minister Jim Flaherty announced Friday that the federal government will buy $25 billion worth of mortgage debt from Canadian banks in a bid to stabilize the lending industry and encourage lower interest rates. Due to the subprime mortgage crisis, financial institutes are reluctant to lend money, and if they are, they’re charging significantly-higher rates. […]
Businesses Need To ‘Go Green’ To Stay Competitive In New Economy
Due to the economic downturn, many traditional industries are in peril because resources are no longer in demand, consumers are scrimping instead of spending, and the financial institutions are in disarray. To survive as a business, it’s paramount that now, more than ever, businesses need to innovate. We’re on the cusp of a new economy and only the […]