18 May 2007

Apparently Evil Stephen Harper...

Is having trouble destroying Canada.

The Canadian dollar hit its highest intraday level in almost three decades Friday, and many strategists believe the currency has further to go.
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RELATED:
Yikers... Steffi gets another brainwave
Stephane Dion, the Liberal leader, has made it clear he would not proceed with the second percentage point cut to the GST promised by the Conservatives in the last election.

But Mr. McCallum's comments are the first to hint at reversing the cut made by the Tory government last year.
Now, I'm no economist, but on a purely political level, this has to rank up there... with starting up a Zeppelin company to compete with Westjet.
John Williamson, national director of the Canadian Taxpayers' Federation, said he would welcome income tax cuts. But he said the idea of linking those cuts to an increase in the GST would be "electoral suicide."

"The Conservatives would have a field day. The Liberal caucus has got to give its head a shake if it is contemplating increasing the most hated tax in Canada," he said.

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11 comments:

Canadi-anna said...

Is this really a good thing?

ddrfreak said...

Dude, a really hgih doller is not good for the economy. Particularly here in the West.

Anonymous said...

Chretien's Liberals wanted Canada to have a Canadian peso - keep the peasants poor and down on the farm, they're easier to control that way.

Neo Conservative said...

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"ddrfreak said... Dude, a really hgih doller..."

you mean a high dollar, right?

time to ease up on the doobies, uh... dude.

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Neo Conservative said...

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"Canadi-anna said... Is this really a good thing?"

i'm no economist, but my short answer would be... how would you feel about a 60 cent dollar?

seriously, though... good for the man on the street... less beneficial for canadian manufacturers.

let's say ddrfreak, above... is manufacturing high-pressure sodium light assemblies, for grow-ops in the united states. a stronger dollar makes him less competitive than his stoner-brother entrepreneurs in minnesota, for instance.

you, on the other hand, have more spending power when you buy stuff, or slip off to vegas with hubby.

it also tends to cool off a hot economy... which isn't necessarily the worst thing that could happen.

in economics, as in life... balance is everything.

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Canadi-anna said...

I guess my thought is tourism. With summer coming, I expect people from the US to head north, but if the dollar doesn't give them any benefit, will they just stay home?

I know my parents always thought it was a good thing when the dollar was high in the '70s -- but the streets were cleaner and there was less crime, so there was more incentive for travellers anyway (I'm just speaking of TO here).

Neo Conservative said...

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i see your point, but i don't even consider currency fluctuations when i think vacation.

what's important to me is entertainment and safety. you want cheap, you can always do mexico... if the increasing body count doesn't bother you.

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Crabgrass said...

Neo, are you the sort of person who would, I don't know, maybe look at how the dollar perfomed in the 8 months prior to January 2006 and the 16 months since before posting thing like this? One might do that if they were looking to attribute the dollar's behaviour to some event that took place at that date.

If you would have looked at that question, you would have observed that growth of the Canadian dollar has been much less impressive since Harper took office. By my rough calculations, about 3.5% on an annualized basis over 16 months versus about 15.5% (annualized) over 8 months under the, um, the previous government. I didn't hand pick those dates, by the way, I just went back 2 years on yahoo's finance page.

Do you know many economists who think that another cut in the GST is a good idea?

Neo Conservative said...

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"Crabgrass said... Neo, are you the sort of person"

sorry, crabby... call me judgemental, but in my universe, you are known by the company you keep... so you'll just have to take my word for this...

people would -- and i'm being perfectly serious here -- probably take more time to consider your opinions if you didn't have canadian cynic at the top of your linkie lovelist.

oh, and liberal catnip too... famous for her screechy, irrational, regularly scheduled public meltdowns.

if you're touting these two as your intellectual peers... you'd be better off heading over to the "if you'll lick me, i'll lick you" lovefest at liblogs, or rabble.

now, if steffi actually ever does get into the pmo, i'm sure we'll have ample chance to experience a 60 cent dollar.

be sure to let me know how that works out for you.

long weekend, sunshine, beer and steaks... in the words of a once famous seventies chanteuse... i just haven't got time for the pain.

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Crabgrass said...

Neo, my blog is so sparsely travelled it may as well be on the back of a Fish 'n Chips take-out menu in my junk drawer, so I appreciate that you popped in even briefly. It doesn't surprise me that you don't like Canadian Cynic's or Liberal Catnip's pages - your perspective obviously differs pretty sharply from either of theirs. But I am a little surprised to hear you call Catnip "screechy". Have you ever been to a blog called "Small Dead Animals"? It can be most unpleasant.

Anyway, back to your post - do you in truth attribute the strong loonie to our CPC government, and if so, mustn't you attribute its performance before January 2006 to the Liberals under Paul Martin?

Do you know what the general opinion is among economists of a decrease in the GST?

Neo Conservative said...

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Crabgrass said... "Do you know what the general opinion is among economists of a decrease in the GST?"

hmmm... you're catching me in between beers and wiring up a ceiling fan, but i'm sensing a galactic disconnect here... let me try this one more time...

"do you know what the general opinion is among taxpayers... of the very existence of the gst?"

i truly appreciate the unexpected civility of the exchange here... so how about you answer a question for me... you actually admire the sad ranting of a cc or a libnip over sda?

seriously.

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