Canadian Economy : The Economic Disaster Since The Great Recession

Not only does the Americanization of the Canadian economy change the way Canadians live and conduct business, it also destroys the distinct Canadian culture that Canadians have worked so hard to create. The Americanization of the Canadian economy has lead to the American control of the corporate structure of Canada, high levels dependance on American capital and to the state of the Canadian economy being a mirror image of the state of the American economy. With the high number of American investments in Canada, it is seen as to what a great extent the corporate world of Canada is being controlled by Americans. This leads one to wonder whether or not the Canadian economy ever become independent, or will it forever be dependant on the American economy for

The Canadian economy today is at an all-time high with higher economic growth and rising GDP Canada is seeing great changes in the economy. The GDP increase by 1.1 percent in just the first 3 months of 2017. Canada is quickly recovering from the decline in oil prices that significantly slowed down the growth of the Canadian GDP. Because oil plays such a major role in the Canadian economy this had a huge tole on the overall GDP of this country. But, as the country approaches an increased GDP the energy sector does not seem to be hindering the GDP any longer. With the price of oil and gas going back up this has significantly increased the GDP of Canada due to the large amount of petroleum that Canada produces.

There is a real separation between the outstanding material resource created by the Canadian economy and the increasing monetary weakness of Canadians. we must always create conclusive move to build a certifiable economy that benefits all Canadians over the long-term.

Department of Finance Canada (2009) states Canada has been significantly affected by the global recession and Canadian economy growth began to slow in the fourth quarter of 2008. Real GDP declined by 3.7 percent in the fourth quarter of 2008. Although Canadian economy is being affected by the global recession, the Canadian economy is still better than other industrialized countries (CMA Business Case)

One of the big problems Canada has had recently is the recession. To reduce the effects of this catastrophe, we plan to give benefits to those most affected: the middle class. We will invest in jobs for those who lost theirs during the recession and provide benefits to

Throughout history the Canadian and American banking systems have always taken separate approaches to the financial sector. There are many factors that influence the differences between the banking systems, some of which including their banking regulations, customer base and the chosen style of banking. All the factors presented have influenced the results of the banking sectors in both countries. Both systems have pros and cons, however the argument presented will reflect and support the benefits and success of the Canadian banking system and its ability to support the Canadian economy throughout the country’s history.

Additionally, Canada’s economy, since 2009, has posted high growth compared to various developed countries. Recently, Canada’s Bank of Governor Stephen Polz stated that the Canadian economy’s negative growth was a “mild contraction”. Yet, he acted as though we were in a recession, doing multiple things such as lowering interest rates. Some people have also stated that there is nothing to be worried about, even if Canada were to go in a recession. Lastly, some argue that despite negative economic growth, Canada is not in a recession, due to factors such as the unemployment rate hasn’t

Canada’s economy has to face many issues. One of these being the rate of exchange. The canadian dollar has been going up and down constantly throughout many years. “The first paper money issued in Canada nominated in dollars were British Army notes, issued through 1813, The Bank of Canada was created in 1934 and given responsibility, through an Act of Parliament.” Much has happened to the dollar throughout the years; the economy always varied depending on the dollar worth because it has always played a major role on the economy. Pertaining to the issues of the exchange rate, I will discuss two main ways of it and how it plays a big role on the economy in present times.

The value of the Canadian dollar demonstrates how well the Canadian economy is doing compared to other countries. Likewise, in chapter three of Dinner Party Economics it is states that “money measures the standard of living” (19). The Canadian dollar either increases or decreases in value depending on the amount of goods and services purchased. Currently the Canadian dollar has dropped, which demonstrates how the Canadian government is doing a poor job improving the economy. The value of the Canadian dollar dropping causes inflation to occur, making too many Canadians save their money opposed to spending it. In chapter six it mentions that inflation is the real enemy of money (62). Therefore, in order to decrease inflation, spending money is essential. If Canadians do not spend their money, the increase of prices on goods and services will cause unemployment

According to Department of Finance, in 2013 the estimated percentage for Real Economic Growth was 0.1%, down from 0.5% projected at budget for 2012. This estimate is slightly more prudent than the latest consensus among private sector forecasters as it reflects weakened economic conditions. Due to the blockage of New Brunswick Mine in 2013, it vastly affected New Brunswick’s economic growth. In addition, sluggish employment, weaker exports and flat consumer expenditures in 2013 also constrained growth. There were more employment in some sectors such as construction, agriculture and natural resource.

In 2008, subprime financial crisis started from the United State of America, soon the whole global economic are shaken by this crisis. However, Canadian bank industry survived from this crisis surprisingly.

Today, Canada’s economy is about the 15th largest economy in the world. According to OEC, Canada has the 11th largest exporter in the world. Exporting and trading has been a major characteristic of the Canadian economy before Canada even became a country. Its economic history begins prior to European colonization with First Nations societies commonly hunting and trading. Exporting will always be a prominent aspect of Canada’s economy.

Canada’s financial stability depends on the health of America’s economy, as international trade accounts for 45% of Canada’s Gross Domestic Product (GDP) and 79% of exports are to the United States. Canadian and American unemployment rates are positively correlated for that reason, as exemplified in early 2009. Canada’s unemployment rate quickly steepened as the United States’ rate gradually increased to about 10% (refer to graph 1 and 2). During this time, Canada’s growing trade surplus became a deficit in only a few months (refer to graph 3). From this data, one can determine that Canada’s exports decreased rapidly due to rising economic

To begin, a brief history recap of the financial crises in 2008 will be given. Following that will be a breakdown of how the financial systems were set up in Canada and the U.S. We will then, in detail, discuss the Canadian and the U.S financial markets, in particular, the housing market and how each country was affected by the 2008 financial crisis. Lastly, we will proceed to evaluate the overwhelming differences between Canada and the U.S; from their core financial system to mortgages that allowed the Canadian market to remain excluded from the dire consequences of the US market recession, which followed shortly after the financial crisis.

With Canada and the United States being neighbours, the common saying goes that “if the U.S. sneezes Canada will catch a cold”. When it came to the housing bubble both countries experienced marginally different outcomes. Canada was able to shield itself from the effects of the Financial Crisis due to its regulatory system, corporate governance and strong banking systems (Lynch, 2010).