Cornwall ON – Is the world about to enter a long Depression? We’ve heard about a “jobless recovery” but there’s really no such thing.
I use the analogy of having a leak in your pool ( I know a very bourgeois analogy). Instead of fixing the leak you simply turn on your hose. The level stays near the same until you turn off the water.
Most of the world government’s choice in dealing with the recession of 2008 was to print and borrow “stimulus” money. Here in Canada the Harper Government had what they called the “Economic Action Plan” and spent millions promoting their efforts which essentially shovel ready infrastructure plans.
Our new arena in Cornwall is getting a blast of those dollars. Car companies were propped up and for reasons that apparently only a banker or politician can explain monies were pumped into successful Canadian banks.
We in Canada have weathered the storm better than many other countries, but what history shows is that what effects your neighbour ultimately effects you.
We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.
And who will pay the price for this triumph of orthodoxy? The answer is, tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again.
Taxpayers now have to pay not only for their own survival, but the countries with a mass of extra debt that really didn’t help the average person. Now governments are talking tough talk about deficits, slashing spending, and prudence after spending billions around the globe which of course will lead to …..deflation, job cuts, and if as predicted.
The G20/G8 meetings in Toronto end today. The big news coming out of them is that Stephen Harper is writing a cheque for over a billion dollar commitment in foreign aid in a time of recession to grab some photo time and that Mr. Sarkozy stated that his summit will cost 10% of what Canada spent.
What do you think Canada? You can post your comments below.