Economy

Based on media reports, when it comes to the crisis in the auto sector, there are only two solutions: bailout or bankruptcy. Canadians have been offered a false choice in this debate; in reality, there’s a third way — a strategy that could create jobs while making Canada’s auto sector globally competitive again. 

We should seize the unique opportunity that the combination of the Big Three’s impending collapse and calls for government intervention presents to transform our economy, once and for all, by allowing all Canadian manufacturers — not just Chrysler, GM and Ford — to compete for public investment. 

Last week, I said that Canada desperately needs leadership on the economy. I also complained and that Stephen Harper’s lack of concern for our economic well-being and failure to release a platform didn’t instill confidence. On Tuesday, the Conservatives finally produced their plan with less than a week to go before election day.

I’ve studied the economic portions of the Conservative Platform and have come to conclusion that Preston Manning was right when he said that Stephen Harper was like the captain of a ship in “stormy economic seas”. But, far from promising to assuredly navigate the country through the rough waters ahead, the Conservative Platform evokes an image of Harper as a helpless sailor desperately trying to bail water out of his leaky ship.

A close friend of mine who’s an expert in finance just sent me a very disturbing email. Explaining the factors conspiring to hurl North America into a deep recession, he said “we’re so close to Armageddon…I can’t believe it!” I can confirm that every day on Wall Street feels like one step closer to catastrophe. And, despite what Harper says about Canada’s “economic fundamentals”, our country is in deep trouble too.

Yesterday, a group of Canada’s leading economists were united in their warning of a severe and prolonged recession. Canada’s economy could be in decline until the end of 2009 due to the weak U.S. economy, falling oil prices, and lower domestic demand.