Tuesday, April 14, 2015

The Vindication Of Thomas Mulcair

Some will remember the abuse heaped upon NDP leader Thomas Mulcair back in 2012 when he said that Canada was suffering from the same Dutch disease that afflicted the Netherlands after natural gas fields boosting that nation's currency reduced the competitiveness of its exports back in the 1970s. The culprit in Canada was the unrestrained exploitation of its oil fields, leading at one point to our dollar being valued higher than the American one. Exports suffered, manufacturing continued to decline, and the Harper regime gleefully denigrated the NDP leader for an inconvenient truth.

It would seem that Mulcair's analysis has been validated by both statistics and analysis.

Says Bank of America Merrill Lynch economist Emanuella Enenajor,
"The currency's appreciation of almost 60 per cent over the last 15 years has really hurt the manufacturing sector".
The fact that oil prices have now dropped is not having the salutary effects one might hope for:
Just because low oil prices are reducing transportation and energy costs, and the floundering loonie is making Canadian exports attractive again — it doesn't mean the sector will bounce back immediately.

You can't just turn the lights back on in the factory and start sending the widgets out the door again.

When the energy sector started to lose steam, the old stalwarts of the economy weren't there to pick up the slack.

"The Dutch disease that Canada has experienced has been more than a decade in the making, and I think it has really hurt business confidence," added Enenajor.
Of course, with an election in the offing, expect the Harper regime to give no quarter, evidenced by party stalwarts like the redoubtable, predictable and hyper partisan Pierre Poilivre:
"The leader of the NDP calls [the natural resources] sector a disease!" Pierre Poilievre sneered at Mulcair across the floor of the House of Commons last week.

Here is the interview with Emanuella Enenajor:


  1. This is true, but then I never railed against Mulcair for this one, since I thought it was obvious he was correct about this. Indeed, it was clear from the outset that Harper was setting up this idiocy, and all Mulcair was doing was stating the obvious. Of course, what is obvious to those of us in reality is never so to those that live on Bullshit Mountain (and yes, I loved it when Stewart introduced that concept some time back to describe the GOP, modern NA conservativism, and FOXNEWS in particular), and I am willing to accept that Harper and his cronies actually believed their own bullshit on this notion of Canada the oil energy superpower. Given their preference for living in fantasy worlds of perception of their own making not a hard sell.

    1. An apt explanation for the delusional state of the Harper regime, Scotian. Like you, I thought Mulcair was only stating the obvious, but, of course, in Harperland, such bitter truths are regarded as a perversion of their nonsensical constructs, the latter of which far too many Canadians seem willing to subscribe to.