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The Façade and Reality of the Canadian Economy PDF Print E-mail
Justice News
Posted by Joan Russow
Thursday, 08 October 2015 15:48
 
 
By Alan Danesh
 
The Conservatives claim to be true custodians of the 
 
economy. Yet as the figures below from Statistics Canada 
 
and International Monetary Fund clearly document, 
 
Canadian economy was being rapidly hollowed out in the 
 
last six years of the Conservative rule.
 
The Total Balance 
 
of Payments deficits for 2009, 2010, 2011, 2012, 2013, 
 
and 2014 are listed below: They represent a dramatic 
 
reversal of the massive the Balance of Payments 
 
surpluses of earlier years that the Conservatives 
 
inherited: 
 
2005 $ +21,910 x million
 
2006 $ +17,953 x million
 
2007 $ +11,307 x million
 
2008 $ +3,470 x million
 
2009 $ -40,341 x million
 
2010 $ -58,419 x million
 
2011 $ -47,195 x million
 
2012 $ -59,911 x million
 
2013 $ -56,254 x million
 
2014 $ -41,480 x million
 
____________________________
 
Sources: Statistics Canada, CANSIM, tables 376-0101.
 
International Monetary Fund Balance of 
 
Payments Statistics Yearbook and data files.
 
[Type text]
 
T
wo of the largest deficits are in the categories of 
 
Services (-$22,997 million) and Portfolio Investments 
 
(-$20,342 million). These are where any balance of trade 
 
surpluses gained through Canada’s export of goods are 
 
In reality Canadians’ standard of living has been 
 
maintained through a process of reverse mortgage, 
 
whereby Canada has been losing between $40 billion 
 
and $59.9 billion worth of its national economic assets 
 
each year in the past 6 years.
 
 
Any claim that these deficits are the result of 
 
international economic recession has no validity, since 
 
during the same period of massive Canadian balance of 
 
payments deficits many other countries from Algeria to 
 
Zambia, and many others in between, including the 
 
poverty-stricken Bangladesh, have been accumulating 
 
vast balance of payments surpluses.
 
 
International Balance of Payments is the nation’s 
 
“budget,” and is far more crucial in its impact on jobs 
 
and the economy than the government budget. Data 
 
generally available show that for every billion dollars 
 
which is taken out of the economy between 28,000 and 
 
40,000 jobs are lost in Canada, depending on in which 
 
area of the economy the funds would have been spent. If 
 
we multiply even the lower estimate of 28,000 jobs by 
 
the average $50.6 billion annual balance of payments 
 
deficits, the average number of jobs lost to Canadian 
 
economy in each year is more than 1.4 million. The 
 
façade of prosperity is maintained through the sale of 
 
Canadian national assets to foreign investors.
 
 
 
Alan Danesh is a political scientist trained in law. He lives 
 
in Victoria, British Columbia, Canada.
 
Last Updated on Thursday, 08 October 2015 15:54
 

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