On January 16, the Macdonald-Laurier Institute published a study by former Statistics Canada analyst Philip Cross, entitled “Dutch Disease, Canadian Cure.” It argues that “after 10 years of a muscular dollar, Canadian manufacturers have adapted well to a strong currency – demonstrating that Dutch Disease is economic myth rather than reality.”
Mr. Cross argues, quite reasonably, that high commodity prices are not the only reason for the strong appreciation of the Canadian dollar after 2000. However, as Mark Carney noted in a recent speech, they are an important part of the story, explaining about one half of the exchange rate appreciation.
If anything positive has emerged from Canada's rising inequality, it is that a bona fide discussion about "the Canada we want" is becoming a mainstream staple of political dialogue. Not only politicians and pundits but also ordinary Canadians have begun to make the connections between health and wealth, public services and social justice, economics and the social sphere, democracy, taxation and fairness. These issues, occupying public attention since the recession began in 2008 gained strength when the Occupy Movement shone a global spotlight on inequality last year.
Prime Minister Stephen Harper and his party have recently attempted to demonize Opposition Leader Tom Mulcair for his alleged advocacy of a “job-killing carbon tax.”
As has been widely noted, Mr. Mulcair and the NDP have, in fact, only called for a cap and trade system based on the broader principle of “polluter pay,” which would require major carbon polluters to purchase emission permits from the government or on a carbon market. This is identical in basic design to Conservative policy during the first Harper government.