jerryking + christopher_ragan   2

Economic stagnation is here to stay - The Globe and Mail
LAWRENCE MARTIN
Special to The Globe and Mail
Published Tuesday, Apr. 14 2015

The bleak economic predicament hasn’t received much attention. Seems we’re living under an illusion that we’re doing reasonably well, the reason being that until the recent oil price plunge the Conservatives pushed out a lot of feel-good messaging about Canada faring better in the wake of the global financial crisis than other major economies. But doing better than some rivals doesn’t necessarily mean you’re doing well yourself.

Over and above the energy price fall, experts cite a range of causes for the inertia. A major one is productivity. “On that, we’re doing terribly relative to our own historic rate,” said economist Don Drummond, “and we’re doing terrible relative to the rate of almost every developed country.”

Our business class, he added, is neither aggressive nor entrepreneurial, consumer demand is inhibited by high household debt and we have an aging labour force that is only going to grow at about 1 per cent a year. The small increase will come from immigrants, who make lower wages.

“I don’t look for growth to be above 2 per cent on an average basis, I’d say, for the next 10 years,” Mr. Drummond said.
economics  Lawrence_Martin  economic_stagnation  slow_growth  Don_Drummond  productivity  economists  Christopher_Ragan  the_Great_Decoupling 
april 2015 by jerryking

Copy this bookmark:



description:


tags: