Canada's Economy

Canada's Economy

Postby Oscar » Thu Sep 22, 2011 11:36 am

Canada's Economy

August 15, 2011

To the Editor.

Standard and Poor’s has down-graded American credit rating from an AAA to an AA.

There are some American economists who worry that the U.S may be on the brink of a recession worse than the one that did occur in 2008.

Some Canadians, including economists, believe that another American recession would seriously affect the Canadian economy. And that should be a concern for all Canadians.

There is very little doubt that the dubious, even illegal, nefarious financial practices of Wall Street were largely responsible for the 2008 monetary mayhem that negatively affected many countries and millions of investors. But, on the other hand, a few people became extremely wealthier.

The Obama government--much to the distress of many--has not imposed regulations on how Wall Street operates.

David McGraw, Ontario Teachers’ Pension Plan Chief Financial Officer, has graphically outlined the widening chasm between American's super-wealthy, with global connections, compared to the average American. Approximately one tenth of one per cent, i.e. about 400 individuals, controls 45.9 trillion dollars of the wealth of the U.S.A. That amount roughly equals the total wealth of 154 million average Americans!

Despite these atrocious differences in wealth, the Republicans, with a majority in Congress, managed to extract from President Obama and his Democratic party an agreement not to increase taxes on the wealthy! The wealthy elite, in their charitable magnificence, suggested cuts to government funding for Medicaid and Medicare, Social Security, and most social programs. The colossal costs of a decade of wars in the Middle East did not solicit much concern.

Your readers may well ask how could this take place in a so-called democratic country. The gap between the rich and the poor was amplified by the U.S. Supreme Court in 2010. In a bitterly fought 5-to-4 decision, it ruled, " that the government may not ban political spending by corporations in candidate elections." It may be somewhat trite to quote this old proverb, but "He who pays the Piper may call the tune."

We Canadians, and Americans, need to ensure that the basic needs of the majority are met, as opposed to policies that ensure the excessive wants of a few.

Leo Kurtenbach,
Saskatoon. Phone
(306) 652-5129
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