Government spending plans aiding Canadian economy

   Canada column for Sunday, April 17/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   The Liberal government’s spending plans are already proving to be a boost for the Canadian economy.

   The Bank of Canada kept its trend-setting interest rate unchanged at 0.5 percent while predicting economic growth as shown by the gross domestic product to rise by 1.7 percent this year, up 0.3 percent from an earlier prediction.

   The central bank noted this was due to Prime Minister Justin Trudeau’s government deciding to invest $25 billion in additional spending over the next two years for such things as infrastructure projects.

   The spending was included in the recent federal budget that projected a deficit of $110 billion over five years while the previous Conservative government was reducing spending to avoid going into the red.

   “The mix of policies that we have today is a more favorable one for economic growth than what we had before," bank Governor Stephen Poloz said.

   Spending by the government is helping to counter lower oil prices affecting the Canadian economy’s commodity-abundant provinces.

   The dollar dropped from a seven-month high topping 78 cents U.S. with news of the key interest rate remaining steady and lower oil and gold prices.

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Canadian dollar, stocks soar after higher oil prices, job creation numbers

   Canada column for Sunday, April 10/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   Strong employment numbers and higher oil prices are giving Canada’s dollar and stock markets a boost.

   The dollar rose above 77 cents US, up more than one cent on Friday, as Statistics Canada reported 40,600 jobs were created last month.

   The job numbers showed the largest one-month increase in employment in six months.

   As the price of crude oil strengthened to almost $40, so did Canada’s fortunes as an oil-rich nation.

   Last month’s job advances were significant as 35,300 were for full-time work and pushed the unemployment rate down 0.2 percent to 7.1 percent from a month earlier.

   While Alberta’s unemployment rate fell to 7.1 percent in March from 7.9 percent, there were more people out of work in Calgary and Edmonton.

   Over the past year, Canada has added 129,600 net new jobs, an increase of 0.7 percent.

   Meanwhile, the pace of housing starts in Canada slowed in March due to drops in multi-unit construction.

   Canada Mortgage and Housing Corp. said the seasonally adjusted annual rate was 204,251 units, down from 219,077 in February.

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Many Americans say they would move to Canada if Trump wins: Vox.com survey

   Canada column for Sunday, April 3/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   Canadians might want to prepare to welcome millions of fleeing Americans should polls be correct that Donald Trump might win the presidency.

   A survey conducted by Vox.com of 2,000 registered voters showed 28 percent claimed they’d likely “consider moving to another country, such as Canada” with a Trump victory.

   And, they wouldn’t be hampered by a large wall at the border between the U.S. and Canada.

   Prime Minister Justin Trudeau said claims of Americans wanting to move to Canada occur after every U.S. election.

   It happened, however, when George W. Bush was elected in 2004, with immigration to Canada doubling by 34,000 Americans in a decade.

   With Trump’s campaign promises and popularity, searches online about “how to move to Canada” have surged, according to Simon Rogers of Google.

   The Canadian technology industry that has long lost talented workers to the U.S. is fighting back seeking Silicon Valley, California talent over concerns about Trump.

   Sortable, a Kitchener, Ontario tech company, has been running Facebook ads featuring a photo of Trump with the tag line: “Thinking of moving to Canada? Sortable is hiring.”  http://sortable.com/careers-at-sortable/

   Cape Breton, Nova Scotia radio host Rob Calabrese has set up a website called “CapeBretonIfDonaldTrumpWins,” offering to provide a new home for anyone seeking refuge.

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Canada's Liberals on spending spree to boost economy

   Canada column for Sunday, March 27/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   Canada’s new Liberal government intends to spend its way to greater prosperity as it projects a $29.4 billion budget deficit for the coming year.

   Prime Minister Justin Trudeau suggested that Canadians not worry as his government intends to again balance the budget “in the coming five years.”

   During last fall’s election campaign, the Liberals pledged to invest in infrastructure and put more money into people’s pockets to grow the economy – “and that’s exactly what we’ve done,” he said.

   The spending plans are contained in the government’s first budget and ended almost a decade of fiscal restraint under the Conservatives.

   Finance Minister Bill Morneau said it will create 100,000 jobs and boost economic growth nationally.

   It provides $6.6 billion over two years for infrastructure projects and $13 billion to help aboriginal communities that includes water and wastewater systems and education on reserves.

   There’s $10 billion more over two years for new payments to families with children and $3.4 billion over five years to increase the guaranteed income supplement for single seniors and restoring the Old Age Security pension eligibility age to 65 from 67.

   The government will also spend $2 billion over three years on infrastructure improvements at colleges and universities, and $2 billion over two years for a low-carbon economy fund.

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Retirement age for pensions being reset at 65 by Liberal government

   Canada column for Sunday, March 20/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   Canada’s “official” retirement age when people can begin receiving the Old Age Security (OAS) pension will be restored to 65, Prime Minister Justin Trudeau said.

   As promised in the election campaign last fall, the new Liberal government will undo the previous Conservative government decision to move the eligibility age to 67.

   It is an important step, Trudeau said, in “how we care for our most vulnerable in society.”

   The previous government said it would raise the eligibility age for the OAS by two years beginning in 2023 in order to protect the sustainability of the plan.

   Trudeau said he believes “a little bit of sophistication” along with the trend to people working longer before taking the pension at a higher amount will make better sense.

   In a meeting at Bloomberg News in New York, Trudeau also said he is focused on an infrastructure spending program over 10 years that will lead to economic benefits for the country.

   Michael Bloomberg, former New York mayor and company founder, welcomed Trudeau whom he called “Canada’s New Hope” in an opinion column.

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Canada-U.S. friendship revived under Prime Minister Justin Trudeau

   Canada column for Sunday, March 13/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   Wasn’t that a party, eh?

   The first families of Canada and the United States appeared to be best friends forever as Prime Minister Justin Trudeau was honored at a state dinner in Washington.

   While the best of neighbors, the relationship between the countries is again warming with Liberal Trudeau’s election in October.

   It was the first official visit for a Canadian prime minister in 19 years, the last being when Jean and Aline Chretien were the guests of Bill and Hillary Clinton.

   “We have a common outlook on the world,” Obama said of Trudeau, who in turn called him “a deep thinker with a big heart but also a big brain.”

   The first ladies hit it off, too, with Michelle Obama introducing Sophie Gregoire-Trudeau as her “soulmate.”

   As well as the glitzy dinner with numerous Canadian-born celebrities and high-powered political and business leaders, Trudeau got down to business during his three-day visit.

   They agreed on Obama’s desire to advance initiatives to reduce greenhouse gases and finding new sources of non-carbon based energy that aligns with Canada’s foreign policy.

   The two countries will also implement added border security measures including pre-clearance for low-risk travelers and sharing information on people entering and leaving each country.

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Go ahead, eat your "ugly" veggies!

   Canada column for Sunday, March 6/16

   THE CANADIAN REPORT

   (c) By Jim Fox

   “Ugly” food can be a good thing, especially for shoppers seeking bargains as prices soar due to the weakened value of the Canadian dollar.

   Weston’s Loblaw chain is expanding its “Naturally Imperfect” foods nationally after offering the “ugly” line of apples and potatoes in Ontario and Quebec.

   After the successful test, the company is adding “unsightly” peppers, onions and mushrooms costing 30 percent less than their good-looking counterparts.

   “Canadians are really looking for some options . . . and having greater accessibility to that healthy eating product of value,” said Dan Branson, Loblaw’s senior director of produce.

   With the Canadian dollar slumping to 75 cents U.S. and factors such as the California drought, imported fresh fruit and vegetables have jumped 12.9 percent and 18.2 percent, respectively.

   The less-than-perfect selections are now in Loblaw’s Real Canadian Superstore, Your Independent Grocer and most No Frills stores in British Columbia, Alberta, Saskatchewan and Manitoba.

   Real Canadian Superstores and Your Independent Grocer locations in the Atlantic provinces and the Yukon have also joined the program.