DEPRESSION POSSIBLE: HARPER’S ECONOMIC ABOUT-FACE

Prime Minister Harper did not rule out an economic depression on Monday, a total about-face from his initial view that Canada was the one country in the world that would not go into recession.

First he thought there won’t be a recession in Canada and that now would be a good time to invest in the stock market.  Then he believed there might be a recession and the appropriate economic response is to remove subsidies that would totally cripple the opposition parties.  That idea did not go over so well, resulting in a temporary shutdown of parliament, but prorogument afforded Mr. Harper some time to catch up on some current economic readings because now he believes we not only go into recession, but potentially a depression.

And Mr. Harper used to be an economist?  I’ll tell you what’s depressing: our Prime Minister’s dwindling credibility.

The PM’s evolving views

Oct. 7: “I think there are probably some great buying opportunities emerging in the stock market as a consequence of all this panic.”

Asked whether he would unequivocally rule out a deficit under his government: “Yes. … Yesterday I think I was asked one question about whether we would run a deficit and I said, ‘No.’ That’s my answer.”

Oct. 11: “The fact of the matter is independent analysts, including the International Monetary Fund, say that Canada is not going to go into recession with the current world environent and its current set of domestic policies. We’re the one country that’s going to continue to show some growth.”

Nov. 23: “The most recent private-sector forecasts suggest the strong possibility of a technical recession the end of this year, the beginning of next.

“I am surprised at this. I am also further surprised, more importantly, by deflationary pressure that we’re seeing around the world. This is a worrying development, one of the reasons why it may well be necessary to take unprecedented fiscal stimulus.”

Dec. 15: “The truth is, I’ve never seen such uncertainty in terms of looking forward to the future. …. I’m very worried about the Canadian economy.”

Asked whether the situation could turn out to be a depression: “It could be, but I think we’ve learned enough about depression; we’ve learned enough from the 1930s to avoid some of the mistakes that caused a recession in 1929 to become a depression in the 1930s.”

Mr. Harper also continues to allege that opposition parties are attempting a coup by “overturning the results of the election,” but those of us who are not politically ignorant know that this allegation is not true since a coalition is entirely within the rules of parliamentary democracy.

PROTIP: No matter how often you say it Mr. Harper, it won’t become true.  Stop treating the Canadian public like ignorant fools, and try presenting sensible policies instead.

Jack Layton is hoping Santa delivers him a miracle this Christmas, while Stephen Harper must be hoping for even just an ounce of credibility.

OVER HALF A MILLION JOBS TO BE LOST IN AUTO INDUSTRY COLLAPSE

Over half a million jobs will be lost in Ontario if the auto industry collapses.

This really comes as no surprise, given that’s about how many workers are employed in automotive and spin-off industries in Ontario.  But what really irks me is all the downright evil comments coming from the cheerleading, neo-con Albertans who seem to take great pleasure in seeing Ontario suffer.  If the tar sand industry were on the brink of collapse I would hope we could save people’s jobs.  The long-term effects of such a massive influx of unemployment will be devastating to everyone. ….. Windsor Ontario is going to turn into a ghost town, with many families being thrown into poverty.

Honestly, get a conscience man.

SHOULD WE BE ATTACKING AUTO UNIONS?

Auto workers across Canada are already bracing for the worst, and things seems were looking slightly better yesterday when Industry Minister Tony Clement announced $3.3 billion for the struggling Canadian auto sector, but all that money is contingent on an American bailout package, and Senate Republicans in the US are eager to wage war against not only the UAW, but against organized labour in general.

Stephen Harper and the Conservatives have already shown their true colours with regards to organized labour in the recent economic update by taking some shots at organized labour, but they have been unsurprisingly silent on the issue worker concessions since being pushed to the brink of defeat.

The notion that workers should forfeit their wages and rights and let capitalists reorganize their businesses appropriately is not the right approach. Are autoworkers making too much money considering the kind of work that they do? Absolutely.  But I fail to see the logic of pointing the crosshairs at middle class wage earners in an attempt to sweep them into the ranks of the working poor.  The North American auto industry is disintegrating before our eyes, and many people are going to lose jobs regardless of any bailout package. But now is not the time to be going after the auto unions. By doing so we are taking a step backward and setting the precedent that it’s OK to attack ordinary workers and that they deserve a lower standard of living.

It’s a shame that so many people are more interested in attacking workers rather than providing measures to soften impact of a global recession. This was exactly Prime Minister Harper’s initial response to this crisis: attacking unions and organizations which require public funding to survive. But what we really need a vision of how these manufacturing industries will emerge after the recession, and to start implementing plans to restructure those ailing sectors and re-create good paying jobs. The proposed bailout is just the first step along this path, but a necessary step to cushion the economic devestation set to unfold in places like Oshawa, Brampton, and particularly Windsor.  Michael Ignatieff might take a big step to reclaiming Ontario as a red province if he could articulate this vision.  Tick.  Tock.