BC Shows What Developed World Must Do To Save Economy

[Economy 52,888]

http://www.cbc.ca/m/news/business/b-c-economy-booming-despite-energy-sector-woes-susan-bonner-1.2967214

I find this very interesting cuz it shows how the Developed world can still compete with emerging markets

Canada has had a hard time competing with manufacturing because of high labor costs. Its lost many jobs to China, Mexico and even some US States with low wages. "Those high payig jobs arent coming back" say most experts

With manufacturing dying, Canada has put emphasis on energy particularly oil. But as we see right now, its a volatitle comodity and not always reliable. In fact Alberta (Canadas largest oil producing province) is poised for recession this year

British Columbia however has gone a different route. They have focused on education and tried to gain high jobs. And its paying off. Company after company is startig up and this industry is consistant and pays off. British Columbia in fact despite also having a big energy sector themselves that is suffering is poised to over-take Alberta soon and be Canada's new richest Province and lead the Country in economic growth

So in short the developed world maybe cannot compete with developed Countries for labor intensive manufacturing. Trying to focus too hard to compete on that is a waste of time. What we need to do is be innovative, have an educated workforce and other high paying industries will fond its way in rich Nations!

[Luc 4,776]

But if every country did that, wouldn't there be an over supply of people with high education? Like in Zimbabwe like 20 years ago...

[Economy 52,888]

But if every country did that, wouldn't there be an over supply of people with high education? Like in Zimbabwe like 20 years ago...

well yeah there would be an oversupply

But not every Country is gonna do that. Many Countries just fail to adapt. Or there is internal political gridlock among parties who do not agree on what the economic focus should be

My Province Ontario is starting to do the same BC has been doing. Were more reliant than any other Province on manufacturing because we dont have many Natural Resources like other Provinces do but our Government has recognized that even if they try hard to maintain manufacturing here, over the long term its growth will be flat at best. It may get some growth now because of weaking Canadian Dollar and an improving US but thats a temporary cyclical factor

But so far only some Provinces have taken this step. Our Federal Government has been focusing on energy but now that the energy secotr is collapsing i dont think they have a clue what to focus on now

Canada is extremely divided. Provinces have a lot of power and each Provinces economy is so different from another. Maybe its best the Federal Government let the Provinces do the deciding and not focus on anything specific and instead just provide support for Provincial Governments to do what they think is best?

I dunno. Even US States for economic matters dont have as much influence as Canadian Provinces. I dunno how Canada can focus on anything as a Nation as a whole. One expert called Canada the "Canadian Union" since each Province is almost like its own Nation with only a few laws regulated by the Federal Government and havin the same currency :shrug:

[Luc 4,776]

Regional differences are good in my opinion. That way when there's a crisis in one sector, there's probably another sector that's doing better so the economy will keep growing overall but really, Canada should be less dependent on gas/oil exports because they're indeed very volatile.

[Economy 52,888]

Regional differences are good in my opinion. That way when there's a crisis in one sector, there's probably another sector that's doing better so the economy will keep growing overall but really, Canada should be less dependent on gas/oil exports because they're indeed very volatile.

the downside is the Whole West Vs East in part because of incompatibility

Like when the recession hit in 2008, manufactured tanked naturally. But it got hit with a double wammy because oil prices were high so our currency went up

In Essance Western Canadas success crushed Central Canada further during that time

Our Central Bank is also having a hard time with monetary policy. The current 0.75% is too low for some areas with higher inflation and better economy, but too high from some areas that could use rates all the way down to 0% lile Eastern/Atlantic Canada

Sometimes i wonder if Canada would do better if it divided into 3 Countries. If i didnt love my Country so much id support it

But u get my point about large Countries being more difficult to pull off Socialism and Government intervention than in small Countries right? What works in Denmark and Scandinavia i doubt would work in Canada or the US :shrug: