Economy 52,864 Posted August 29, 2017 Share Posted August 29, 2017 https://www.google.ca/amp/s/www.bloomberg.com/amp/news/articles/2017-08-28/record-span-of-sub-3-growth-nearing-an-end-canada-eco-watch Another strong quarter with 3.7% GDP growth despite cooling housing market. Experts say Canada is now on the verge of maximum capacity and that economic growth must slow down to below 1.4% to prevent high inflation and over-heating. Higher interest rates must be brought to achieve this. Canada may be actually closer to full capacity than the USA when facturing in that a higher percentage of the population is active in the work-force (Labor Force Participation Rate), and that Canadas methology of measuring unemployment always results in a 1% to 1.5% higher unemployment healine number than in the USA Link to post Share on other sites More sharing options...
Gaga Monster 13,001 Posted August 29, 2017 Share Posted August 29, 2017 Not Canada having a problem with a too high GDP yet America is struggling to cross the 2% mark GGD Presidential Elections Link to post Share on other sites More sharing options...
Economy 52,864 Posted August 29, 2017 Author Share Posted August 29, 2017 17 minutes ago, Gaga Monster said: Not Canada having a problem with a too high GDP yet America is struggling to cross the 2% mark Well... The problem isnt the GDP itself but our ability to handle it... An over-heating economy or full capacity economy isnt always in a great state necessairily (although it usually is)... basically it just means that the Labor/workers of Nation, Machinery of companies, service providers etc cannot produce enough to meet demand... As a result... if demand is higher than the economy can produce, you get high inflation and all kids of other destortions An economy can be at full capacity but still be in a crummy state... Maybe theres too many jobs available and theres a labor shortage... but the quality of those jobs are bad... ... Maybe companies are not investing enough in new technologies for higher production and cannot meet demand... Canada is close to full employment... so the only way the economy can grow much more now is if more people join the workforce, or if companies increase productivity per worker with efficiency gains or new technologies It doesnt mean there isnt room for improvement on wages and job quality. Because in that sense, it has been better in past times in history! Link to post Share on other sites More sharing options...
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