Canada's Biggest Influence

Canada is a ship floating on the stormy seas of the U.S. economy.

Who has the most influence in Canada? If we have to choose one individual it is the President of the United States. Think about it: the vicissitudes of the U.S. economy and the White House’s capacity to respond properly to changing conditions make us realise that Canadians are frequently the ship floating on stormy seas.

It is a long-term problem dating back into what baby-boomers would consider the mists of time. We recall the impact of LBJ’s war in the 1960s, the the “Nixon Shock” when the U.S. switched itself off the gold standard, thereby upsetting all the nations that were tying their own monies to the U.S. dollar. And, of course, who can forget Reaganomics and the fiscal stupidity of George Bush Jr.?

Fortunately for us (or perhaps sometimes unfortunately), the second most influential person is our prime minister. It is the PM who is expected to lead the way as the government puts forward policies and programs in response to economic conditions. The economic stimulus package that was put into play over the past year or so is an example of this.

Unfortunately, as the U.S. economy continues to slump under the direction of President Obama, Canada’s economy stagnates. “Battered American economy drags Canada down with it” is the title of a recent business news article in my hometown newspaper, and according to the World Economic Forum, Canada has now slipped to 10th place in the global listing of competitive economies.

Happy sailing Canada.