The Recession: Light at the End of the Tunnel?

How Can We Climb Our Way Out of the Darkness?

By: Oxana Tsirelman, Staff Writer

Via The Big Mr

The recession hit the world hard, especially Europe – Germany, Italy, and Greece are bankrupt. The United States is struggling to keep its head above water, with Canada cautiously floating behind them. 

Unfortunately, the recession hit Ontario harder than any other provinces in Canada. Now, an OAB technical paper cites that, “there is renewed pressure on the provincial government to steer a fragile economic recovery into a safe zone.” To simply say that nations are carelessly spending all their money into bankruptcy would be grossly oversimplifying this predicament. That’s certainly not going to help North America and the rest of the world claw their way out of this financial turbulence.

[pullquote]Jim Stanford, one of Canada’s leading economists, affirms that some analysts are sure that a full economic recovery is at hand.[/pullquote]

Some argue that delicately balancing Ontario’s finances to keep our heads above water is our first priority; going into “deficit hysteria” is costly. The Canadian Centre for Policy Alternatives argues that, “stronger provincial leadership to save and create jobs as well as to ensure the vulnerable and the unemployed aren’t left behind.” If the Ontario government enacts laws to make the workplace more secure, this could definitely go a long way towards making our jobs more secure. However, simply making laws isn’t enough; we must ensure that those laws are strictly adhered to. 

In order to put an end to the recession, we must first have a clear understanding of it. In Exposed Revealing Truth’s about Canada’s Recession, Armine asserts that, “all indicators point to the fact that the current downturn in production will be at least as significant as the recessions of the 1980’s and 1990’s.” Armine provides a clearer picture of the recession by explaining that before the recession hit, our unemployment rates stood at 35-year lows nationally.

It was actually around six percent in 2007-2008, and was even as low as an impressive 5.4% in the final quarter of 2007. However, the numbers drastically sky rocketed in January 2009 when unemployment rate hit 7.2%. It didn’t stop there though –  our unemployment rate kept deteriorating and now, we’re on the verge of bankruptcy.  

 Although our economic state looks bleak, it’s not hopeless. With the right attitude, hard work, and dedication, Canada can climb back up the economic ladder and become prosperous again. Jim Stanford, one of Canada’s leading economists, affirms that some analysts are sure that a full economic recovery is at hand. Stanford also studied Canada’s economy and concluded that although our economic state is not as dire as Europe and the United States, we still have a long journey ahead of us to a full recovery.

Additionally, Sanford notes a troubling aspect: our private sector is contracting. One optimal solution for Canada to make a step in the right direction is to expand jobs in the government and public sector. As for the jobs in the private sector, instead of contracting them entirely, perhaps we should merge them with the public sector. That way, the government has more control over job security. After all, people generally trust jobs in the government sector, so if more jobs are integrated with the government, we’ll have more a greater pool of applicants from which to choose.

ARB Team
Arbitrage Magazine
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