$620M for Quebec manufacturers hit by loonie rise
November 23rd, 2007
$620M for Quebec manufacturers hit by loonie rise
If you’re too lazy to read, the Liberal government is issuing tax cuts and other beneficial adjustments to help struggling Quebec manufacturers whose business has been negatively affected by the rising value of the Canadian dollar. Real cute.
While all of us consumers are enjoying the strong dollar (at least in theory, because importers are mostly pocketing the exchange), these factories are suffering. Why are they suffering ? Maybe because they rely too much on exports; if their income were coming primarily from within Canada, they would be somewhat indifferent to the exchange rate. A smart business would adjust to the changing economic climate, taking measures to use the strong dollar to their advantage. Considering how quickly this has happened, I can understand a reasonable amount of lag, but I’m not particularly impressed by this governmental ass-kissing. Businesses come and go, and every time the government gets involved to artificially protect something, someone else has to foot the bill.
I say let the businesses suffer, because if and when they fail, lessons will be learned and a newcomer will rise where its predecessor fell.
November 24th, 2007 at 10:54 am
this its the first and last time I read this bog. Talk about uninformed! Canada exports more than we import. So, a strong dollar hurts us on the whole. Let me get this straight - you’re saying “companies should ignore that market to the south that is 10-times the size of canada, and just focus on home”. yeah, that sounds really smart. sounds to me like Bills mind needs a bit of schooling.
November 24th, 2007 at 8:22 pm
On the small scale, yes you’re right and that’s how most people think. They see the huge US market and make a fast buck. The problem is that every transaction weakens our country, because we trade away our limited resources for fool’s gold.
Instead of flooding the market with cheap wares, we should be safeguarding what we have that the others don’t, because when that resource runs out, we’ll be left with nothing. There’s no point in being rich, if there’s nothing worth buying.