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Economy

The NDP’s record on the economy isn’t as bad as you think

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With two weeks left until Albertans go to the polls, the United Conservative Party is starting to feel the heat. And no wonder: they have a leader who’s playing hide-and-seek with the media, candidates who seem to be competing to see who can fit their own foot furthest into their mouth, and a growing list of current and former conservative heavyweights speaking out against the party’s new direction. But there’s still an ace up their collective sleeve that could save the party from its own listless campaign, one that even Danielle Smith knows how to play properly. It’s the enduring belief — or perhaps, in Alberta, the article of faith — that conservative governments are better for the economy.

That belief isn’t actually backstopped by much in the way of data, mind you. Instead, it’s a combination of deliberately drawn spurious correlations, conservative political rhetoric and the business community’s vested interest in sustaining this narrative in order to elect governments that will cut their taxes. It’s also a reflection of the NDP’s refusal to make a better economic case for itself and its record.

The way in which conservatives have weaponized the Rachel Notley NDP’s four years in government is a case in point. The economic downturn that occurred under the first NDP government’s watch in 2015 was a direct result of the collapse in commodity prices, one that was already well underway by the time they arrived in office — and one that probably helped get them elected in the first place. Conservatives were quick to connect the dots between major job losses in the oil and gas sector and the NDP’s arrival in power, and they continue to use them — facts be damned — to paint the NDP as incompetent stewards of the economy.

But there are some other dots they’re much less interested in connecting. Texas, a state with a very Republican governor and government, also saw huge job losses in its oil and gas industry over the same period. By September 2015, the Texas Petro Index (a “cross-section of economic indicators for the upstream oil and gas industry”) had fallen 27.7 per cent from its high in 2014. And like Alberta, its economy slowed to a crawl in 2016, with its GDP growing by just 0.2 per cent.

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In other words, there was very little difference between an NDP government in Alberta and a Republican one in Texas in the face of a huge commodity price crash. The truth is that Alberta, more than any other province in Canada, is at the mercy of economic forces beyond its control. You might think, after watching the catastrophic impact that COVID-19 had on oil and gas prices and employment levels, the UCP might be a bit less willing to trade in the idea that the NDP was single-handedly responsible for Alberta’s economic pain during its own time in office. Instead, they’ve been doubling down.

In fairness, they’re hardly the only conservatives pushing this particular narrative. It’s a reliable staple of the messaging from provincial conservative parties, especially when they’re up against an NDP opposition party. But whether it’s British Columbia, Saskatchewan, Manitoba, or parts further east, the NDP’s economic track record isn’t what most people have been led to believe.

Toby Sanger, the former executive director of Canadians for Tax Fairness, tried to underscore this reality back in 2015. He gathered data on provincial and federal governments and compared the performance of the NDP to the Liberals and Conservatives. As it turned out, real wage growth was stronger under NDP governments, averaging 0.89 per cent annually after inflation compared to 0.66 per cent under Conservative ones and 0.63 per cent under Liberal ones. At the provincial level, NDP governments also spent less, ran fewer and smaller deficits and saw higher corporate profit growth.

Then there’s Tommy Douglas, the patron saint of New Democrats in Canada. As the premier of Saskatchewan, his Co-operative Commonwealth Federation (CCF) never ran a deficit during 17 years in power and dedicated 10 per cent of provincial revenues to paying down debt built up by the previous Liberal government. Find me a conservative premier who can say the same thing (hint: you can’t).

But perhaps the best corrective to this long-standing narrative about the NDP’s economic nincompoopery is the six-plus years of John Horgan and David Eby’s government in British Columbia. Under their combined watch, the province’s economy has continued to grow and attract investment. When COVID hit, B.C.’s real GDP saw one of the smallest declines and biggest rebounds in Canada. By January 2022, it had posted one of the strongest employment recoveries in the country. And as Alberta Central noted in a recent report, real wage growth in Alberta has been negative since 2019 — you know, when the UCP took over — while neighbouring B.C. has seen real wages grow nearly 10 per cent. “What has been often referred to as ‘the Alberta Advantage’ is melting away,” its authors concluded, “and has almost disappeared, based on some metrics.”

Are NDP governments bad for the economy? As history shows, it’s quite the opposite — and that’s a story Rachel Notley’s NDP needs to start telling before it’s too late. @maxfawcett writes for @NatObserver

If this had happened under an NDP government, you know that conservative politicians and pundits would be practically waterboarding voters with the message. But because it happened under a government that also slashed corporate taxes and effectively handed the business community a multibillion-dollar gift, they’ve been conveniently quiet here.

That’s why it’s time for New Democrats to start making more noise about their economic competence and the track record of NDP governments in this country. They’re not the bumblers and boobs that they’ve been made out to be and their relative silence has allowed that myth to spread further and wider than it should. Correcting that perception, and clarifying what their record really looks like, should be a top priority for any New Democrat who wants to govern in Canada. This Thursday’s Provincial Leaders’ Debate would be an excellent time for Rachel Notley to start.

 

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Economy

Quebec proposes making French mandatory for all economic immigration programs – Canada Immigration News

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Published on May 29th, 2023 at 07:00am EDT

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Quebec is proposing that speaking French become mandatory criteria for provincial applicants.

Quebec Premier Francois Legault has proposed major changes to Quebec’s economic immigration criteria.

Speaking on May 25 with the Minister of Immigration, Francisation and Integration, Christine Frechette and the Minister of the French Language, Jean-François Roberge, Legault says the changes will ensure that nearly 100% of new economic immigrants to Quebec will know French before they arrive in the province by 2026. This is meant to promote Francophone economic immigration in Quebec.

“As we have seen for several years, French is in decline in Quebec,” said Legault. “Since 2018, our government has acted to protect our language, more than other successive governments since the adoption of Bill 101 under the Lévesque government. But if we want to reverse the trend, we must go further. By 2026, our goal is to have almost entirely Francophone economic immigration. We all have a duty, as Quebecers, to speak French, to transmit our culture on a daily basis, and to be proud of it.”

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Knowledge of oral French will be required for adults. This is meant to ensure that those who wish to settle in Quebec will be able to communicate in French throughout day-to-day interactions at work and in their communities.

The changes are part of a new permanent immigration program for skilled workers in Quebec. The province says the Skilled Worker Selection Program will “take into account the diverse needs of Quebec.”

Candidates in the program will be evaluated in four categories that have not yet been made clear, but the province says that three of the categories will require that the principal applicant and their accompanying spouse have knowledge of French.

There will also be revisions to existing programs. For example, the work experience requirement will be removed from the Quebec Experience Program for graduate students from a French-language study program.

Family reunification measures include making it mandatory for the guarantor to submit a plan for reception and integration that will support the learning of French for the person they are hosting.

Immigration is a shared responsibility between the federal and provincial governments. Quebec’s agreement is unique from other provinces in that it can select all its economic immigrants. Quebec does not have the authority to select family class sponsorship applicants or those who arrive in Canada as refugees or other humanitarian classes.

For 2023, Quebec has targeted that 65% of newcomers admitted to the province will be economic class.

Increasing immigration numbers in Quebec

The province is also considering raising the number of permanent selection admissions from 50,000 to 60,000 per year by 2027. This is in stark contrast to Legault’s recent comments that there was “no question” of Quebec accepting any rise in the number of newcomers and publicly rejecting the federal Immigration Levels Plan, which has a target of 500,000 permanent residents admitted to Canada each year by the end of 2025.

These changes also follow Quebec’s Immigration Levels Plan for 2023, where it was announced that the province would move away from plans that forecast only the coming year and begin introducing multi-year plans for immigration by 2024.

Why the changes?

Quebec is unique in Canada as it is the only province where French is the official language. The province is fiercely protective of its language, saying it is vital to protecting Quebec’s unique culture and status.

Legault is the leader of the Coalition Avenir Québec (CAQ) and is currently in his second term as Quebec’s premier, having been reelected last October. One of the main pillars of the CAQ party is to protect the French language in Quebec.

Immigration was one of the key issues in the recent election. Throughout his campaign, Legault said that Quebec would allow only 50,000 immigrants per year into the province as it would be difficult to accommodate and integrate more than that into Quebec society. He said that accepting more than that would be “a bit suicidal.”

Regardless, Quebec, like the rest of Canada, is experiencing a labour shortage as the population ages and the birth rate remains low. A report released last March by the Canadian Federation of Independent Business shows that the province could face an annual shortfall of up to nearly 18,000 immigrants, who would be able to fill Quebec’s labour needs.

Discover if You Are Eligible for Canadian Immigration

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Lira hits record low, but stocks rise after Erdogan win in Turkey

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The Turkish leader won the presidency for a third time after a run-off vote on Sunday.

The Turkish lira has plunged to record lows after the re-election of President Recep Tayyip Erdogan, a sign that currency markets are not confident in the country’s economic future after the longtime leader’s re-election.

The Turkish currency weakened to 20.01 to the dollar on Monday after the high-stakes run-off a day earlier.

But Turkish stocks, on the other hand, rose as Erdogan entered a third decade in power with the benchmark BIST-100 index up 3.5 percent and the banking index rising more than 1 percent.

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The lira fell to a record low as the country battles a cost of living crisis and depleted foreign reserves.

On the campaign trail, Erdogan pledged to slash inflation to single digits and boost economic growth, a message he reiterated in his victory speech late on Sunday. But analysts said his economic policies are unorthodox and predicted they will lead to more pain for Turks.

“In our view, Erdogan’s biggest challenge is Turkey’s economy,” Roger Mark, an analyst at the Ninety One investment management firm told the Reuters news agency. “His victory comes against a backdrop of perilous economic imbalances with his heterodox economic model proving increasingly unsustainable”.

Hasnain Malik, head of equity research at Tellimer, an emerging markets research firm, told the agency: “An Erdogan win offers no comfort for any foreign investor.”

“Only the most optimistic would hope that Erdogan now feels sufficiently secure politically to revert to orthodox economic policy,” he said.

Interest rate cuts sought by Erdogan sparked a devaluation of the Turkish lira in late 2021 and sent inflation to a 24-year peak of 85.5 percent last year. The president had argued that higher interest rates cause inflation while central banks around the world were raising rates to reduce price rises.

Turkey’s struggling economy, also reeling after the country’s devastating double earthquakes in February, was a major thorn in Erdogan’s prospect for re-election.

The leader has defended his economic policies, reassuring Turks that investment, production, exports and an eventual current account surplus will drive up Turkey’s gross domestic product.

 

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Economy

U.S. economy and new incentives put Canada at disadvantage in Stellantis negotiations, professor says

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Two weeks of negotiations between the federal and provincial governments and Stellantis have failed to produce a new deal for the NextStar EV battery plant in Windsor, Ont. Ian Lee, an associate professor at Carleton University’s Sprott School of Business, says the economic might of the U.S., coupled with the incentives offered in recent legislation, make it extremely challenging for Canada to compete.

 

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