Our reliance on the United States has led us to a situation in which we are so intertwined that Canadian businesses nearly wholly depend on Americans to be customers and suppliers.
In a time of climate crisis, exporting oil is just furthers the damage to the environment and the future. There are other options that can actually benefit domestic living standards.
"The book argues that trade deficits, which result from imports being higher than exports, are actually beneficial in material terms. They mean that foreigners are willing to sacrifice more real goods and services than they expect back in return from the nation which means the citizens of the nation are better off.
Living standards are measured in real terms.
It is true that trade alters the pattern of resource usage in a nation and some jobs might disappear as capitalist enterprises see advantages in producing elsewhere. That is the logic of capitalist – to pursue surplus value wherever they can get it.
But....the US government can, in Mosler’s words:
ALWAYS support domestic output and sustain domestic full employment with fiscal policy (tax cuts and/or govt. spending), even when China, or any other nation, decides to send us real goods and services that displace our industries previously doing that work.
This is not to say that changes in the industrial composition of output are smooth and painless. Workers in the industrial belt of North America have certainly faced the cold winds of capital mobility.
But the resources left idle by these changes can always be brought back into productive use by appropriate government fiscal strategies, even if other supports also have to be put in place (such as, re-training) to make the transitions smooth."
First off, the state of California has the population of Canada basically.
We are approximately 14% of the size of the USA.
So of course the trade deficit with USA is natural.
We produce more than we can consume, where the USA wants everyone elses products.
Also our dollar sucks compared to the USA.
It was $1.30 in the summer, now its $1.40
When a USA company is looking at buying comparable products in the USA or Canada, they can almost by 3 canadiabn items as compared to 2 USA made items.
In a time of climate crisis, exporting oil is just furthers the damage to the environment and the future. There are other options that can actually benefit domestic living standards.
Seven Deadly Innocent Frauds of Economic Policy
http://bilbo.economicoutlook.net/blog/?p=32284fh
"The book argues that trade deficits, which result from imports being higher than exports, are actually beneficial in material terms. They mean that foreigners are willing to sacrifice more real goods and services than they expect back in return from the nation which means the citizens of the nation are better off.
Living standards are measured in real terms.
It is true that trade alters the pattern of resource usage in a nation and some jobs might disappear as capitalist enterprises see advantages in producing elsewhere. That is the logic of capitalist – to pursue surplus value wherever they can get it.
But....the US government can, in Mosler’s words:
ALWAYS support domestic output and sustain domestic full employment with fiscal policy (tax cuts and/or govt. spending), even when China, or any other nation, decides to send us real goods and services that displace our industries previously doing that work.
This is not to say that changes in the industrial composition of output are smooth and painless. Workers in the industrial belt of North America have certainly faced the cold winds of capital mobility.
But the resources left idle by these changes can always be brought back into productive use by appropriate government fiscal strategies, even if other supports also have to be put in place (such as, re-training) to make the transitions smooth."
First off, the state of California has the population of Canada basically.
We are approximately 14% of the size of the USA.
So of course the trade deficit with USA is natural.
We produce more than we can consume, where the USA wants everyone elses products.
Also our dollar sucks compared to the USA.
It was $1.30 in the summer, now its $1.40
When a USA company is looking at buying comparable products in the USA or Canada, they can almost by 3 canadiabn items as compared to 2 USA made items.