Monday, August 23, 2010

Stephen Harper's Economic Fairy Tale May Have an Unhappy Ending

So while the media has been ignoring the true picture of our economic position, especially when it comes to the 125 billion in sub-prime mortgages we now own, and the fact 22% of our unemployed have been out of work for more than six months; giving at least the appearance of handling the economy is tantamount to Harper's future.

But how long can he keep up the facade?

He's hoping to hold off going to election until the spring, but with the rising voices demanding his removal, it's going to be tough.

Economic growth is slowing in Canada, while the cost of living is on the rise. Should this become a trend, flat growth and higher prices, it wouldn't be good for Stephen Harper's political health. His prospects for re-election next spring, his preferred time to face the voters, depend on a continuing recovery.

But the inflation numbers, out on Friday, weren't good. The consumer price index rose 1.8 per cent in July compared to a year ago. Energy prices were up 7.9 per cent, while within that segment, electricity prices rose 9.8 per cent, with gasoline prices up 4.8 per cent. Overall, seven of the eight major components in the CPI rose in the last year. In the last month alone, the cost of shelter was up 2.9 per cent, while transportation costs were up 2.7 per cent.

And while he and Jim Flaherty are trying to duck the HST firestorm, remember that they were the ones who bribed the provinces to accept it.

I am glad that the NDP is making strides in BC. They were and are very good for that province.

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