When the Canadian dollar had a low value relative to the American dollar, many Canadian business were slow to increase productivity. For a time they could afford rigid labour contracts and still compete. That’s no longer possible.
Oh my god! The Progressive Conservative party has just implicitly admitted that Dutch Disease is a thing! They just admitted this is a problem, that is driving away manufacturing jobs from Ontario! Somebody call the Toronto Star!
Just so I don’t get accused of taking this out of context, this was just a small part surrounded by arguments against unions. No, I am not using this quote in a misleading way. This is an actual admission of Dutch Disease.
Dutch Disease is the economic reality (not theory) that due to a soaring resource sector (oil in Canada’s case) the dollar rises in value. Due to that rise in value, it costs more to invest in said country, thus driving away companies to invest in cheaper countries. Right now, this is true for Canada, with our dollar rising and rising, to a level that matches the American dollar. This, indeed, drives away jobs. This is the reality that the federal NDP accept, and the federal Conservatives deny.
It’s also the reality that the Ontario Progressive Conservatives, and Tim Hudak recognize.
Oh, I forgot to mention that he changed his mind on this issue. In June, he “maintained Dutch Disease in a myth in Ontario.”