Originally Posted by DareBee  We have to look at the big(ger) picture.
Lower loonie means more contracts and exports to the states (Canada's biggest trading partner).
I do not do anything for the states, so what do I care?
WRONG
I build, repair and modify the machines and assembly lines for the companies that make sub-products. They sell the sub-products to a Canadian manufacturer who makes the main product. Then 90% of that product is sold to the USA.
If I am repairing a farmers combine, it is because he can make money harvesting a crop that is driven by commodity prices and exports to the states.
Everything is tightly interwoven.
The less us buys the less work I have (even though I do nothing "for" the states). The less money I spend at the local butchers....etc, etc.
With our high wages (dictated by our COLA), we need a weak loonie to compete with manufacturing out of the southern US (and Mexico). |
Very well stated...
Living in Ontario, I think I have seen the effects of the high Canadian dollar in the way jobs have been lost this past year or so.
It certainly is nice to see our buying power increase but, like all things, there is a price elsewhere.