By on April 10, 2014

800px-Oakville_Assembly-450x298

Globally, auto makers spent $17.6 billion on expanding manufacturing facilities – and none of that was spent in Canada.

Citing a study by the University of Windsor, The Globe and Mail reports that the last time any new investment was received by Canada’s industry was in 2012, when $180 million was spent on a single project. On the other hand, Mexico, which is enjoying a booming automotive sector, received $6.3 billion.

What was once the 4th largest vehicle assembly site is now the 10th largest, and output fell in 2013 by 4 percent. On the one hand, Canada is not alone. The report states that Germany has received no new investment over the past few years, and only nominal investments in Japan.

But all three countries face a similar problem. Nearby sites are cheaper to build cars in, at the expense of “domestic” locations. Former Easten Bloc countries like Poland, Hungary, the Czech Republic and Slovakia are popular sites for German OEMs, while Japanese auto makers have been ramping up production in Thailand. In both scenarios, the vehicles produced in those countries are considered to be just as high quality as their domestic counterparts, but at much lower costs.

Canada’s situation is particularly troubling. High costs for everything from labor to energy, combined with a reluctance on the part of the government (and general public) to match the generous subsidies offered by American and Mexican governments, has led to a major contraction of the auto manufacturing sector. Until recently, a high Canadian dollar was also weighing negatively on the sector, but a recent 10 percent haircut may help things along.

Canada will inevitably have to make the same choice that Australia faced just months ago: continue to offer subsidies to the auto industry to entice them to keep building cars in Canada, or watch it disappear. Proponents of subsidies argue that they are a pragmatic, reality-based choice given the current environment, and that the auto industry provides good, middle-class jobs in an economy that is in dire need of them.

Those arguing against will posit that the government should not be in the business of propping up uncompetitive businesses. The end of the auto industry will allow Canada to transition to a different kind of economy, and workers can simply go where the jobs are (namely resource and petroleum extraction in Alberta and other areas).

There are problems with both arguments. With a much smaller population than the United States, and a much higher standard of living than Mexico, continuing to compete in the subsidy game will simply be a race to the bottom for Canada. On the other hand, the notion that good jobs will materialize in place of auto manufacturing jobs lies somewhere on the spectrum between ideological fantasy and efficient-markets dogma. The expectation that laborers can pick up and go where the jobs are, in a quasi-nomadic fashion, ignores the many unquantifiable but tangible human and cultural factors that exist in the real world.

With that in mind, there’s one way to keep the workforce competitive and the economy strong, while avoiding the perpetual subsidization of the auto industry. Let the plants live or die on their own. Use the subsidy money to retrain former auto industry workers, where its picking up a new trade or more abstract programs like entrepreneurship training, business loans or anything else that can encourage productive activity in the economy.

It’s not like every plant will suddenly shut its doors either. Honda and Toyota will keep cranking out Civics and Corollas at their plants, which are the kinds of cars that Canadians have traditionally purchased (and given the way that current trends are going, are likely to keep buying). GM’s Oshawa plant, which builds the Impala, might not make it. And the Windsor plant, which builds the very popular Chrysler minivan, looks to be sticking around for at least a few years. If FCA wants to move production to Mexico or Italy or anywhere else in the global arena of automobile production, so be it. The money is better invested in the people of Canada. And with any luck, they’ll be able to vote with their newly fattened wallets when it comes time to purchase their next car.

Get the latest TTAC e-Newsletter!

66 Comments on “Editorial: Canada Can Keep Kissing Auto Investment Goodbye...”


  • avatar
    RobertRyan

    As I predicted Canada will in a very similar to Australia, faster than I expected. I think Canada has to now think what is beyond the Auto industry. Eventually the US will be doing the same.

    • 0 avatar
      NMGOM

      Robert,

      You took the words right out of my thoughts!
      Essentially, socialist governments can’t be conducive to new business investments. The tax structure inherently fights against them.
      But I’m not sure that American will be there for some time yet.

      ———————–

      • 0 avatar
        RobertRyan

        In a sense their reliance on cheap oil is starting to distort the US economy, it will be cheaper to produce elsewhere, the process has already started.

      • 0 avatar
        billfrombuckhead

        Yeah, except for those socialist nations like China, Germany, South Korea,

        • 0 avatar
          Big Al from Oz

          @billfrombuckhead
          Boy, what an ignorant comment!

          Germany is governed by a Republican equivalent party!

          South Korea socialist? WFT?

          You really should travel, or at least read and comprehend.

          The US isn’t the freest country. I don’t know where some of you get your information from.

          Economically the US’s freedom is below countries like some of the Scandanavian countries, Singapore, Australia, Canada, Switzerland, etc.

          Hmmmm…..socialist?

        • 0 avatar
          NMGOM

          H, BIll – - –

          I was wondering about those too.
          All three have locally free-market economies for everything except major resource allocation projects (rail systems, etc).
          But #1 and #3 are managed and directed economically as well.
          (We keep thinking of China as communist: it’s really not, and hasn’t been in two decades or more.)

          Actually Britain is in many ways more of a regulation-bound socialist country than the three above, and their economy shows it.

          Can you think of other ways to explain why China (for example) is able to operate with successful economic results?

          ————–

        • 0 avatar
          RobertRyan

          @Billfrombuckhead,
          The US is much more “Socialist” than Germany or South Korea, even the Chinese would not bring a automobile makers back from the dead

  • avatar
    Gardiner Westbound

    The CAW/Unifor refuses to be competitive with the UAW. No rational automaker will pay more when he can pay less a 100 miles away. The taxpayers should not subsidize the wage gap.

    • 0 avatar
      Slocum

      Right. The CAW could make concessions sufficient to outweigh the strong loonie and having lower-paying jobs rather than none. But they probably won’t. Or how about something obvious like, say, automatically adjusting compensation according the the exchange rate?

      • 0 avatar
        28-Cars-Later

        “automatically adjusting compensation according the the exchange rate”

        I *really* like this idea but I can’t see it happening, esp in a union. Even if you take the union out of it, say every quarter your salary/wage could change (I’m sure more often then not against your interests). Folks won’t be able to pay their bills…

      • 0 avatar
        IHateCars

        Well, the Loonie currently isn’t at par or even close with the US Greenback but I agree that the CAW has to think about making some concessions….a lower paying job is better than none.

        • 0 avatar
          DeadWeight

          International finance is creating currency wars, especially among nations heavily reliant on exports as a significant % of their GDP/GNP.

          The strength of the CAD against the USD has substantially damaged Canada’s competitiveness as a destination for manufacturing capex investment.

          It wasn’t that long ago when one USD purchased 1.56 CAD. In fact, I used to travel to Canada (Windsor) to watch Hockey games with friends at bars when we were 19 (the legal drinking age in Canada), and the then inexpensive here’s to the strong USD was a bonus (as was the 5% to 7% alcohol by volume standard Canadian beer).

          Canada & Australia are remarkably similar in that they are heavily natural resource dependent, rely in one big trade partner as a % of their trade (Australia relies on China while Canada relies on the U.S.), both have massive housing bubbles at present, and both are currently facing an erosion in their manufacturing & industrial base, at lest in significant part due to global currency trends.

          • 0 avatar
            Big Al from Oz

            @DeadWeight and other armchair economists, both socialist Keynesians (wets) and realists,

            Here’s an interesting read (the link). Our economy has hit bottom with a paltry 2.9% growth this year. Next year it will rise the 3%+. Many countries wish they had ‘hard’ times like we are having.

            Unemployment has dropped to 5.8% from it’s high of 6.1% in the last month. Business and consumer confidence is high and interest rates will remain low up to 2018.

            Housing is booming, due to our free economy, Chinese investors are buying up real estate.

            It appears that maybe we aren’t as ‘bad’ off as some commentators and bloggers on this site presume.

            The US will rise, but not to the levels it once had.

            Australian home prices have traditionally been high by US standards, but we haven’t arrived at a housing bubble.

            This year or next Australia will become the world’s largest exporter of LNG. It’t combined value will be greater than iron and coal.

            China does represent a large part of our export and import markets. LNG should reduce the effect China does have.

            I do think Australia will be the globe’s largest exporter of energy considering we are the largest LNG, coal and uranium exporters.

            As for manufacturing, I wouldn’t worry about some manufacturing off shoring. Most jobs (middle class-blue and white) are becoming automated. Menial jobs are next to go.

            It shows how menial jobs might actually require more effort than we give them credit for. Hmmmm, us educated are the ones that have jobs automated and off shored first.

            Micro-economic reform is needed, trade barrier dropped if you want your country to achieve and succeed.

            http://www.abc.net.au/news/2014-04-10/kohler-following-keatings-lead-on-reform-finally/5378090

          • 0 avatar

            > @DeadWeight and other armchair economists, both socialist Keynesians (wets) and realists,

            Quite amusing considering who this is coming from.

            Outside of the free money coming from the ground and free money coming from china’s party corruption it’s hard to say what else Oz has going for it other than maybe bogans competing for exceptionalism with their peers in colonies.

          • 0 avatar
            Big Al from Oz

            @u mad scientist
            I don’t mind if we are making money from the Chinese. They actually are in debt to Australia.

            It’s fools like you that purchase Chinese goods, like the device you are using right now that is consuming our resources.

            Most every country has a part of Australia in it. It makes me feel good.

            Us colonists and bogans seem to be doing well on our isolated island.

          • 0 avatar
            RobertRyan

            @U Mad Scientist
            I am as faraway physically from Big Al from OZ as you can get. In the bottom end of Australia: Housing is going through the roof, selling hordes of properties. Automobile sales per capita are on par or better than the US, RV Sales another general indicator are booming.
            So if that is poor , what is doing really well like?

          • 0 avatar

            > I don’t mind if we are making money from the Chinese. They actually are in debt to Australia.

            Just like the US is to the chinese. They have your valuables and you have a bunch of not-even-paper IOUs.

            > Housing is going through the roof, selling hordes of properties.

            Value comes from productivity, so if the shell game promotes new building, that’s great. Otherwise, welcome to the US circa a few years ago.

            > Automobile sales per capita are on par or better than the US, RV Sales another general indicator are booming.
            So if that is poor , what is doing really well like?

            Free stuff coming out of the ground is a good thing for those fortunate enough to happen upon it. Serendipity and theft/genocide’s how the US came a substantial portion of its wealth, too.

    • 0 avatar
      mikey

      @Gardiner.. Do you know what the real total wage gap is? Factor in health costs, and a 90 cent dollar.

  • avatar
    gtrslngr

    Todays Theme [ stating the obvious ] Pt III

    Gee …. Seeing as how Governments worldwide spend more money subsidizing automakers than is ever returned back into their economies …… A lesson Australia finally came to the conclusion of … Ya means Canada’s actually following suit ? BTW … the EU’s having a very close look at this economic reality … and the TPP [ Trans Pacific Partnership ] if it comes to pass will no doubt enlighten US politicians as well ..

    Golly … common sense – wisdom and discernment coming back to the fore .. telling automakers to either get their goram acts together or shove it ? Can this possibly be ?

  • avatar
    Speed3

    In economics its called the Dutch Disease. The increase in production of oil from the Alberta tar sands brings in revenue and strengthens the Canadian dollar. This has a crowding-out effect on other sectors and they lose their competative edge.

    • 0 avatar
      mikey

      @Speed3….Yup.

    • 0 avatar
      Magnusmaster

      More like First World disease. In the old times manufacturing was done in first world countries and agriculture on third world countries. Over time with technological advances agriculture is worth less than nothing and easy manufacturing, such as assembling cars, has been sucessfully outsourced to peripheral countries. First world countries now rely on their near monopoly of R+D and important technologies such as microchips, skilled services and very complex manufacturing to provide robots to manufacturing third world countries.

  • avatar
    mikey

    How about bring a modern version of the “auto pact” back into play.

    So simple. If you want to sell one here ,build one here. Toyota, Honda Ford, Chrysler and GM are currently running plants, employing Canadians,and selling cars. Fair enough.

    What does our Prime Minister do? Makes a free trade deal with Korea. What a slap in the face to Ontario, and our auto industry.

    • 0 avatar
      jjster6

      @Mikey… protectionism is not so simple. Trade is a reality of economics back to the days of the Romans. Trade means allocating resources to where they are most productive.

      When someone starts with the “sell here, produce here” arguments my first question is where will Canada put the Banana plantations? Sure Canada can do it, but producing Bananas in greenhouses will up the price to about $400/lb. instead of $0.79/lb (I made up $400 but the point is price will be much higher than importing).

      Now instead of letting a free market decide where to place production, you will have government officials making the call. Prices go up, consumers get screwed, and we all end up with less.

      • 0 avatar
        mikey

        @jjster6…Yeah, your probably right. Letting government officials make any call, is truly frightening.

        Oshawa is our home town. Watching our community go from a lunch pail town, to a Toronto bedroom community isn’t easy. I’m seeing a “way of life” vanishing.

        I guess, that’s life. I better stay away from commenting on higher economics. i’ll stick with what I know.

        Besides…Bananas are a staple of our diet!

        • 0 avatar
          jjster6

          @mikey, I’m impressed. Whenever I make that point I usually get some angry tirad about how I’m a slave to evil corporations that are out to screw the common man. It’s refreshing to reaed your reply.

    • 0 avatar
      danio3834

      No thanks. The price disparity between the same vehicles in the US and Canada is already high enough. Canadians shoudn’t have to put up with a worse value proposition to prop up an industry. If Canadians care about “buy local” when it comes to cars, they would do their research and only buy the products made in Canada. Since they don’t already demand it with their wallets in any meaningful way, why force it on them?

  • avatar
    ClutchCarGo

    How about tieing subsidy $ to a govt ownership stake in the subsidized facility? Not the auto corp, just the plant. This way the mfr can’t walk away with the subsidized equipment when they get a better deal elsewhere.

    • 0 avatar
      jjster6

      So now everytime the government passes a regulation it will be for the good of their investments. They own a mini-van plant (theoretically) put a tax on small cars and big trucks. Or make vehicles other than mini-vans have some safety feature that up the price. Government ownership just doesn’t work. Period. Look no further than Communist Russia and China. They learned that the free market, with all of its problems, is still much better than the alternative.

    • 0 avatar
      RobertRyan

      Made no difference in Australia, they walked away anyway

  • avatar
    Landcrusher

    The cruelest part of propping up the companies is that they then hire a whole new generation of workers who will one day be subjected to downsizing and looking at their town’s only large employer shutting down.

    The whole point of creative destruction is to tear off the bandaid early and get the healing process going. We have as much systems as we could have to keep people from starving in the bad times (actually too many programs such that they could do better with streamlining).

  • avatar
    mikey

    @ Derek…Good article, and well researched. Just in the name of accuracy {re Oshawa}

    The “classic Impala” along with the overflow Equionox from the Cami plant are built on the consolidated line. One shift, with the odd Saturday O.T in the mix. Metal for the old Impala, and some of the Cami, is stamped in Oshawa. The consolidated plant will close within the next two years

    The 3 shift “Flex line” is building, and stamping the Camaro. Oshawa is exclusive supplier of the Camaro. Flex also runs “some” of the new Impala. The metal comes up from the states. They also run a Buick and a Caddy, in low numbers. Flex is on a two week lay off right now. Rumour has it, more down time coming???.

    The “elephant in the room” is 2016. In 2016 the Camaro will be going to the USA. In 2016 the Consolidated plant will be gone. In 2016 GM will have met their requirements, of the 2009 bail out. To secure the bail out GM had to maintain 16 percent of production in Canada.

    In 2016 the UNIFOR/ GM Canada agreement comes open.

    Things may get ugly?

  • avatar
    thegamper

    The US presently has a boon from cheap energy and a wounded UAW. If wages can be kept in check, cheap energy just may prop up manufacturing for a few decades in the US as there are a number of other factors that make manufacturing here desirable. I think the US has a ways to go before it becomes Australia/Canada. There are many talking heads that are predicting a manufacturing boom in the coming years, mostly due to cheap abundant energy. We will see.

  • avatar
    mikey

    I think, while Canadian situation is similar to Australia. We do have some advantages. Most Canadian manufacturing is within 100 miles of the USA border. As far as energy goes? Well…were not lacking that stuff either.

    • 0 avatar
      Pch101

      With respect to cars, the Aussies and Canadians have little in common. Australia is an isolated island that never provided any advantages, while Ontario is essentially the US with a different currency.

      What’s bad for Canada is the movement of the US auto industry away from the Rust Belt, as Mexico and the Southeast US become more important.

      • 0 avatar
        Lou_BC

        @Pch101 – Isolated island? is that a metaphor? Australia is a continent.

        The Auto Pact is what turned Ontario into an equivalent of a US state. The same pact as Mikey pointed out that if you want to sell here you have to build here.

        I do agree that the exponential rate of decay in the USA auto industry around the Great Lakes is contributing to the death of the auto industry in Canada.

        I do agree with the author. Do not invest in propping up industry. Invest in education and let the chips fall where they may.

        • 0 avatar
          Big Al from Oz

          @Lou_BC
          It must be an island.

          Pch101 stated so.

        • 0 avatar
          Pch101

          “Australia is a continent.”

          The continent of Australia includes New Guinea.

          The country of Austalia is a large island that includes some other smaller islands such as Tasmania. Referring to it as an island is both literal and metaphorical.

          But in any case, its auto industry existed for as long as it did only because of its trade tariffs and content rules. No one should be surprised that is about to disappear, now that the protections have been reduced as much as they have been; a 5% tariff and luxury car tax aren’t enough to protect the domestics.

          • 0 avatar
            RobertRyan

            Well I will give you points for trying even if your answer is totally wrong. No the continent of Australia does not include New Guinea. Changing tastes not tariffs killed the Automobile industry as it is most likely going to do the US one.

          • 0 avatar
            28-Cars-Later

            “When world sea levels were low, the two shared shorelines (which now lie 100 to 140 metres below sea level),[2] combining with lands now inundated into the tectonic continent of Sahul,[3][4] also known as Greater Australia.[5] The two landmasses became separated when the area now known as the Torres Strait flooded after the end of the last glacial period. Anthropologically, New Guinea is considered part of Melanesia.[6] Politically, the western half of the island comprises two provinces of Indonesia: Papua and West Papua. The eastern half forms the mainland of the country of Papua New Guinea. The island has a population of about 7.5 million, with a very low population density of only 8 inh/km2.”

            http://en.wikipedia.org/wiki/New_Guinea

          • 0 avatar
            RobertRyan

            @28days-later,
            Right answer.

      • 0 avatar
        Big Al from Oz

        @Pch101
        Expand; “provided any advantages”.

        This should be an entertaining read.

    • 0 avatar
      RobertRyan

      @mikey
      Unfortunately the US has a “bring it home”policy. As well Canada does not haves major design input into the car it assembles. Ford is actually increasing the design and engineering capability of its Australian plant to work on future models after local production ceases

  • avatar
    carguy

    Derek, I agree 100%. It is not the governments role to fight against long term industry trends by propping up uncompetitive industries. However, government should definitely have a role to assist those affected by the change to retrain and gain jobs in other sectors. Its a good investment as it returns the jobless to productivity quicker and increases the skilled labor pool for other industries.

    Unfortunately with the current bi-polarity in politics the left will insist to prop up industry at all costs and the right will deem any effort to retrain the jobless as socialism for moochers. Pragmatism, unfortunately, is the first victim of a polarized political system.

    • 0 avatar
      Landcrusher

      Actually, both sides fight retraining. The left has been attacking the for profit education companies using the fact that a lot of them were shams to get poorly managed education loans into, the out of, the hands of the students. The reality is they are trying to keep the goodies in the hands of “non profit and government” educational (aka for guaranteed income) institutions.

      If you really just retrain without indoctrination, you might lose the votes of people, after all.

      What we really need is to figure out how to get companies to train people to do things instead of trying to just hire people who already know how or import workers who can’t change jobs. Certainly, we could get away from sending kids off to get four year degrees in English while demanding Spanish as a requirement for so many of the jobs outside the military that the government actually makes.

      • 0 avatar
        Lou_BC

        @Landcrusher – the problem with the education system is the fact that all of those “feel good” hippies of the 60′s are the ones controlling the system. The mantra “it doesn’t matter what you do as long as you feel good about yourself” is indirectly killing 1st world countries. We already see college and university graduates with no hope of employment. The BS line that a degree will guarantee you a good job is just that…BS.

        I’ve already been telling my kids that it is important to do what you like and enjoy what you do but “feel good” doesn’t put food on the table.

        One needs to be careful and pick an education path that has a future whether it be a trade or a degree.

        Governments can help steer the process but it can become another form of subsidization.

  • avatar
    Big Al from Oz

    As staunchly as the Canadians’ like to project their independence they are locked into the US economy.

    Especially since the GFC the Canadian economy is slowly moving away from their US reliance.

    Australia has never had this reliance with the US. We have a very strong political alliance with the US, but economically we have never been tied to it’s economy. This is an advantage for Australia when dealing with them.

    The Canadian’s shouldn’t fear the loss of jobs that can be done cheaper in a developing nation. If the US wants to maintain and subsidise let them as it will affect their standard of living.

    The Canadians have been able to diversify with commodities, where the US can’t.

    Car assembly only represents a small part of the total transportation industry. Component manufacturing will still exist.

    As for the people who lose their jobs, well, sadly or gladly they will have to find new jobs.

    What are the candlestick makers of old doing?

    As Derek stated, it’s a race to the bottom with subsidisation and handouts for any industry.

  • avatar
    elimgarak

    In the medium run you will see production come back IMO as factories become more and more automated and the biggest costs become shipping/supply chain.

  • avatar
    jimbob457

    Managing the economic decline of any local industry is never fun. As a boy I remember watching the old labor-intensive cotton culture of the rural south slowly die as mechanical tractors and cotton pickers took over. Using tax subsidies to keep at least part of a declining industry alive for at least a while often makes sense to a limited extent. Why totally give up and just walk away from massive amounts of local structures and infrastructure? Better though to use tax breaks to attract the next big thing, if only you can. Easier said than done.

  • avatar

    > Those arguing against will posit that the government should not be in the business of propping up uncompetitive businesses.

    Almost no business in the first world is competitive at least in terms of labor costs.

    Some types of labor just happen to be more captive than others, and thus increasing free trade is *equivalent* to “shift from manufacturing to ‘services’ sectors”.

    Quite ironic when the service-sec. white-collars’ schadenfreude only forecasts greater competition for their own jobs.

  • avatar
    scwmcan

    As a recent hire at the local GM plant I am hoping that these dire predictions don’t come true quite that quickly ( St. Catharines powertrain for those wondering). Since I have a college degree in another field already I can say that even at the temporary position pay rate, it pays better than anything I can get locally ( or indeed within 2 hours from my current residence), and it is not like my degree is in a silly field, it is in Electronics Engineering Technology ( you know one of those fields that the current conservative leader of the opposition here in Ontario thinks is going to prop up the Ontario economy). The problem is that there is an influx on immigrants who are willing to to these jobs at close to minimum age and it winds up that even someone with about 20 years of experience in the field has to drop their wage expectations to that level which is not a living wage, on top of that even to get that rate of pay means a drive of about an hour ( or worse). On top of that these jobs are also being outsourced to off shore companies. Not everyone is able to move to Alberta ( and the oil is only going to last so long), besides they don’t want everyone anyway :). That said FCA’s expectations for taxpayer contributions to their plant were a little out there, so I can agree that there have to be limits, it is just that someone needs to figure out ( I.e. Do some actual planning, and research instead of just saying oh it will all work out evenly in the end, it won’t without the planning) what direction people need to be pointed in, society won’t work ( and the economy will crumble) if 90+ % of the people can’t afford to live ( and BTW raising the minimum wage is not the way to do it either, that just winds up raising the costs of everything, and the people who were making more than minimum wage don’t get an equivalent increase so their buying power goes down as well, putting more people into financial difficulty ( and this is coming from someone who identifies with the “left” more than the “right”). Also I have to say that as far as I can tell the new hires at our plant are not expecting things to remain the same as they have for the last 30 years prior, so I am not sure that the union knows what we are hoping for in the first place ( unlike the people who have been there for 28+ years we actually care if the plant stays open and keeps employing us, but I don’t think a drop from what our hourly rate is as temps would be on the cards, but I don’t know how many expect to get what the long termers are getting either, of course I haven’t talked to everyone either so I could just be generalizing on too small a sample as well). In any case there has been investment in the past year, the St. Catharines plant had a new line for the Gen V v8 put in and start up last year ( no the cost could have been budgeted in 2012, but the actual equipment etc was put in last year, that makes me wonder if we are really as uncompetitive as the manufactures want to make us out to be).
    Sorry for the long post.

    • 0 avatar

      > not like my degree is in a silly field, it is in Electronics Engineering Technology ( you know one of those fields that the current conservative leader of the opposition here in Ontario thinks is going to prop up the Ontario economy). The problem is that there is an influx on immigrants who are willing to to these jobs at close to minimum wage

      The economy itself will be fine for quite a while. This is more about distribution of money.

      BTW, minimum wage is just socialism designed to price out more jobs at lower wages. Plenty of work available on Mechanical Turk for a few cents per task.

      • 0 avatar
        scwmcan

        Well if the majority can’t afford to buy anything the minority aren’t going to be buying millions of for example cars that the majority do,, I.e. If most people cant afford to buy a companies products ( including the companies employees) where are they going to sell them to make money ( I guess you can always get a 100 year loan for a car, but that only works so long too). I am sure the Eco on my will go along selling commodities, but no actual adding of value ( I.e. Only selling raw products not finished goods), but again that will only last so long, and once too many people can’t afford to live than there may be other problems, not going to happen instantly of course.

        • 0 avatar

          > Well if the majority can’t afford to buy anything the minority aren’t going to be buying millions of for example cars that the majority do

          No, but they’ll spend it on something else, like inflating commodity prices and using the profits to creative even more service sector jobs.

          > once too many people can’t afford to live than there may be other problems

          That and Blackwater shares.

    • 0 avatar
      jimbob457

      @scwmcan
      You got all the way through college, but never learned about paragraphs? Maybe immigrants are Canada’s only hope for the future.

      • 0 avatar

        > What was your major?

        LOL, at least he learned how to read.

      • 0 avatar
        scwmcan

        Oh and just a further note, I don’t object to immigrants per say, when they are entering our job market they may not realize that they are accepting pay rates that are much lower than what they could have received. I am sure to them that $10-12/ hr sounds great compared to $10/ day where they might have immigrated from.

        • 0 avatar
          Big Al from Oz

          @scwmcan
          Immigration creates employment. It doesn’t take ‘your’ job.

          More immigrants require cars, housing, food, consumer products and on and on.

          So, how can this take your job?

          You seem quite daft or ill informed on this issue.

          Seeing since you can read, now concentrate on comprehension.

    • 0 avatar
      Lou_BC

      One can get a job doing oil and filter changes on heavy machinery in Fort Mac and get paid $45.00/hour. The problem is a shack will cost you a million or more.
      Many commute i.e. live in Calgary or elsewhere and fly in, do their block of shifts and fly home.

      It does f^ck up an economy because it puts unrealistic wage expectations on everything else.

  • avatar
    scwmcan

    Sorry late night writing ( while in bed) tends to make me ramble on, I should know better. I am quite capable of formatting a proper paragraph, so criticism accepted.

  • avatar
    mikey

    @ scwmcan…I assume your an hourly {SWE}? in the St Kitts plant? I did 36 years at Oshawa. I’m glad to see St Kitts has called all the preferential hires back from Oshawa.

    The good news is you have an education. Keep your resume sharp, and stash some cash.

    BTW The folks at TTAC are always looking for inside people. Don’t worry about you paragraphs etc. I hold the position, as most illiterate here. I’m not about to give that up.

    I’m looking forward to more comments from you.


Back to TopLeave a Reply

You must be logged in to post a comment.

Subscribe without commenting

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Jack Baruth, United States
  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Vojta Dobes, Czech Republic
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, Abu Dhabi
  • Mark Stevenson, Canada
  • Cameron Aubernon, United States
  • J Emerson, United States