Wednesday, July 29, 2009

Day vs. Flaherty: Who ya gonna believe on the economy?

Now is the time when we compare and contrast at Small De..., er BCer in Toronto:

Jim Flaherty:

Finance Minister Jim Flaherty says it might be premature to declare an end to Canada's recession.

The minister made the remarks Tuesday on his way into a Conservative caucus meeting.

"No, I think we will have to look back as we always do, and look at this quarter," Flaherty said when asked whether he agreed with the Bank of Canada's most recent assessment of the economy.

Stockwell Day:
I'm not kidding. The recession is over. Now I realize some of you may be saying, "hey, who gave Stockwell Day the right to say the recession is over?'

Strictly speaking, nobody gave me the right to say a recession had started, let alone declare it was finished. There is actually a technical definition which says if a certain number of measurable economic indicators are not met over a certain period of time, then, presto!, we're in a recession.

However, if those same economic goal posts are reached over a certain period of time then somebody can declare just as categorically that the recession has ended. In Canada's case that 'somebody' happens to be the Governor of the Bank of Canada.
Now, I know Flaherty is the finance minister and everything, whereas Day is good with a jet ski. Still, I feel like Stock has just a little more credibility on economic matters than Jimbo these days.

So I don't know who to believe...

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1 comment:

Lord of Wealth said...

If it takes 3 quarters of negative grown to call a recession why does it take 1 quarters of growth to claim it's over?

The only thing making Canada look like its recovering is recent higher oil revenues because prices have bounced back from their lows. Jobs and houses are still being lost, credit card defaults are growing, this is not a recovery, just a lull in the storm as the second wave of credit crisis will show Q3 and Q4 when another 1/2 trillion worth of home defaults hit the U.S. and 50+ more banks fail. The contagion will spread again wrecking the world economy

and yet Day is more credible, shudder!!!!!