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Author Topic: Economic Crisis Slams Canada  (Read 1816 times)

Offline CareDC

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Economic Crisis Slams Canada
« on: March 30, 2009, 12:57:57 PM »
The first two months of 2009 were a disaster for working people; 240,000 workers lost their jobs. The job losses in January were the largest monthly loss ever in Canada. November to February losses are the steepest since the crushing recession of 1981/82.

Since June of 2008, Canadian households have lost 8% of their net worth. Household credit debt grew by 2% in the fourth quarter of 2008.

Two of the big three U.S. automakers in Canada, General Motors and Chrysler, say they will pack up operations in Canada if they don't receive nearly $10 billion of taxpayer bailout money. Together they employ some 20,000 workers in vehicle assembly and tens of thousands more in parts manufacture, sales, and service. Chrysler wants its workforce to concede even deeper cuts in wages and benefits than those voted by GM Canada workers in mid-March.

Cuts to social services will soon be the order of the day as governments cry poverty and deficits mount. Bank analysts say the federal government will have a budget deficit of $40 billion in fiscal 2009. The government of Ontario, the province with the largest manufacturing employment, has announced the largest budget deficit in the province's history for 2009, $14.2 billion.

If deep cuts to social services have not already begun, it's because the federal government and some provincial governments, notably in British Columbia, are positioning themselves for re-election before swinging their axes.


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