The end of the year has brought about a few retrospectives on the economy, and a few forward-looking articles as well.
The question I have is this: how much longer will the actual recession last for Canadians? Take, for example, unemployment levels: Canada is around 8.5%, while the US is around 10%. Historically, Canada has a higher unemployment rate than the US.
While Canada fared better in terms of unemployment than the US did during the recession, the US recovery is likely to be much more dramatic than the Canadian one, particularly given that the Canadian government’s stimulus package is being scaled back, and ultimately will be ending faster than any other package, a classic mistake, according to Keynes. Therefore, Canada’s economy, while having fared better during the actual recession, will limp along while the US economy quickly recovers in 2010.
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