Quote:
Originally Posted by Sylvanfan
Not when the backbone of the countries economy is selling goods in a weaker currency. IMO hooray I can go to the U.S and spend $5 less on a shirt if I want. But the oil companies now can look to have all their steel designed, and built in the U.S and shipped to Canada and save a lot of money now. Or they might balk at the production costs that they now face in Canada and refuse to produce anymore oil.
What good is my purchasing power if I have no income with which to buy stuff? I've tried to look after my money, but I'm only 31 and don't have enough money saved to live out the rest of my life. I still need to draw an income and my earning ability is largely based on our core industries being willing to spend on expanding and upgrading their equipment. If they stop spending...well I have less money, and I have to stop spending, and eventually that trickles down, and it affects a lot of people beyond myself.
But if I was a retired Canadian who had 2 million in the bank or I had more than enough money to my name in assets that I could afford for our economy to crash and burn, I'd sing a different tune.
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Many industry will hurt, no doubt, but one good thing about the strong dollar is that Canadian economy will be forced to learn how to be compeditive, rather than gravy train off a crappy domestic currency.
The cost of living should come down a bit over time, those oakley's noted earlier will have to come down to par, cars may not because of the cost of handling.