February 26, 2014

Exports Must Replace Consumer Spending in Canada

I recently read an article in Business in Vancouver that said exports must replace consumer spending to drive growth in Canada. Here's the first para from the story:

When it comes to the engine powering future economic growth in Canada, prepare for a fuel switch: the indebted Canadian consumer is tapped out and will have to be replaced by an increase in exports, especially to emerging markets in Asia.

I have a few questions about this. Haven't Canadian consumers been driving massive imports from Asia? So if we start consuming less and exporting more to those Asian consumers, who will consume all those former Asian exports? Won't those Asian countries be expecting their own consumers to step up domestic consumption?

I also wonder why we intelligent humans still can't seem to figure out a way to have healthy economies that are not dependent on continuous pyramid schemes of endless growth.

Posted by Paul at February 26, 2014 11:44 AM