Wednesday, March 27, 2013

"Dead Cat Bounce" Twice - C.D. Howe on Mulroney's GST, Harper & Clark's HST??? ... employment drops for ten years

It's been another one of those days, while researching for another Post.  We came across one of those most memorable "quote of the day" documents ......   And it was written on a C.D. Howe  notepad in October of  2012.  Three years after Campbell and Hansen came up with the HST for British Columbia in 2009.

"OUR" HST was into put force July 1, 2010.  ......  and will be Put to rest on April 1, 2013.

What a wasted experiment!.... like that other experiment by the BC Liberals: Pacific Carbon Trust!  paid for out of the budgets of schools, universities, and hospitals.

Our line of thinking today is that C.D. Howe did have a negative opinion on what the HST would do to employment in British Columbia, and was ignored by the Gordon Campbell's BC Liberals.  The larger question is what if  C.D. Howe had been asked by Brian Mulroney as to the fortunes of his GST (as mentioned in his 1990 Throne Speech).   Employment increasing or decreasing?   Would C.D. Howe have predicted a similar drop of fives years or more.... of employment like they did for Our HST?  Would they have looked at the history of the Employment rates for Canada from 1976 to 1989 to determine whether it would increase the chances of his not stepping down as Prime Minister so that Kim Campbell (no direct relation to El Gordo) wouldn't get demolished in the Federal Election?

Did C.D. Howe look to the past before they offered their opinion in 2009?

What we have here is a document that explains what has happened since 1926, and it includes dates that we didn't know existed... except for Mulroney's GST implementation... and of course Campbell Do or Die implementation of the HST without discussing it during the lead up to the 2009 provincial election.

Commentary 366:  Turning Points: Business Cycles in Canada since 1926 spells it out on    Page 22 of  28:

...... Employment growth remained solid, however, until the second quarter of 1990, when it joined all the other economic indicators in four quarters of accelerating decline. Monthly GDP dropped sharply in April 1990, followed shortly by employment, which points to a cyclical peak in March 1990 (see Table 13). The contraction worsened significantly in the first quarter of 1991, when the combination of the Gulf War and the introduction of the goods and services tax (GST) sharply depressed consumer spending. Both real GDP and employment bounced back in the second quarter of 1991, raising hopes that recovery was under way, but in retrospect this was a classic example of a so-called Dead Cat Bounce. - Philip Cross and Philippe Bergevin

Mulroney's Conservative Government was well on their way to the bottom of the heap.... just like Gordon Campbell in 2009.....and it's taken the workforce of Canada 14 years to get back on their feet after good old Brian.

What kind of statistics will be written ten years from now, after Campbell/Clark's BC Liberals have finished destroying British Columbia?

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