Lawrence Solomon: Why Trump’s State of the Union speech will ruin Trudeau’s night
There is a possibility that U.S. President Donald Trump, ruin the night of Prime Minister Trudeau when he delivers his speech on the State of the Union to Congress.
There is no doubt that Trump made clear the level that the US economy has reached. Which is considered to take off the day after being elected as president of the United States in November 2016.
And after that, it instantly increased business confidence. Noting that companies could soon get rid of the immense drag of Obama’s politically correct interventions. In fact, the stock market soared along with it, investment increased and employment grew.
Differences in employment rates in Canada and the United States
It is necessary to mention that the United States now has an unemployment rate below four percent. This includes rates not seen in decades, or never, for blacks, Hispanics and women. In this way, this has caused many people to constantly enter the workforce to take advantage of the high-paying jobs that are offered. And it is that the participation rate of the workforce increases while the number of people with disabilities and food stamps decreases. The situation is such that employers are now so desperate to get help in the tight labor market in the United States. Adapting well their workplaces for people with physical and mental disabilities and they are even giving a second chance to people with criminal records.
While, for its part, in Canada, despite the boom of the US economy, the unemployment rate remains at 5.6 percent. This is established as almost 50 percent higher than that of the United States. Canada’s workforce is shrinking as wages struggle to keep pace with inflation. Even so, everyone in Canada is being affected, an example of this is investors in Canadian firms. And, since the election of Trump, the Dow Jones Industrial Average soared six times more than the S & P / TSX Composite Index.
Likewise, in the United States the energy dependence of foreign suppliers, often unpleasant, has vanished. In fact, the United States has reached an energetic ascent, unleashing a development of it.
Now, for Canada, the energy industry has also vanished, to become the nation’s greatest shame. In fact, the economic influence and political relevance of Canada for the United States have already been diminished, consequently, this also happens unavoidably for the international community.
Source: Lawrence Solomon | Financial Post