Northern Economist 2.0

Tuesday, 23 May 2017

The Decline of Saving


Most of us are aware that Canadian households have reached record levels of indebtedness over the last few years.  Household debt in Canada is now over $2 trillion and household debt to disposable income ratios in Canada are now at 170 percent.  Less discussed is what has happened to savings.  While low interest rates have been a factor in Canadians being able to carry substantially larger debt burdens, they have also been a factor in reducing the interest income from saving and as a result have led to a drop in the number of savers.

The Bank of Canada rate dropped from 6 percent in 2000 to 0.75 percent in 2015.  Over the same period, the total number of savers in Canada as reported by Statistics Canada from data compiled from Income Tax returns (Table 1110036 - Canadian savers, by savers characteristics, annually) dropped from 4,808,930 to 3,356,840 – a decline of 30 percent.  Over the same period, the median annual interest income of Canadians fell from $400 to $230, a drop of 43 percent.

Tuesday, 16 May 2017

The Northern Ontario Growth Plan: A Summary Evaluation


The Ontario government released the Growth Plan for Northern Ontario on March 4, 2011 in response to years of slow growth and economic stagnation in northern Ontario. In an effort to improve the economy of northern Ontario, the 25-year plan was to guide provincial decision-making and investment in northern Ontario with the aim of strengthening the regional economy. The goal was strengthening the economy of the North by:
  • Diversifying the region's traditional resource-based industries
  • Stimulating new investment and entrepreneurship
  • Nurturing new and emerging sectors with high growth potential.
After five years, it was worth examining key economic indicators to see what if any improvements have occurred with respect to the economy of northern Ontario.  After a series of posts examining employment, new investment spending, consumer and business bankruptcies and employment composition, what conclusions can be drawn?

Sunday, 14 May 2017

Economic News Around the North: May 14th Edition

Well it has been a few weeks since I did an economic news round-up.  To start off, Happy Mother's Day to all the moms in northern Ontario and beyond! Here is a very brief sampling of some of the northern Ontario related bigger picture economic stories that caught my attention over the last little while.

There have been a few interesting items over the last few weeks.  To start off, both Lakehead and Laurentian universities will be looking for new Presidents as Dominc Giroux and Brian Stevenson nearly simultaneously announced that they will be moving on.  Both institutions are key components of the regional knowledge economy as well as significant economic engines in their own right and the choices made with respect to the next presidents will be critical to the region.

Lakehead University President Brian Stevenson to step down. CBC News. Thunder Bay, April 28th, 2017.

Dominic Giroux to leave Laurentian University for CEO's job at Health Sciences North. CBC News, Sudbury, April 26, 2017.

The actual role of a university president has become more difficult over the years given the increasing complexity of universities and the social and economic environments in which they operate.  However, the key roles remain threefold: vision, fundraising and community relations.  The day to day management of the university is generally delegated to sub-ordinates - or  should be especially  at larger places.  In the end, a successful university president must be judged on their leadership role in terms of providing a general vision of the university's role and articulately communicating it, raising funds - a difficult task in the limited economic environment of northern Ontario - and diplomatic service among  the many communities that the university serves ranging from alumni to business to government.  Good luck to the respective search committees!