As
per the article, the federal government is planning to invest another $250
million into the automotive sector to help manufacturers develop stronger,
safer and more fuel-efficient vehicles. Prime Minister Stephen Harper announced
today at the Ford plant in Oakville Friday that the feds are going to renew the
Automotive Innovation Fund to help the struggling automotive industry. The
industry had significantly increased his sales since the beginning off the
contract in 2008.The government says the initial $250 million spurred $1.6
billion in spinoff investments. Friday's announcement followed surprising
economic numbers that showed 40,000 jobs were created last month — 30,000 of
them in Ontario — to bring the unemployment rate to a four-year low at 7.1%.
The deal is really good for the economy because, as the results explain it self,
it has created more jobs and have caused more circulation of currency within
the economy.
Personally
I support this contract by the feds because, although it is basically just
another publicity stunt by Harper to stay in power, it has also helped Canada tremendously.
Yes, Canada doesn't have a car company/manufacturer and thus all the money that
is being pumped into this sector are being granted to the automakers who are
either American or other foreign maker but on the bright side a lot of new jobs
have been made and as a result several Canadians have been hired. Also, since
this money is mostly for the manufactures of the other countries such as
America, it will help to improve their economy as well. If the economy of
America improves, it is also beneficial for us because our nation is heavily dependent
on our neighbors. But one negative of this deal is that, the loyalties of the
companies will stay within their countries of origin so although Canada
invested so much money into the automobile industry, it won’t greatly benefit
us. I think that the automobile industry is actually doing pretty good already
and this was just another public stunt by Harper so prove that he is a social
idealist and he cares about the economy whereas this move probably might have
just added a few extra millions to his rich friends and not really affect the
middle class people.For more information on this article, please refer to the original article at :
http://www.torontosun.com/2013/01/04/canada-does-not-intend-to-remain-a-long-term-gm-shareholder
INNOVATION, INNOVATION, INNOVATION - as per this word cited in this article a few times (and the name of the federal fund), this, IMO, is the only way Canada's automotive sector will survive and flourish. The reality is, many, many Canadians are employed by the automotive sector in Canada. A total collapse of it, would have a huge impact on unemployment - high unemployment rates have many negative side-affects on a economy.
ReplyDeleteGood job Dpac at considering some different angles in your post and keeping an open mind to political moves/strategies and the potential motives behind them.
I think that this is good for the economy because it would provide more jobs, therefore lower unemployment rates. Also, these safer vehicles will be good for the environment.
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