With the Canadian dollar now trading below 77 cents US, and the price of crude oil well below $50 US a barrel a rather interesting economic dichotomy is in play in the opening week of the federal election campaign.
Speaking to the Business News Network, economists like Paul Ferley of RBC Capital Markets say, it all has to do with negatives associated an investment holding pattern, and positives associated with consumer spending
“The hit in investments is negative and fairly significant but you’ve got to realize lower gasoline prices are like a tax break for consumers. Consumer spending is much larger, more significant than investment. As well lower oil prices are a positive shot for the US economy and should spur a little bit stronger growth south of the boarder. It’s a stronger market for our exporters with that trend embedded with the weakening Canadian dollar.”
Among the beneficiaries are those who count as potential consumers, American big game hunters, and Scott Ellis of the Guide Outfitters Association of BC says, that’s particularly true in this area, where the government’s revised harvest allocation policy has not been widely felt.
“We like where the dollar is,” he said. “The guide outfitters were losers in the allocation policy and your particular region really has no impact by the allocation decision. While it was talked about around the province, the Fort St. John area, moose are general open season, you don’t have to draw for them. Same as sheep. The allocation policy really had no impact on the average hunter.”
For the average non-hunter, allocation is the process by which the available harvest of a particular wildlife population is divided among consumptive users, but only after the rights of First Nations have been considered.