SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, Elizabeth White, Esmeralda Swartz, AppDynamics Blog

News Feed Item

America's Post-Election Political Gridlock, Policy Malaise Could Stifle Canada's Economic Growth

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/13 -- The combination of policy uncertainty and political gridlock in the United States following the 2012 election could harm economic growth in Canada, warns a new series of essays from the Fraser Institute, an independent, non-partisan Canadian think-tank.

"While Canadians are not allowed to vote in U.S. elections, our fortunes and prosperity are intimately affected by the electoral decisions of our American neighbours," said Jason Clemens, Fraser Institute executive vice-president and co-editor of The U.S. Election 2012: Implications for Canada.

"Polls in Canada consistently show overwhelming support for President Obama, but his re-election combined with a divided Congress and the policies likely to be implemented over the next four years present a number of real, immediate risks to Canada-as well as opportunities."

Comprising 10 essays from preeminent Canadian and American scholars, the report examines critical economic issues that underpin the Canada-U.S. relationship. Essays of note include:

"Canada's Challenges in the Face of U.S. Monetary Policy" by Jerry Jordan (Former President, Federal Reserve Bank of Cleveland):

As the United States, Europe, and Japan become more tolerant of inflation, their currencies will likely depreciate while the currencies of smaller, open economies like Canada will climb. Persistent appreciation of the Canadian dollar against the U.S. dollar will mean increasing competitive pressures on both Canadian industries and firms that seek to export, and on Canadian companies that must compete with foreign imports.

"Such currency challenges often lead to worsening policy responses such as trade protectionism," Jordan said.

"The Effect of U.S. Financial Market Regulation on Canada" by Moin Yahya (University of Alberta):

The re-election of President Obama means the full implementation of what is popularly referred to as the Dodd-Frank Act, which imposes new regulations on the financial services sector in the U.S. Yahya argues that the impact of Dodd-Frank and its accompanying regulations on the Canadian financial system is highly uncertain because specific provisions concerning foreign banks have yet to be developed. Other rules may apply inadvertently to Canadian companies doing business in the United States, such as brokerage firms that trade American stocks for clients in the U.S. or Canada.

"Clearly, there will be adverse effects on the Canadian banking and financial services sector from the regulations imposed by U.S. legislators," Yahya said.

"U.S. Energy and Environment Policymaking in Obama's Second Term" by Chris Horner (Competitive Enterprise Institute):

The Obama administration will likely introduce a host of environmental and safety regulations aimed principally at the energy sector, and more specifically the oil and gas sector, that will adversely affect production.

"The risk for Canada if it copies American energy regulations is that it will inadvertently impede the development of its own opportunities," Horner said.

"Obamacare and Canadian Health Care" by Steven Globerman (Western Washington University):

Obama's re-election ensures the enactment of the Patient Protection and Affordable Care Act (ACA). While specific implementation details remain to be worked out, Globerman argues that the ACA will likely reduce rates of technological change in the U.S. health care sector which, in turn, will reduce the availability of new medical technology to Canada. He also warns that the emergence of rationing and waiting times in the U.S. might also increase the costs of Canadian health care by constraining provincial governments from using spare capacity in the U.S. as a buffer against "excessive" waiting times in Canada.

"Rather than relying upon sending Canadian patients to the United States to deal with excessive wait times, provincial governments will presumably need to add domestic capacity or else increase waiting times for Canadians to receive timely medical treatment," Globerman said.

"This will oblige Canadian governments to spend more on health care."

"How Canada Could Take Advantage of Changes to U.S. Tax Policy" by David R. Henderson (Naval Postgraduate School and the Hoover Institution):

Henderson outlines the competitive disadvantage Canadian income earners face relative to their American counterparts with respect to income taxes. Canadians face higher income tax rates that kick in at lower levels of income compared to Americans; this presents an opportunity for Canada over the next decade or so: balance budgets then reduce personal income taxes.

"Income taxes are the largest source of revenues for governments and the single largest tax for the top 50 per cent of income earners. Continued deficits will prevent the U.S. from implementing sustainable tax relief over the next decade," Henderson said.

"This provides Canada with an opportunity to gain some level of comparability if not a competitive advantage vis-a-vis the U.S. with respect to income taxes."

Follow the Fraser Institute on Twitter - Like us on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org.

Contacts:
The Fraser Institute
Jason Clemens
Executive Vice-President
(604) 714-4591
[email protected]

The Fraser Institute
Alexander Moens
Professor of Political Science, Simon Fraser University
Senior Fellow, Fraser Institute
(778) 782-4361
[email protected]

The Fraser Institute
Dean Pelkey
Director of Communications
(604) 714-4582
[email protected]
www.fraserinstitute.org

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Vormetric on Wednesday announced the results of its 2015 Insider Threat Report (ITR), conducted online on their behalf by Harris Poll and in conjunction with analyst firm Ovum in fall 2014 among 818 IT decision makers in various countries, including 408 in the United States. The report details striking findings around how U.S. and international enterprises perceive security threats, the types of employees considered most dangerous, environments at the greatest risk for data loss and the steps or...
CodeFutures has announced Dan Lynn as its new CEO. Lynn assumes the role from Founder Cory Isaacson, who has joined RMS and will now serve as chairman of CodeFutures. Lynn brings more than 14 years of advanced technology and business success experience, and will help CodeFutures build on its industry leadership around its Agile Big Data initiatives. His technical expertise will be invaluable in advancing CodeFutures’ AgilData platform and new processes for streamlining and gaining value from gro...
In this scenarios approach Joe Thykattil, Technology Architect & Sales at TimeWarner / Navisite, presented examples that will allow business-savvy professionals to make informed decisions based on a sound business model. This model covered the technology options in detail as well as a financial analysis. The TCO (Total Cost of Ownership) and ROI (Return on Investment) demonstrated how to start, develop and formulate a business case that will allow both small and large scale projects to achieve...
IBM has announced a new strategic technology services agreement with Anthem, Inc., a health benefits company in the U.S. IBM has been selected to provide operational services for Anthem's mainframe and data center server and storage infrastructure for the next five years. Among the benefits of the relationship, Anthem has the ability to leverage IBM Cloud solutions that will help increase the ease, availability and speed of adding infrastructure to support new business requirements.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and ex...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
“The age of the Internet of Things is upon us,” stated Thomas Svensson, senior vice-president and general manager EMEA, ThingWorx, “and working with forward-thinking companies, such as Elisa, enables us to deploy our leading technology so that customers can profit from complete, end-to-end solutions.” ThingWorx, a PTC® (Nasdaq: PTC) business and Internet of Things (IoT) platform provider, announced on Monday that Elisa, Finnish provider of mobile and fixed broadband subscriptions, will deploy ...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications U...
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that ...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, de...