Gone were the dense forests of the East. Gone were the wide-open spaces of Saskatchewan and Alberta. We were in British Columbia – rolling downhill, following the gray-green river downstream, through boiling canyons and lazy flats…
Does any country have more bountiful natural resources than Canada?
Timber, food, cattle, minerals, water – Canadians have it all.
Too bad: When it comes to prosperity, there are few things as dangerous as inheriting money or having abundant natural resources.
Gagging on Oil
Rather than making or inventing things… or providing useful services… a resource-rich economy tends to sell itself – by the ton.
When commodities boom, the miners, farmers, and lumberjacks live high on the hog. But when they fall – the economy falls with them.
Canada’s economic growth was negative in the first quarter. The country is the world’s tenth largest exporter of crude oil. And oil is in its worst downturn in 30 years, according to Morgan Stanley.
The U.S. oil price has dipped below $50 a barrel. Along with it, the entire commodity complex – upon which much of the economy of Canada depends – could be dragged further down too.