The nightmare known as the Italian debt crisis, which had been simmering on the back burner for a few years, has come back to life at a particularly inopportune time.
The greatest risk to the U.S. economic outlook is rapidly developing labour shortages. If firms can’t find the workers to run their operations, the economic expansion could grind to a halt.
Some observers have been quick to call for investigations and prosecutions of those mentioned in the Paradise Papers, a high-profile exposé of the financial dealings of the world’s wealthy.
Labour markets have been tightening sharply in the United States and Canada. The unemployment rate in the U.S. is well below 5 per cent, while in Canada the rate is quickly approaching 6 per cent. Generally, this development leads to rising inflation, as employers offer higher wages to attract new workers. Yet inflation in both countries remains below the 2 per cent target established by the central banks in both countries.
The celebration of Canada’s 150th birthday was a time for Canadians to reflect on how lucky we are to live in a wealthy country. There were certainly no guarantees way back in the 19th century that Canada would develop into a rich country.