United we stand: An equal relationship
How students can cash in on dollar parity
TOMMY BZURA
In the hours preceding lunch on the east coast, investors and regular Joes stood in awe, as for the first time since November 1976 (almost exactly 31 years ago), the U.S. greenback reached parity with our beloved Canadian dollar. Not since the time that The Ramones first rocked the stage and both Apple and Microsoft began their campaigns for global computer domination, has our beloved Canadian dollar stood toe to toe with the daunting American greenback.
But what does this mean for us, as students?
Canada will stand to lose some ground in the export and manufacturing industries. The major exporters will represent some of the biggest losers across Canada. Ontario, which is well known for its manufacturing sector, will experience an economic slowdown in the months to come, particularly if the loonie continues to gain momentum. Many of the products that are made in Ontario will simply be too expensive for price savvy American companies to continue purchasing, especially when cheaper alternatives can be bought from Europe or Latin America. Other major losers will include the province
Not since the time that the Ramones first rocked the stage and both Apple and Microsoft began their campaigns for global computer domination has our beloved Canadian dollar stood toe to toe with the daunting American greenback.
of Quebec. Over 620,000 people are employed either by the forestry or manufacturing sector in Quebec, and the climbing dollar could spell trouble for sales to Canada’s best trade partner. This economic consequence of the rising dollar may eventually even translate itself into layoffs in these industries.
Finally, tourism will suffer throughout the country. For years, our low currency has made Canada an attractive destination for the many weekend warriors from across the U.S.. Here in Manitoba, citizens from North Dakota and Minnesota would head on up and take advantage of the permanent 25 per cent off sale on a leisurely trip to one of the many malls or shops in Winnipeg. It would not be surprising if more layoffs for workers in these sectors were imminent.
So this begs the question; with so many losers, who is actually winning? And even more important, how can us students benefit? Well, just as with most things in life, in order to benefit one must already be doing fairly well for themselves. For those that are looking for a replacement to the thoughtful but very rusty car that has been passed down through the family, the U.S. has proven to be full of deals. Some of the most popular and most reliable vehicles that make up the majority of the parking lots around school can often be found in the United States for thousands of dollars cheaper, thousands that a student on a budget could put to good use. For example a car being sold in the U.S. for $18,000 could now run you around $18,000 Canadian with parity. Because some of these cars are made or assembled in the U.S. or Canada, bringing it over the border back into Canada is duty-free and a matter of simply paying taxes, a $206 RIV fee and a $100 air conditioner fee — a purchasing event that can easily be turned into a road trip adventure worthy of numerous Facebook.com photos.
However, for the more realistic and cash-strapped student, now a weekend trip down to the States has become affordable. For those that do not have the time or the means to go some exotic hot location during reading week, Minneapolis or Fargo can serve as the perfect getaway location to escape the books and enjoy a few days of carefree partying or, for those that are inclined, perhaps taking in a legendary Minnesota Vikings game.
All this is good, but the majority of it seems to be spelling doom for Canadian manufacturers. Few retailers who import goods from the United States will benefit from the cheaper prices they will be paying for goods. However, this mantra of paying less for top quality American goods can also be translated into Canada’s third national language, hockey. A 2884rising dollar can spell success for the cash-strapped Canadian teams we all love. Along with the psychological pleasure Canadians feel with parity, finally feeling a sense of equality with the United States, the one-to-one relationship with the U.S. greenback can finally give Canadian teams the competitive financial edge they have needed all along to compete with big market American hockey franchises. So John Ferguson Jr., if you read this, make sure you go on a shopping spree, for Canada’s sake. Let’s see the Leafs bring it home this year.
Tom Bzura is a fourth-year science student and an UMSU representative for St. Paul’s College at the U of M
