Reaction to Canada's 'unique strain of Dutch Disease'

An article published yesterday on Canada's economy, the oilsands and "Dutch disease" garnered hundreds of comments, and a debate on the economic benefits of a resource-based economy ensued.

The article contrasted two competing view of the oilsands' effect on Canada's economy. One, from the sustainable energy think thank Pembina Institute, suggested that the effect is "a uniquely Canadian strain of the Dutch Disease."

The other, from the free market think thank Macdonald-Laurier Institute, says that any Dutch disease effect is "offset by the gains to the overall Canadian economy documented by these studies."

CBC Community member Chris.S.PEI said that a more neutral view might be needed.

"I'll think it is fair to look at both of these with a very critical eye and a grain of salt.

"Fortunately the reputable Resource and Energy Economics Journal has published the peer reviewed government funded study "Does the Canadian Economy Suffer from Dutch Disease?," which is far more neutral , reputable and scientific.

"It concluded we do in fact suffer from a 'mild case' with a high dollar being largely resource driven impact the mfg industry as a major factor (over a third of all loss).

"I think Mulcair is right to pursue this issue if he wants to govern for all of Canada instead of just specific regions."

• "Actually he is partially right and partially wrong. Mulcair only focuses on the negative contribution the oilsands are making to the economy. He doesn't take into account the Canada wide benefits. In fact he is more on the wrong side to not make a total outlook on this issue. If Mulcair wants to be Prime Minister he better get educated," said Perspection.
  
  
• "You obviously don't get the point of the article," replied timelesscentury. "To say that the oil sands is spreading the wealth may be true, but it is fake wealth as industries are becoming reliant on the oil sands for money. When you switch to a resource based economy, other economies like R&D, manufacturing, etc, all start to focus their efforts on that one resource because that's where the money and the funding are. When that resource leaves, there will not only be a collapse in Alberta, but a complete collapse of the economies in all of the provinces that were based on the oil economy."

Commenter John Sollows offered a historical perspective.

"One thing everyone has to remember is that a diverse economy is a stable one. We should NOT get too dependent on any single component. The "Dutch disease" comments ascribed to Mulcair and MacGuinty should be taken constructively.

"Back in the dust bowl days, Maritimers helped see the prairies through a very rough patch. That could happen again. So it makes eminent sense to assure healthy, sustainable economies throughout the country."

And Logics1 said that it's important to be realistic.

"To blame the problems of the eastern manufacturing sector on the success of the Alberta Oil industry is ridiculous. Germany has a strong dollar and high valued currency yet she has a very strong manufacturing industry. It is up to the manufacturing industry itself to solve its own problems; we live in a free market.

"Besides, all this talk is moot. Alberta is not going to slow down its biggest industry just because the eastern manufacturing industry can't make a buck. Not gonna happen."

Thank you, as always, for following our coverage. Please feel free to comment on or challenge any of these points and continue the conversation below.