05 June 2009

"Our" Recovery Unaffected by Rising Loonie

Loonie's surge threatens our recovery, blares the headline, one of many similar headlines topping financial news reports today.

But here's the thing. "Our" recovery obviously doesn't include people whose households fall below the lowest tenth in income.

The higher dollar will, eventually, mean lower prices, once manufacturers and retailers have grudgingly unstuck their sticky prices.

Life at the bottom of the poverty well floats at much the same rate regardless of activities above. The poor haven't investments that can be hurt by the rising loonie, so our recovery will be unaffected, if not slightly improved.

Your recovery may be a different matter, however.

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