Once again, Jack Layton (and NDP) are clueless on economy!

In tonight’s English debate, Jack Layton said something that really showed his lack of economic understanding. And it goes something like this, “I can’t think of anything you make with wood you couldn’t make here.” on the issue of job loss.

Ask any economist, he or she will tell you that just because we can make furnitures doesn’t mean that we should make furnitures. One country’s specialization in international trade is based on comparative advantage. In other words, we do it not just because we can, but because we can do it better (and in today’s economy, that usually means cheaper) than others. This is what will attract investment. This is what will help us compete in the world. Look at what happen to our automotive industry, an industry that we totally can do it, but we can’t because we don’t have comparative advantage anymore.

Jack Layton and the NDPs are clueless on the economy. They don’t understand economics. Even the idea of them being the official opposition sends a chill down my back!