A North American Common Market and Common Currency

Abstract:
This blog entry is a little more speculative than most, with a longer-term time horizon. It looks further down the road. Sometime, not tomorrow, not even five or ten years from now, but eventually, there are circumstances under which it will be just about inevitable that Canada, the United States and Mexico will combine as one seamless market with a common currency. The set of conditions taking us in that direction are as follows.

Member Comments

05/04/2009 - posted by Razoir

I don’t think a common currency and open borders are the answer. It will just eventually create larger bloc that will outsource its labour to a cheaper bloc. It also does nothing for the citizens of Canada who will face considerable downward pressure on their earnings as they compete with cheap labour at home, presumably from Mexico. In the meantime, who will be providing a social safety net for these workers--Canadians?

And what are we supposed to do with our burgeoning popuation of cheap labourers from Mexico when we reach the end of the line and they demand wages comparable to ours? Send them home?

Watching the inane thrashings of the federal government south of the border, I have no confidence in a common currency. Our federal government is doing a much better job of protecting Canada’s currency and maintaining its value.

Free trade, yes. Open labour market, and common currency no.

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