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Canada's Super-Sized Economy

Posted: 09/07/11 12:34 PM ET

Tim Hortons is supersizing their coffee. And that's all you need to know about the Canadian economy.

As was widely reported last week, in two cities, Tim Hortons is upsizing their cups, leaving people with more coffee and bigger prices. A medium is the new small. And there will be a larger large, with 24 ounces of coffee. (Just in case this has been all too confusing, Tim Hortons has produced a helpful poster for customers, which you can find reproduced here.) It's a test run, but clearly the chain is eyeing a roll out across the country.

It summarizes well our economic situation. While America deals with another bad jobs report and the increasing likelihood of a double-dip recession, as Europeans fret Greek banks, we face the potential of... bigger coffee cups. It speaks of prosperity at a time of unease -- a major coffee chain attempting to increase sales when the chains in other countries are laying off workers.

These are good times in Canada. Our banks are sounds; the dollar trades over parity; the housing market remains robust; and the stock market, while bruised, has not dropped like other markets.

The contrast with the United States is particularly pronounced. In recessions past, Canadians bled, while Americans emerged relatively unscathed. Think of the recessions of the early '80s and the early '90s. Today, it's the opposite. The United States is enduring an economic lull, the worst since the Depression; we seem to have bounced back, and boast the highest growth rates in the G7 for the first quarter of this year.

That's not quite to suggest that life here is perfect -- the last quarter was a dud in terms of economic growth. (Find a nice summary of the economy here.)

And there are, of course, storm clouds on the horizon. Our manufacturing is hot because of exports to the United States -- how long will Americans buy Canadian made cars if their economic woes continue? Commodities trade high -- how much longer before Asia catches the American flu?

But, for now, this is Canada's extra large coffee moment.

 
Tim Hortons is supersizing their coffee. And that's all you need to know about the Canadian economy. As was widely reported last week, in two cities, Tim Hortons is upsizing their cups, leaving peopl...
Tim Hortons is supersizing their coffee. And that's all you need to know about the Canadian economy. As was widely reported last week, in two cities, Tim Hortons is upsizing their cups, leaving peopl...
 
 
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04:01 PM on 09/07/2011
If we think that Canada is not going to be affected by the US, not to mention the worldwide crisis, we are in for a surprise! No country, large or small, can survive the crises we are experiencing in the world. Unlike times past, we now live in a very different reality, where we are absolutely connected and interconnected. To survive in this world, we have to think globally. Even attempting to consider the possibility that a crisis will not affect us, means that it will most certainly will. If the reality is that we are connected (and if you are still doubting it, perhaps you should watch this short documentary: http://vimeo.com/14196818), then we must start acting like it. And that means, treating others the same way we would want to be treated. This is the only formula for success in an interconnected and interdependent world. As for the coffee size...well...that is an entirely different topic altogether...
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01:24 PM on 09/07/2011
No country is an island entire of itself, every country is a piece of a continent, a part of the main. And therefore never send to know for whom the NYSE closing bell tolls; it tolls for Canada.