How is the economy in the US? I just came back from a two week business trip to the US. Things seemed ok to me, however, everyone I spoke to said they know a lot of people who were looking for work but could not find any. What are your guys take on the situation in the US.

As for Canada, the real estate market which have been so hot for so long seems to be cooling. In my neighborhood where houses would be sold in a  week, I am now seeing houses up for three weeks and there are more for sale signs. The average price in this neighborhood for a detached home is around 700K and townhouse 550k – maybe the prices are too high and needs to realistically adjust.

Also, even though Canadians are working, many of them are working for the minimum wage of 10.25 an hr and are doing two jobs. Perhaps this is the new economy where people work longer for less returns.

As for the US I was told that because of Obama care companies are reducing people’s hours so that they would not be obligated to pay health insurance premiums – is this true or was that person just distorting the facts.

I cannot really say if the economy is good or bad because I have never been out of a good job, so I may be the wrong person to ask. However, what I can say is that cost of living has gone up a lot and I can easily see an annual increase in necessary spending, for myself, of about 8% per year for the last 5 yrs at least. I am referring to spending on property tax, housing, food, clothing, gas, heating and AC.

I do believe that there is a lot of hope for the US economy and in effect Canada as well. In North America we have one of the most important things required in manufacturing which is, in many cases, the most expensive part of production – energy. Because energy is so cheap in North America, I see manufacturing moving back to North America in time and the economy gradually improving over time.