When I was a kid, the Canadian dollar was worth 1.03 U.S. We knew that because I grew up a few hundred yards from a marina where rich Americans often moored their yachts in the summer, and the stores nearby always posted the rate.
By the time I finished high school, ours dollar was worth less than the American one, and it got worse by the late 1990s. In 2002, our dollar hit an alltime low of around 62 cents. Fox media types snickered at the "Canadian peso" suggesting that our social programs and medicare system were bankrupting the country.
There were more factors involved. For a while it seemed like every time a politician in Quebec sneezed, the dollar dropped.
Not everyone was unhappy. The town where I grew up has come to rely on a lower Canadian dollar to help make its exported paper products more attractive to foreign buyers. Tourism, which is huge in this province, also benefits from an exchange rate that helps attract foreign visitors.
Still, it wasn't fun when you had to go out of the country, and it was easy to grow tired of buying things like paperback books with price labels that would say 7.95 U.S., 11.95 in Canada.
When we went to Disneyland in the summer of 2004, our dollar was worth about 75 cents U.S., when I took kids to New York in December of 2005, it was up to around 86 cents.
Today I called Houston to book tickets for a touring production of Spamalot in Seattle in a few weeks. It was a good day to be buying something from south of the border; our dollar closed the day at par with the U.S. buck--well, within one tenth of a cent, anyway.
Had a good chat with the guy booking the tickets--we took 32 seats--after he asked me why the change in rates. I figure it's a combination of the mortgage default crisis in the U.S., the cost of the war in Iraq, the price of oil and other resource commodities, which we have a lot of, and the recent federal byelections in Quebec showing folks there aren't all that keen on leaving the country anytime soon.
Or maybe it's just all the cash from those same sex couples coming here to get married...
And file under annoying... my battery was toast when I tried to start my car to go home today. Fortunately after a jump start I was off to my brother in laws shop and one of his mechanics stuck around after quitting time to help me out.
4 comments:
I remember being in Toronto in the early 90's and just being enthralled with just how much I could buy with my American dollars! Then I realized that the price for gas was per liter, not per gallon, and realized that there were things that were just a bit pricey. US dollar is even weaker against the Euro, bad for those of us who would like to venture abroad and not use the youth hostel route. Good post title.
I have a stockpile of loonies. I'm good to go.
Life is busy right now. Being a new teacher allocates no extra time. Or time for blogging. Or time for ANYTHING. But... I'm still alive. And teaching.
Wow, I didn't even realize the Canadian dollar wasn't equal to ours before. I didn't do well in Microeconomics, I might add. I have always noticed that, though, on the back of books, that it's more in Canada, but b/c of that I always assumed that you guys must have more money than us here, haha. I think your reasons for why y'all have caught up with us are exactly right.
Oh, and yes, it's nice to have a brother-in-law who is a mechanic. Something is always wrong with my car! P.S. Nope, I was right, you are NEVER on AIM anymore! I usually get on around 6-8 (Central time) and never see you! Still have the same screen name?
Alas, BG-- 6-8 your time is 4-6 our time, when I'm probably either
a. still at work
b. driving home from work
c. eating supper
d. driving a child to or from somewhere
I'll have to check in more often, though.
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