Canada: Shock Therapy

Budget for a "bankrupt"

Canadians marked their country's 115th birthday last week with picnics, parades and a dazzling display of fireworks over Ottawa's Parliament Hill. But the celebration hardly reflected the times; Canada faces its worst economic slump since the 1930s. Unemployment stands at a post-Depression high of 10.2%, inflation is galloping along at 11.8%, and the prime rate is stuck at a crippling 18.25%. In an effort to check the growing sense of alarm, Finance Minister Allan MacEachen unveiled a new budget, his third in less than 18 months. But as Canadians studied his belt-tightening measures—and a projected...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!