As a guy who leans slightly on the right side of center politically, the recent events in our federal political system puzzle me. Yes, I understand we are in some tougher times and the government feels obligated to do something. "Stimulus package" became the buzzword of the day from our friends to the South and the Liberals and NDP got a little case of the me toos.
I still haven't figured out what we need a stimulus package for. Our banking system is the strongest in the world, and although some of banks struggled in 2008 that followed years upon years of record profits. Our banks having an off couple years is no reason to spend a bunch of taxpayer money. You may also say that Ontario is struggling, we need to help them out. Ontario has been a HAVE province for decades and along with Alberta have been the consistent economic engine of this country since the early 1990s. We have a commodity bubble which caused a dollar bubble and Ontario's export economy suffers. Both bubbles have now popped, so Ontario should start to recover on its own. However, with an economy tied to the United States more then any other province, no amount of "Stimulus" money is going to convince the Americans to buy more of our manufactured goods. Why? Because Americans aren't buying anything at the moment. Ontario will continue to have a tough time while the Americans do. $30 Billion won't change that.
So Ontario is a have not for a couple years and we need to deficit spend to prop them up? I would be screaming if I was The Maritimes. Nova Scotia and Newfoundland are finally starting to come out long periods of "Have-not" status and they did it on their own. Ontario has a setback and our politicians bend over backwards. Not surprising, as 40% of our population doesn't live in The Maritimes, but it still bugs me. Oh yeah, Ontario gives the Libs and NDP's most of their seats right now.
What else is getting help? Forestry is one. An industry that is in heavy need of consolidation in Canada and was struggling even when the economy was firing on all cylinders. Why don't we let the industry fix itself? We don't need 45 pulp and paper mills in this country, and we don't need to be deficit spending to keep them.
Last, do we not learn our lessons? Trying to spend out of a recession has been proven by economists and not effective as the effects of the cash infusion takes time to multiply through the economy. When it starts working, the country is typically pulling out of the recession on its own so all we are left with is a big bill.
I'm pretty happy with rant. And it is kinda therapeutic.
Cheers.
Subscribe to:
Post Comments (Atom)
good stuff. My hope is that not much of this money makes it out the door, and therefore doesn't get spent. I don't have a major problem with a minor deficit to bring Ontario out of the hole a bit, but $34 million is way too much! Clearly the coalition forced the cons into this mess.
ReplyDeleteYou have that right Seany. They drafted that letter in the fall that started this whole coalition boondoggle. This wasn't a budget document. The issue came down to party financing, but they needed to use the absence of a stimulus to be the issue of choice.
ReplyDeleteCanadians would not have accepted a new government on some technicality of party financing from the public coffers. Because of that, now we have to go into deficit.
Good ol "I deserve stuff simply because I exist".
ReplyDeleteOntario can bite me.
There's the Wally I know.
ReplyDeleteUnfortunately it's the way it's been for decades. Ontario and Quebec make noise and our elected officials listen. Manitoba has trouble. 14 seats? Ha! Maritimes - 36 seats total? Go pound sand.
Ontario sputters for a year or two? Free hookers and blow for all!