Imagine if governments engaged in a massive spending binge over the last decade, with the benefits falling to just a small part of the population and then hiked taxes four times to pay for it. Now imagine if they argued, in some Orwellian twist of illogic, that such excess generosity was fully funded, affordable, and sustainable this after the multiple tax hikes demonstrated they were not.
government spending
August 23, 2013
2:00AM
In his 1946 essay, Politics and the English Language, George Orwell argued that, political speech and writing are largely the defence of the indefensible. Orwell's quip came to mind again recently after reading Bombardier's defence of taxpayer subsidies to business, this in response to my recent study on the matter.
July 27, 2013
2:00AM
Back in 1962 John F. Kennedy had been president of the United States for one year, four lads from Liverpool were about to hit it big in the music world, and a Saskatchewan lawyer, John Diefenbaker, was in his fifth year as Prime Minister of Canada.
In retrospect, 1962 was also notable for another reason: it was the start of a trail identifying corporate welfare recipients, many of whom have sought subsidies from the federal government ever since.
June 29, 2013
2:00AM
Canada is a superb creation and initial credit for that must, obviously, go to Canada's fathers of Confederation. How we came about is a fascinating tale of seemingly intractable regional disputes resolved, at least for a time, by new institutions and a new country.
June 22, 2013
2:00AM
Canadians who dont regularly track how governments spend money might be surprised to find how myths crop up about government expenditures. Exhibit A is a new report that claims Canada needs even more industrial policy, academic lingo for subsidies to business, and this as if governments had not already long practised such policy, and at a considerable cost to taxpayers.
May 31, 2013
2:00AM
Back in June 2009, the federal and Ontario governments decided to use massive amounts of taxpayer cash to rescue General Motors and Chrysler, two corporations deemed too big to fail. The cost to Canadians was US$13.7 billion: $10.8 billion to GM and $2.9 billion to Chrysler.
The taxpayer bailout was part of the court-supervised restructuring process for the two companies, egged on by the Obama administration. Behind the scenes, the White House made clear that any restructured versions of the companies might leave Canada if taxpayers in this country did not ante up.
May 16, 2013
2:00AM
The BC Liberals and particularly Premier Christy Clark deserve the praise theyre receiving for their surprise electoral victory. After all, the Liberals reversed a double-digit deficit in the polls and ended up securing a majority government. This moment of jubilation for the Liberals and their supporters will be short-lived however, as the reality of governing in difficult times takes hold. The litmus test for the success of this government, which they themselves established, is the success of the economy and in particular, jobs.
May 16, 2013
2:00AM
Over the course of the past several months, outgoing Bank of Canada Governor Mark Carney and Federal Finance Minister Jim Flaherty have repeatedly warned that Canadians are spending beyond their means and taking on too much debt.
A concern of the Bank of Canada...has been the pace of growth of household debt Carney recently noted. Minister Flaherty added, While interest rates are currently low by historical standards, eventually they will rise. Canadians should . understand this when taking on significant debt
May 11, 2013
2:00AM
If business leaders ever wonder why a chunk of the public disdain business and call for higher corporate taxes or sector-specific increases (higher royalty rates for energy and mining, higher stumpage fees in forestry) or just increased business taxation in general, heres a clue: too many companies are addicted to corporate welfare.
Crony capitalism is problematic all on its own. Addiction to it only reinforces the perception that businesses cant be bothered to compete on merit, in an open market, but prefer to plead for political favours and protection at taxpayers expense.