Today’s reports of large declines in wholesale transactions, punctuate the growing turbulence in Canada’s economy. For Ontario, where most of the suffering continues to unfold, it is a confirmation of a growing crisis. All levels of government have in some way, contributed to the decline, but none have aspired to top spot like the McGuinty administration.
Recent emissions from the Ontario Liberals indicate that they are in a pile of defecation, and they know it. It will become increasingly difficult to avoid blame, so they are scapegoating the federal government at every opportunity. The headline says, “Manufacturing sector reeling”, and the content is a whiny lecture by McGuinty about what federal priorities should be, and how they should be addressed. Had this lecture come from someone sitting atop the most prosperous province in the land, it might be digestible. Coming from someone standing in s__t up to his ankles, it gags the reader.
Sources repeatedly highlight the loss of manufacturing jobs in Ontario - some 200,000 since 2002. At this point someone should tell McGuinty that his caucus has presided over the mismanagement of Ontario since almost that time, while the Conservatives have been at the country’s helm since only 2006. Who does he blame before that? A TD bank study projected another 250,000 loss in the next five years, while in the same newspaper, Dalton was dreaming out loud about the pressing necessity of changing the Lord’s prayer.
His lecture to prime minister Harper consisted of fatherly advice about the beauty of subsidies, and the sage revelation that “We need to get beyond tax cuts…” The implication being that Mc’Guinty’s gang knows how to pick the winner of a handout, and that this method is more useful than nuisance tax cuts. Well, nobody was too surprised that he felt this way. His administration got beyond tax cuts immediately, having gouged Ontario with the biggest tax increase in history, practically on the eve of his inauguration.
So the man who wants to ditch the Lord but fancies himself a great judge of winners, has been giving money away for five years now. Since that method is better than tax cuts, we should be living large by now, right? Wrong! Mr. McGuinty should read the CD Howe reports on Ontario’s uncompetitive business taxation, and should look at a little Irish economic history. What we really need is to get beyond his government’s economic incompetence. There is no evidence that it has a clue of where to effectively put the money.
We knew at the start of his reign that manufacturers were unanimously insisting on a speedy infrastructure solution to the choked Windsor-Detroit gateway. Five years later, nothing has been done in spite of Windsor’s two cabinet ministers. The litigious part looms on the horizon, and manufacturers have bailed out in droves.
We knew then that Ontario’s total business taxation put it near the bottom among industrial countries, as a place to do business. Since then we have had the health tax, and a halt on promised business tax reduction.
We knew that power generation in Ontario would remain iffy without major structural innovation. Nothing has changed, rates continue upward and lights continue to brown out.
What’s worse, the higher taxation, and uncertain border crossing have played nicely into the hands of US interests which wanted to repatriate industrial jobs. On top of this, the meteoric rise of our dollar has produced further incentive to leave. The icing on the cake, will be spread when auto manufacturers come with requests that the CAW match the decreased wages of US contracts.
This need not have been a perfect storm. The prompt building of a new bridge would be an immediate stimulus. The hacking of corporate taxes rather than lecturing the feds, is the only possible counter to our inflated currency. All other avenues are dead ends for the immediate future. (We cannot suppress our currency, and we cannot defy US auto contracts.) To do what is possible requires us to keep the Lord and ditch McGuinty.