I like to follow the economic situations in the most liberal Canadian provinces to see how bad things can get when liberals are in charge. This article is by Joe Oliver, who I have mentioned before on this blog.
Here’s the article from the Financial Post:
The numbers tell the story. Ontario is the largest sub-national debtor in the entire world, just one alarming distinction. Its debt is more than twice that of California, a state with three times the population and one that has its own severe fiscal problems. Its debt is $294 billion, or over $21,000 per capita. Net debt to GDP is up 48 per cent in the past 10 years to almost 40 per cent, second only to Quebec. Last year’s interest obligations totalled $11.4 billion, about the same as the cost of community and social services. I doubt many Ontarians realize how much they are paying just in interest on the provincial debt. It averages $840 per person every year and rising. Not surprisingly, Standard and Poor’s downgraded Ontario’s bond credit from AA- to A+, citing a very high debt burden and very weak budgetary performance
The energy sector is nationalized in Ontario – there is no free market competition, it’s all government-run. Consumers have one choice when they want to purchase electricity – the provincial government. How well has nationalizing the energy sector (“Ontario Hydro”) worked out?
Some of its biggest problems are self-inflicted. Recently, we received a stunning revelation from Bonnie Lysyk, the province’s Auditor-General. In the past eight years, electricity cost $37 billion above market price. Even more staggering, it will pay a further $132 billion above market by 2032. The by-now infamous Green Energy Act guaranteed the price for wind and solar, so that they cost double and 3.5 times the U.S. market price respectively. As a result, energy costs have skyrocketed by 70 per cent, a regressive tax that hurts lower income earners disproportionately and depresses personal consumption. Higher energy costs also render businesses less competitive, which discourages job-creating capital investment.
Surprise! Green energy doesn’t lower electricity bills. But that hasn’t stopped the Liberal government from jumping into it with both feet.
There is no respect for the taxpayer in Ontario… every dollar earned there is seen by the ruling elite as more fuel for her vote-buying schemes. They want to spend their way to prosperity, as if spending money in the right way will cause economic growth. Well, here’s the truth: the government can never cause the people who start businesses and create value to produce more by taking more from them. The more the government takes from job creators, the more job creators scale back their productivity.
We should learn from the failure of socialism in other countries so that we don’t repeat their mistakes here.
- Architect of Kathleen Wynne’s Ontario Liberal Party sex ed curriculum sentenced for child porn
- Left uses stories and peer-pressure to indoctrinate children to support same-sex marriage
- Will gay activists threaten this little girl for covering her eyes at a gay pride parade?
- Ontario Law Society bans graduates of Christian university from practicing law
- Ontario education minister wants to stop Catholic schools from teaching pro-life view
- Even in Canada, green energy socialism closes businesses and kills jobs
- Should this ad opposing gay activism in Ontario schools be censored?
- Ontario government gives IKEA $685,000 per year in solar power subsidies
- Ontario man arrested for defending his home with a firearm
- Liberal government in Ontario to introduce more explicit sex education in schools
- Mandatory curriculum in Ontario schools promotes homosexuality
- Ontario deficit to hit $25 billion as tax revenues plunge
- Ontario Human Rights Tribunal says that in vitro fertilization is a right