Liberal Party has made Ontario’s economy a disastrous failure

Liberal Party has dominated Ontario since 2003
Liberal Party has dominated Ontario since 2003

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.

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One thought on “Liberal Party has made Ontario’s economy a disastrous failure”

  1. Government regulation and coercion in Ontario and Canada is just insane. Why work??? WE have communism. The government control wages and incomes AFTER the fact with taxation. The government takes 50% of everything. If you work hard then it is simply given to someone else by force.

    Fleecing the productive is a sure way to make the productive disappear or at least foster the parasitic mindset to steal, lie, coerce and destroy. Taxed on the money you earn, then taxed on savings, taxed on investments, taxed on tax.

    Forced redistribution of income is theft, and makes citizens into slaves and property of someone else’s agenda. WE have people with careers based on the size of and continued existence of poverty and state dependence. They don’t earn their way by voluntary contract and association — they coerce it by state coercion and force.

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