Posted: Apr 07, 2012 3:41 pm
Landrew wrote:Timeline 2025: Canadian banks already have a good foothold in the US economy. It's only a matter of time before they gain dominant control and then powerful influence in government. While some US citizens will be alarmed, many more will be mildly accepting of the breath of fresh air which promises to sweep away some of the stale stench of corruption and economic decay.
My bold. It pretty much sums up the current Conservative government. Most of the Cabinet including Flaherty are ex-Provincial conservatives from Ontario who did a great job screwing local economies by lowering provincial taxes though downloading of services to municipalities. Essentially, the Federal conservatives are still doing that by cutting social services communities depend upon. Just heard today that a program providing internet access to remote and poor communities has been cut. Their contribution to the $8,000,000 program -- just $650,000. The cost of a single high priced consultant working on a small study.
WSJ's article does little to analyze the conditions under which the current government has "earned" its favourable economic status as Shrunk notes above. This goes back to the Liberal government under Jean Chretien, and more particularly, his finance Minister Paul Martin who made some prudent decisions that the Conservatives have politically benefited from in the last decade and subsequently squandering.
Namely, the Liberals refused to let Canadian banks merge together in the 1990s and allow increased American investment. The banks complained that they couldn't increase their wealth --and as the can always goes, the wealth of average Canadians -- without doing so. The Liberals dug in their heels, with the banks, seriously complaining about "Canadians’ inability to understand the bankers’ point of view" -- cry me an effing river Cleghorn.
The Conservatives under Harper are squandering everything that makes Canada valuable. The first nail in the coffin was cutting the GST by 2% (a canadian VAT) that has contributed to the current fiscal shortfall that we now see getting slashed from critical social programs. That's a two dollar (!!) savings on a hundred dollar purchase that has in fact lead to cuts to social programs like the internet connectivity program mentioned above. We have a fiscal structural problem in this country and the supply side Cons are refusing to do anything significant about it.
If Canadians allow this government to reign (they are, after all treating it like their kingdom) we will find us in as dire a situation in the coming years as the Americans find themselves now.