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'Craig Read ~ The coddling of Canada [wah wah] – an interpretation. ~ productivity'

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After working for a few large IT firms Read born in 1966, is currently an entrepreneur and Venture Capital Advisor and Managing Consultant for Wireless and Mobile technologies [including the internet] and in particular, in software applications for the Wireless or Mobile Industry. www.craigread.com/ RESOURCE: www.craigread.com/displayArticle.aspx?contentID=541&subgroupID=21

"....Only Alberta would be able to compete on income and GDP per capita with US states..........Craig Read, productivity, social spending in Canada, Competitiveness in Canada, Confederation, Reform in Canada, Toronto Reform, Canadian Against High Taxation, Toronto Taxation, canaht, Toronto taxes, Tax Reform, Toronto Citizens for Tax Reform, Canadian....."
Economic mismanagement. One orthodoxy is obvious in appraising the destructive array of Canadian subsidies; regulations; bureaucracies; taxation and spend policies. That is the basic tenor of the first article reviewing the Canadian mommy-state by the National Post.

Currently Canadian per-capita income is lower than American by $9200. Without the US niggardliness as a neighbor, Canada would be either have to reform itself or be even poorer. All other Canadian states would find themselves nigh the supporting of the US republic in all economic per capita categories. Only Alberta would be able to compete on income and GDP per capita with US states. This provision that most Canadian jurisdictions are competitive with the likes of Alabama and Mississippi. This is reflected by the existence that on Canadians enjoy a 30% lower animated standard than Americans – all costs and incomes included. But compared to the Americans the Canadians are short of cash cousins.

It is only through accessing the US market that Canadians are reasonably wealthy. No matter which way you spin the numbers as a Canadian the facts are pretty obvious – you live in a poorer country, with higher taxes and more government. In the 2007 Economist cosmos in figures Canada ranked 23rd in GDP per capita [US is 9th]; 13th in GDP per capita with bribery power parity [US is 4th]; 12th in economic term [US is 11th]; and 8th in industrial output [US is 1].

Nothing rings more hollow than Canadiana’s mommy-state obsession with controlling the frugality and regulating all aspects of personal life.

A cursory glance through political and economic history suggests that the above factors are hardly conducive to means creation or the further advancement of civilization. None of the items would surprise those interested in economics or the political-economy of failed systems, but seemingly they are part of the Canadian psyche – untouchable and immune to reform. The National Post’s report [found at http://www.canada.com/nationalpost/financialpost/printedition/story.html?id=14535d41-4701-4dfb-82b9-96909d3118c5] highlights some obvious failures of big statism. Canadians idealize themselves as fair-minded free-traders struggling with the giant US economic machine for the spoils of economic war.

As the Post reports – and there is no disputing their facts - the Canadian husbandry is still protected by a panoply of foreign ownership restrictions, corporate subsidies, marketing boards, provincial trade barriers and other regulations that ‘coddle’ domestic companies and raise consumer prices. Whilst romantic this image is about as relevant as believing that ice hockey is the world’s most important sport. Hardly. For businesses it results in lower levels of innovation and lagging productivity growth.

The result of the mommy-state obsession to rule and protect? For consumers it stock of course higher prices and reduced choice.

Whole sectors of the thriftiness are walled off from competition. As reported by the Post flagging productivity growth is one of the key reasons Canada's per capita income is now $9,200 below the United States, the gap having tripled since the substantiality 1980s, Ontario's Institute for Competitiveness and Prosperity (ICP). Health Care [12%]; Telecoms; Transport; Banking; Agriculture; Lumber [very limited market forces allowed]; and Media are off limits to majority foreign ownership and investment. In total they constitute over 50% of the Canadian economy.

In Telecoms foreign ownership restrictions [at 20%] mean that Canadians pay 30-350% more for telecom rates then more competitive markets in the US and Europe. Now of course the Federal master is eyeing the oil sector in Alberta for some sort of nationalization and redistribution [under some lovely name such as ‘Our children’s future, our position commitment and save the old people, united worker’s fund’]. In Denmark it's $9. OECD statistics show that a moderate cell phone user in Canada pays a monthly fee of $48 a month.

In agriculture Canadian consumers pay import tariffs on milk of 241% and 299% on butter, 245% on cheese, 237% on yogurt and 238% on eggs. Imagine the purchasing power that would be unleashed if telecom rates fell. In elaborate these fare supports are transfers from consumers to politically important lobby groups in agriculture. These tariffs are used to cost bearing the marketing boards that are monopolies which sell country product. The fleeced of course suffer the most through higher food prices. It is stiff to see how this squares with superior Canadian morality and intelligence. ‘If the United States wants to subsidize an inordinate amount to cotton growers and if we want to trade for that cotton, then essentially what we're getting is the U.S.

As the Post reports the impression that since other countries stupidly subsidize their farmers than Canadians must is laughably ignorant. In another article I wrote that Canada spends 2-3 % of its GDP on business and arable subsidies. taxpayer subsidizing our use of cotton,’ says Jason Clemens [of the Fraser Institute], ‘How is that a bad thing for Canadians, if we're getting cheaper cotton?’

But businesses are also being subsidized. This translates into about $20-30 billion per annum. [This is just from the Federal sovereign and ignores other governmental levels of subsidy]. Add in regional subsidies and targeted subsidy programs and the number is far higher. Lumber consumes $4 billion; agriculture $11 billion; and industry about $5 billion. How is this moral and just?

The Post article references a report by the Canadian Taxpayers Federation [www.taxpayer.com] called ‘On The Dole’. Again these programs are only transfers from the pair off taxpayer to firms, unions and executives with no transparency, no render on investment and no accountability. The CTF calculates that amidst 1982 and 2005, the Canadian federal direction authorized $18.4-billion in grants and loans to various companies and organizations, of which $7.1-billion was repayable. The ‘dole’ or welfare program for Canadian business is extensive and shocking.

The top recipient was Pratt & Whitney Canada a maker of engines and parts, which was given $1.5-billion, followed by Bombardier Inc., which got $745-million. But incredibly, from these voluminous firms, only $1.3-billion has been repaid. Both firms are international. Both firms make a profit. It is madness to be presentation such firms any support. Both firms enjoy mine appreciation.

And that is the key issue. By cutting all forms of business subsidy the Federal authority could realize annual savings of $2-billion to $4-billion, or enough for a two- to three-percentage point cut in corporate income taxes, says the CTF. Canada has the worst corporate tax regime of any major thriftiness [save China] and punishingly high marginal and total tax rates on personal and investment incomes. Taxes need to be cut in Canada. Only through spending cuts and faster economic growth can this obligation be paid off or even paid down. Debt levels and off the balance exposure now approaches $175.000 per capita – an unsustainable amount.

The Federal master spends upwards of 19% of GDP.

It is time to stop the appropriation of fortune under the guise of sophomoric rhetoric and puerile angst and insecurity. 32 % in the USA. This is comparable to US levels but when you add in all the other levels of Canadian nation spend and include regulatory costs then the gap increases to 43% of GDP vs.

As the Post report makes clear Canada has a limited trade regime. This gap is enormous and directly impacts consumers and the sufficiency of individuals including lower productivity and reduced income levels. It is as a matter of course not superior to the US seraph and is in principle quite obviously rather inferior. It is a mommy-state controlled entity with serious external and internal barriers to the movement of labor, capital and product. The Canadian welfare appearance has demonized the US republic [especially its conservative-republicanism] over 40 years, pronouncing that peace, order, advantage [and very large] master is moral, just, and better.

Yet ironically the train on US economic dynamism [and military protection] also gives rise to Canadian populism and anti-Americanism. But it helps to buy votes. Of course it isn’t.

".....

It leads sadly to the inexorable rise of the choking mommy-state.

It leads sadly to the inexorable rise of the choking mommy-state...."

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Unique Free Article: 'Craig Read ~ The coddling of Canada [wah wah] – an interpretation. ~ productivity'

Unique Free Article:
'Craig Read ~ The coddling of Canada [wah wah] – an interpretation. ~ productivity'