There Will Never Be A Better Time To Break Government Monopolies

This story has the potential to either be a real winner for economic freedom or another nail in the coffin for entrepreneurship and innovation in Ontario.

Finally, we have a government that is at least willing to look at selling off crown corporations like Hydro (read: poorly run debt ridden sinkhole), the LCBO (read unnecessary monopoly that competes with private business), and the OLG (scandal ridden, monopoly that sustains the massive administrative money sucking machine that runs so-called charities and allows government to spend recklessly on any and every petty vote buying project they can think of).

I don't really care what the reasons are, but if you care at all about making Ontario a better place, then I urge you to support this initiative. I've written and podcasted about the unfairness of the LCBO before. The same applies to the Hydro and the OLG.

But this could be bad, too. For example, what good is selling the LCBO if you still have to buy from the LCBO? If the LCBO is sold off but still maintains its monopoly status, where's the benefit to the people? All we would be doing is providing profits for a privately owned monopoly instead of a publicly owned one. If that happens, then this is a bad idea.

Economic freedom, entrepreneurship, competition. These should be the goals of selling off crown corps. But if we sell it merely to cash in now on future profit and hand over the mismanagement to someone else instead of truly 'renovating', then we'll be in worse shape tomorrow.

Call, write, beg, plead. Make sure your MPP knows exactly what is best for Ontario. If we leave it up to them to decide, then we're in trouble, and no better off than we are now.

Tim Hudak: Champion of Ontario

Ontario PC Leader Tim Hudak recaps fall session and talks about the 3 key priorities the party focused on:

1. Rebuilding the economy and spurring private sector jobs
2. Holding the McGuinty government accountable
3. Fighting for seniors and families by doing what they could to prevent HST implementation

Other highlights:

1 year anniversary of Ontario's "Have-Not" status
$25B Budget Deficit, $65B of new provincial debt

Looming Billion Dollar Boondoggle signaled by provincial auditor over Welfare Program (remember Jane Stewart?)

Here's the video:

Why is the Bloc supporting the HST?

I have to ask this question. Where is the motivation for the Bloc to support the HST?

Time after time they have made it clear that they vote according to the interests of Quebec, so what's in it for them to support it?

Do you think they would ever support a HST initiative in Quebec?

I can think of only one reason the Bloc would vote in favour of a HST in Ontario and B.C.; to protect their seats and avoid an election.

Is that in the interests of Quebec?

Hudak Fights for Ontario Families

Hi All,

Here is a great video showing the PCs of Ontario kicking some butt over the HST. Check it out:

Can We Have an Adult Conversation About Taxes? Sure, but...

An editorial entitled Can We Have an Adult Conversation About Taxes? was published today wherein the The Star attempted to blow a hole through one of the central tenets of modern economic theory: the idea that lower marginal tax rates result in higher government revenue.

There is a detailed explanation of this theory (known as the Laffer Curve) here.

You may also recall hearing about this theory in Economics 101. I'm sure its also mentioned in Economics for Dummies.

The Star column reads:

Then there's the right-wing's childish fantasy that if you lower tax rates, government revenue will actually increase. We can all pay less tax, and government will get more revenue.


Try that one on a 4-year-old. It defies logic. Here's the reality: Data from the OECD demonstrate that, since 1995, tax revenue in Canada has dropped from 36 per cent of GDP to 33 per cent of GDP. That may not sound like much, but it represents a loss of nearly $50 billion a year in public revenue. And we wonder why Canada plunged into a $50 billion deficit magically overnight.

Perhaps a reality check is in order. I know this may be difficult The Star, but for a goof, try it anyway.

1995 GDP: $788.04 Billion, resulting in $283.70 Billion tax revenue
2005 GDP: $1,368.73 Billion, resulting in $451.7 Billion tax revenue

source: IMF Financial Statistics, Canadian Economy Wiki.

Maybe the problem with the Star is they don't have any 4 year olds doing their math.

Landon a Party Pooper...

Poor Gordon Landon. The councillor for York Region was moonlighting as a CPC candidate for Markham-Unionville, but was audacious enough to hope that speaking his mind in public might result in making a difference for his constituents. It made a difference all right. He is no longer the candidate. Imagine having to 'ask permission' from the PMO to speak to the media!

Let this be a lesson to anyone thinking about entering politics. If you expect to get anywhere in federal or provincial politics you must tow the party line or be squashed.

It's a hard lesson, and it exposes an awful paradox of our democratic process. The idea that an individual aspires to public office for the purpose of representing the interests of his constituents is at odds with the reality that party bosses lay down the law and anyone foolish enough to speak on behalf of the people is quickly dispatched.

The fundamental question is do MPs represent the people, or the party? In most cases, I think its the latter.

I have long maintained my desire to serve the people in Ottawa (or at Queen's Park), but the reality is unavoidable: I would be forced to put the priorities of the party above the priorities of the people.

If it's true that Landon stepped aside voluntarily because he couldn't work within the 'confines of partisan politics' then I applaud him for being true to himself and not sacrificing his principles for ambition.

I had thought I was being politically astute when I called no election this fall. I had even patted myself on the back for correctly predicting that the Bloc would end up supporting the Conservatives.

But I was wrong. Here's the real reason there was no election this week, and why there won't be one for the foreseeable future.