Freedom to Think 101
- Not impaired by grandiose federal party policies designed to re-elect Liberals and Conservatives
- Not impaired by "con"federation and the thinking of New Liberalism and Joey
- Not impaired by low self esteem
- Not impaired by employment with any of the federal or provincial political parties
The truth is and we all know it - that politicians consider their main job is to get re-elected.
On that basis - all significant federal parties (those that stand a chance for a majority) - will create policy favouring Quebec and Ontario.
The truth is Stephen Harper promised in writing and verbally to remove non-renewable resource revenues from the equalization formula.
The truth is - as an economist Harper has supported this concept for many years.
The truth is - Harper knew exactly what he was promising when he promised same.
The truth is - Harper knows it's the best chance Saskatchewan and Newfoundland and Labrador have to become a non-recipient province for the long-term.
The truth is - Harper buckled and gave up all of his beliefs to get a majority.
For all Canadians out there - this unfortunately is short term thinking and will - in the end - be harmful to the country.
The concept is simple - non-renewable resources are just that and therefore will not be available for future generations. These resource revenues must be used to build infrastructure - reduce debt - establish a heritage fund of some sort - and generally make other opportunities available so that the economy can be diversified and the fiscal position be sustainable.
That is what happened in Alberta - the province not crippled by reduced federal funds when developing the tar sands.
Renewable resources - according to Harper's own thinking and I agree will be available (if managed properly) to benefit future generations directly. Therefore the removal of these resource revenues from the formula is not necessary.
Fiscal Capacity can be defined many different ways probably as many as there are Chartered Accountants - but is defined in a specific way under the current equalization formula. Any reasonably minded person can see - on review - of the Federal Provincial Fiscal Arrangements Act that the definition is quite artificial and does nothing to develop sustainable economies.
Newfoundland and Labrador - per capita - may exceed per capita the fiscal capacity of Ontario over the next few years. What does that really mean? It means that oil revenues will artificially raise our per-capita fiscal capacity for a few short years. It will not count our debt per-capita - unemployment levels - provincial taxation rates - minimum wage - outmigration - birth and death rates etc...
Therefore the artificial flawed equation - that includes non-renewable resource revenues - will cause our continued economic dependence on Canada and the continued need for equalization. Whereas if the revenues were removed and used to reduce debt - build infrastructure - attract secondary processing facilities - lower provincial income and sales taxes - it is possible that a sustainable independent economy can be developed netting Canada a long term non-recipient contributor to the equalization program.
We must remember that New Brunswick - Nova Scotia - PEI - Manitoba - and yes even Quebec are anticipating long-term need for equalization so the more net contributors the better for the country.
This should be debated in Canada for the good of the federation - else the federation will fail.
There is no excuse for a Newfoundlander and Labradorian arguing against this position and to do so is either because of pure ignorance - pure politics - or pure stupidity - or personal financial remuneration.
In the case of Loyola - Norm - and Fabian - a combination in some form of all of the above.
In the case of others - let them answer it.
Imagine if you can Quebec being on equalization while Newfoundland and Labrador is not. Ontario should be looking to that neighbour to complain about fiscal imbalance - but to do so would break up the political power base that is Quebec and Ontario.
Showing posts with label fiscal capacity. Show all posts
Showing posts with label fiscal capacity. Show all posts
Thursday, July 12, 2007
Wednesday, July 11, 2007
Messiahs and the Regimented Mind
Michael Temelini on Radio Noon
CBC Radio Noon today featured Mike Temelini as the guest for Cross Talk - the subject politics. Anything went.
During the course of the discussion a caller suggested that Newfoundland and Labrador has a history of seeking political messiahs. Danny Williams, Brian Tobin, and Joey Smallwood were used as examples. Temelini took exception to that and suggested that instead of a messiah we were simply rallying behind a leader - similar to voters in Quebec.
Generally I found Temelini fairly comfortable with Newfoundland and Labrador affairs and as a native Ontarian fairly sensitive to our unique circumstances.
Our Political Messiahs
On the issue of Messiahs I found Temelini a little naive - in that our culture is that of regimented thinking. Not questioning priests - doctors - school principals etc. is the norm or has been. We generally recognize an authority usually somebody with a professional designation or a millionaire and think "they know what they are doing".
This is diminishing with the age of technology and educated youth. We are challenging authority and asking questions.
Unfortunately since Confederation and Joey we have seen Ottawa as a Messiah and an authority - not to question - but to accept the wisdom delivered. We have started questioning this and now we are honing in on the problems with this federation and the destruction to our culture - economy - rural living - resources - and our self esteem.
The Regimented Mind
Today on the same program one caller fell into that trap and started to defend Ottawa and suggest it is unfair for us to ask for more. Particularly the caller was referring to equalization and fiscal capacity. The caller suggested the reason the provincial Liberals did not seek similar changes in their long duration in power was that we should not expect to get more than what the formula suggests.
First this is to accept that the equation reasonably assesses fiscal capacity - second it is to regiment thoughts and fall in line versus being creative and maximizing our benefits. The latter is what Quebec has been so successful in doing. Then there is the whole idea of accepting it even if it is fair - why not fight for more - the others will.
When one looks critically at the economies of Alberta and Ontario and suggests that temporary oil revenues places Newfoundland and Labrador ahead of these two provinces within a couple of years is in denial. The selections of one formula hardly measures a true fiscal position and worse if applied will place us forever in a recipient position. The fact that any of our people accept it let alone defend it tells me that Ottawa remains a Messiah to a regimented mind and not the opinion of an independent thinker.
An examination of Fiscal Capacity and Maximising the Equalization Formula in an upcoming post.
CBC Radio Noon today featured Mike Temelini as the guest for Cross Talk - the subject politics. Anything went.
During the course of the discussion a caller suggested that Newfoundland and Labrador has a history of seeking political messiahs. Danny Williams, Brian Tobin, and Joey Smallwood were used as examples. Temelini took exception to that and suggested that instead of a messiah we were simply rallying behind a leader - similar to voters in Quebec.
Generally I found Temelini fairly comfortable with Newfoundland and Labrador affairs and as a native Ontarian fairly sensitive to our unique circumstances.
Our Political Messiahs
On the issue of Messiahs I found Temelini a little naive - in that our culture is that of regimented thinking. Not questioning priests - doctors - school principals etc. is the norm or has been. We generally recognize an authority usually somebody with a professional designation or a millionaire and think "they know what they are doing".
This is diminishing with the age of technology and educated youth. We are challenging authority and asking questions.
Unfortunately since Confederation and Joey we have seen Ottawa as a Messiah and an authority - not to question - but to accept the wisdom delivered. We have started questioning this and now we are honing in on the problems with this federation and the destruction to our culture - economy - rural living - resources - and our self esteem.
The Regimented Mind
Today on the same program one caller fell into that trap and started to defend Ottawa and suggest it is unfair for us to ask for more. Particularly the caller was referring to equalization and fiscal capacity. The caller suggested the reason the provincial Liberals did not seek similar changes in their long duration in power was that we should not expect to get more than what the formula suggests.
First this is to accept that the equation reasonably assesses fiscal capacity - second it is to regiment thoughts and fall in line versus being creative and maximizing our benefits. The latter is what Quebec has been so successful in doing. Then there is the whole idea of accepting it even if it is fair - why not fight for more - the others will.
When one looks critically at the economies of Alberta and Ontario and suggests that temporary oil revenues places Newfoundland and Labrador ahead of these two provinces within a couple of years is in denial. The selections of one formula hardly measures a true fiscal position and worse if applied will place us forever in a recipient position. The fact that any of our people accept it let alone defend it tells me that Ottawa remains a Messiah to a regimented mind and not the opinion of an independent thinker.
An examination of Fiscal Capacity and Maximising the Equalization Formula in an upcoming post.
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