Government Jobs Don’t Create Wealth, They Impose Costs

https://grantcoulson.files.wordpress.com/2014/04/incentiveseverywherepicturecorrect1.jpg?w=444&h=288     Do not think about, write about or deal with  human behavior without determining the effects of incentives.

     The eco-hysterics have fastened on the melting of part of Antarctic ice as yet one more manifestation of Global Warming. Since the Antarctic ice pack is the largest it’s been in 70 years, why is anyone surprised? Perhaps they could mount another expedition which again could prove the parlous condition of the Ice Pack by getting trapped in it. I always thought that once credibility is gone, no one tries to get it back. Hysteria, apparently, is never out of fashion and covers all sins.

     Below, we have one of the most astounding announcements I have ever seen in politics. Whether he wins the election, the Conservative lead, Tim Hudak, must get credit for recognizing reality. Liberals, whether big L or small, have expanded government into all aspects of life, hiring many more government employees along the way. There are other paths to public bankruptcy, but this is a sure one. In spite of repeated warnings, rapidly increasing electricity rates, increased debt and economic stagnation, this path has been undeviating. Now we have a politician who realizes this is unsustainable.


Kelly McParland
National Post

Give Tim Hudak points for honesty

His promise on Friday to chop 100,000 public-sector jobs left no room for doubt

Ontario PC leader Tim Hudak has done an odd thing — so odd that most Ontarians probably haven’t quite grasped what he’s up to. In announcing his plan to take an axe to the public sector payroll (and admitting that teachers would be included along with everyone except police, nurses and doctors), he’s openly declared his intentions, and thereby offered the province’s voters a clear choice in the upcoming provincial election.

In doing, so he’s rejected what has become the accepted norms of Canadian politics: Honesty usually is not viewed as a good policy among candidates seeking election. Spin is the rule of the day. You might hint that some sort of “restraint” will be needed if the economy is to be saved, but you wrap it among promises that no jobs will be endangered, no impact will be felt, and spending can continue to grow at the same old unsustainable pace. That certainly was the Ontario Liberal party’s approach to winning elections in the province under Dalton McGuinty.

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    The paradox about worrying about job creation and retention is that those who preach about it are the worst at doing it.

Mr. Hudak has rejected that approach. After 11 years of Liberal rule, and the stagnation of an economy that once was Canada’s strongest, Mr. Hudak has chosen to be straightforward. His promise on Friday to chop 100,000 public-sector jobs left no room for doubt. “I take no joy in this, but it has to be done if we want [private] job creators to put more people on the payroll in our province,” he said.

The opposition leader evidently believes that voters understand the damage that’s been done to the province under the Liberals, and that they are mature enough to choose between repairing it, or continuing along the same route.

Liberals and New Democrats denounced Mr. Hudak as cold, cruel and callous, deaf to the impact the cuts would have. Pundits dissected the numbers and suggested there might not even be that many public servants on the payroll to cut. The union for civil servants warned it would affect child-care workers, help for the elderly and people with disabilities, non-medical hospital staff, schools and special education. “Every family in Ontario, every community in Ontario will be hard hit,” said CUPE Ontario president Fred Hahn. Every single family in Ontario.

In reality, the public payroll under the Liberals has grown so steadily that a reduction of the magnitude suggested by Mr. Hudak merely would return it to 2006 levels. The Liberals at the time insisted the province was in great shape, so well-operated that they deserved another four years in power. So it’s patently dishonest to suggest, as Liberal Premier Kathleen Wynne has, that returning to those levels would be “disastrous.”

For her part, Ms. Wynne promises to spend $29-billion on transit without having to jack up taxes, fees, levies or other charges, and without tacking more debt onto the existing $12-billion annual shortfall, or foregoing any of the other spending commitments she has made — all the while insisting no Ontarian will feel any pain as a result of any of her decisions.

Ms. Wynne is insisting everything is fine, despite the doubling of the debt, the rise of the deficit, the warnings of the lending agencies and the ongoing closures of factories. (Unilever last week became the latest to depart, closing down after 50 years). Not only is there no danger, says Ms. Wynne, but Ontario can afford to borrow more, to spend more, and add it all to the existing debt with no one noticing the difference.

Ontarians overwhelmingly feel it’s time for a change of government. An IpsosReid poll last week put the figure at 72%. The Progressive Conservatives could easily have run a low-profile campaign seeking to take advantage of that discontent. It would have been simple to blanket the province with images of Dalton McGuinty and the slogan “Had enough?” There would have been little risk, and Mr. Hudak could very well have become premier out of the deal.

Instead, he’s being honest. If he wins, he will have a mandate to carry out his plan — a mandate he would have lacked if he’d toured the province fudging his agenda.

It’s a risky bet. If Mr. Hudak loses, he will be blamed by the party and certainly lose his job. And Ontarians will have no one to blame but themselves when they get a government that continues to put off the inevitable reckoning until later, when the province’s massive debt load is even higher.

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     The election is on June 12 and I’m very curious how this will play.

Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “
Days of Songs and Mirrors: A Jacobite in the ‘45.
Cui Bono–Cherchez les Contingencies

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