For years I have advised my economic development clients to be open and clear about any government investment made to support company expansions. Exactly how much support was given over what period of time under what conditions and what will be the payback to the taxpayer in the form of incremental tax revenue.
You are advocating absolute honesty from our Prime Minister, and that is a non-starter for any politician. I am not an economist, but I trust your assessment of the payback or lack thereof, and for a politician to admit those facts would be political suicide. The average voter has problems keeping up with the household budget and when they hear $13B, their eyes glaze over—they need an explanation they can understand. In the age of Marvel comic figures and fantasy news entertainment, It takes hyperbole to explain a position. Honesty is not cool.
The question, in the final analysis, is a political one. Do we, as a nation, want to spend what it takes to retain our economic standing in the competitive world of buying manufacturing jobs where the cost has been driven upward past the directly attributable value? Subsidies are always a gamble and seldom, in hindsight, have directly defiinable financial benefits—but aren't they a political necessity?
David - I agree with the need to be transparent and realistic with multiplier effect. I do however, believe this is an important investment. The southern US have been buying these plants (automotive for a few decades) and the numbers make it hard for Canada to compete. I worried the Southern Ontario auto production and supply chain production could have been lost to the electrification of the industry. Investments like this by global companies like VW signify that we may be able to stay in the industry into the future and that certainly impacts many thousands of jobs in Southern Ontario with a multiplier effect throughout the country. Does the government have a role to support - I don't think they have an option.
David, can you give examples of the government and agencies that demonstrate the transparency and accountability you mention in your article? I agree BTW and think this type of approach at all levels of government and from agencies would help us measure outcomes, and progress, hold each other accountable and build trust with the public.
You are advocating absolute honesty from our Prime Minister, and that is a non-starter for any politician. I am not an economist, but I trust your assessment of the payback or lack thereof, and for a politician to admit those facts would be political suicide. The average voter has problems keeping up with the household budget and when they hear $13B, their eyes glaze over—they need an explanation they can understand. In the age of Marvel comic figures and fantasy news entertainment, It takes hyperbole to explain a position. Honesty is not cool.
The question, in the final analysis, is a political one. Do we, as a nation, want to spend what it takes to retain our economic standing in the competitive world of buying manufacturing jobs where the cost has been driven upward past the directly attributable value? Subsidies are always a gamble and seldom, in hindsight, have directly defiinable financial benefits—but aren't they a political necessity?
Agreed, David. Measurement and transparency are critical, and there are significant gaps, IMO.
David - I agree with the need to be transparent and realistic with multiplier effect. I do however, believe this is an important investment. The southern US have been buying these plants (automotive for a few decades) and the numbers make it hard for Canada to compete. I worried the Southern Ontario auto production and supply chain production could have been lost to the electrification of the industry. Investments like this by global companies like VW signify that we may be able to stay in the industry into the future and that certainly impacts many thousands of jobs in Southern Ontario with a multiplier effect throughout the country. Does the government have a role to support - I don't think they have an option.
David, can you give examples of the government and agencies that demonstrate the transparency and accountability you mention in your article? I agree BTW and think this type of approach at all levels of government and from agencies would help us measure outcomes, and progress, hold each other accountable and build trust with the public.