23 December 2015

The Liberal Legacy in Ontario

Ontario, historically an engine of economic growth in Canada, became a “have-not” province in 2009-10 and began to receive equalization payments for the first time. Since then, the province has received more than $14 billion in equalization payments, contributing to rapid growth in the size of its overall transfer envelope.

Ontario’s fiscal problems have emerged because the provincial government has failed to restrain its spending growth.

As a result, the province has continued to spend more than it takes in, running persistent budget deficits even as increased transfers continued to pour in from Ottawa.


Anonymous said...

old white guy says..........economics has never been a strong suit for liberals. we now have a federal government sending Ontario billions in transfer payments, the funds for which transfers they borrowed, so that Ontario can continue to borrow money to spread around that borrowed money to their supporters who are at the trough. It just does not get better than that. Canada is screwed.

Neo Conservative said...

the financial damage the liberals have inflicted on ontario, with all of their scandals and inaction on power generation will affect generations to come.


Bill Elder said...

It will take a generation of fiscal cuts, government down sizing, union subjugation and cheap energy to get Ontario's former prosperity/productivity back.

Regardless of the brand name on the ruling party, this MUST happen -the alternative is an economy permanently in the rust belt - now that Alberta has been taken off-line as a transfer contributor, Ontario's predicament is dire - transfers will dwindle as the federal selfie caucus run it deeper into debt and productivity stalls.

I hope you have a plan B Neo, I do and I think 2016 may be the year to make the move.

Merry Xmas to you, keep your family close and safe.

Frances said...

OTT, Neo, but Merry Christmas to you and yours.

Neo Conservative said...

and to you, frances.

spent all day yesterday (with the help of my brother-in-law) cutting up trees felled by hydro one and cleaning and burning all the slash from the ditch. ate burgers and roast potatoes sitting beside the glowing embers of the considerable roadside bonfire.

a memorable christmas indeed.