Quote:
Originally Posted by dmacc
If economic growth is artificially propped up by deficits then all you're doing is disguising poor economic output and putting yourself in a deferred negative position. Our economic output has been extremely slow for decades, its just been masked in the past by large deficits creating artificially higher inflation numbers. The only solution is deregulation and an economic strategy that offers incentives for growth where wanted.
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It's not so much propped up as growth being dependent on core infrastructure being in place. When it isn't, we lose opportunities to places that have it. When we have more to offer in terms of infrastructure and services we are more competitive for those opportunities. Yes there needs to be a balance to avoid frivolous spending but at this point the cuts are being made to core infrastructure and services.
Actually these types of cuts make the economy more reliant on short-term measures to attract investment that usually have zero/negative long-term economic impact, such as giant tax breaks where the investment is tied to paying very little or no tax and leaves once there is an expectation of re-investment or paying tax.
IMO Manitoba makes itself attractive to investment by having an available, capable, reliable and skilled workforce. Forget the zero sum tax incentive games. None of the parties articulated any kind of plan for this in the recent election and it's pretty clear our governing party is really hoping for a miracle because they have no plans to invest in our economy through infrastructure or the people who make the economy run. They are all focused on personal attacks and which party did what to make our system a mess.