Quote:
Originally Posted by Ozabald
That’s quite the argument for equalization. And a province’s wealth has to do more than just oil and gas. Given the abundance of resources in MB and its geographical location in Canada, it should be a wealthy province; but it’s not. Why? What happened to the “Chicago of the North”?
Equalization makes a province lazy. Why bother making difficult choices with regards to spending and economic development when you can go cap and hand to Ottawa and receive a nice fat cheque.
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What an uninformed take. Just because we have "resources", doesn't mean extracting those resources are worthwhile in the current global economic climate. Just because you have deposits of nickle or copper or lithium, it doesn't mean that mining them is profitable given the market price of the commodity and the costs associated with mining in northern Manitoba. If a company can extract lithium for $20/ton in South Africa and it costs $50/ton to extract in Manitoba, and the market price is expected to be $30/ton for the next 20 years, it's a no brainer as to where global corporations are going to set up extraction operations. Same thing goes for fresh water: there could be a fresh water shortage in the next 100 years, but doesn't mean Manitoba is missing out on some sort of economic boom despite having massive fresh water lakes.
You can't blame Manitobans or Manitoba governments for the prevailing prices for commodities that are dictated in a very global market, it's just beyond our control. Same thing goes for AB and SK: if oil prices fall and remain low, so too will investment and employment and royalties and taxes they get from their energy-based industries. Canada is a small open economy that is at the whims of the global market, and that's no person or organization's fault. To write of Manitobans as "lazy" because we aren't a "Chicago of the North" is stupid. Winnipeg was a mid-way shipping point in an pre-panama canal era where railways dominated transportation networks during a time when most goods in North America were sourced in North America. Things change, and most stuff we import is manufactured overseas and gets shipped to Vancouver or Montreal, and makes its way here by truck or train, but the versatile nature of highway networks means things can spread out more and be less reliant on less versatile rail networks.
As for equalization payments, you can't go "cap in hand" to Ottawa for a cheque. There is a defined formula established at the federal level that dictates who gets a payment and how much, it isn't negotiable.
People act like if only the Province or City could "elect someone with vision" that the entire economic context of this province could change. As if there is some lever on Broadway or Main street that some politician could pull that would just make the economy grow faster. News flash: there isn't. There is so much more nuance behind the economy and how political choices affect it. Not one single party, left, right, or centre, has a monopoly on "economic growth". Tax cuts have been proven to not stimulate the economy long term, and excessive government spending is also detrimental. What is proven to do the economy good though? A well educated/skilled labour force, easy access to global markets (transportation), and higher citizen satisfaction. These things are marginally and indirectly influenced by politicians, and so good governance involves trying to modify these parameters to allow the economy to grow better within the constraints of living in a small, isolated region subject to the effects of globalization.
Too many people put too much stock in what any one politician does or doesn't do, failing to realize the effects of their decisions on the economy at an aggregate level are typically pretty small. Yes, there may be a few one-off decisions that can have monumental impacts (flood way, free trade, tax cuts to bring in a mega business, improving transportation networks) but overall the every day impact is going to be marginal.