Sunday, May 09, 2010

Canada's Political Landscape Socialism vs Free Markets

Canadians will have a clear choice when they return to the Polls in 2010-2011. They can continue to support the socialist economic policies of the Liberals, New Democrats and Bloc in fairer tax redistribution with the promise a "just society" economic model. (Utopia on earth)

In Britain Nancy Lucas leader of the Green Party talks about the importance "social justice" and the importance of the "Robin Hood Tax". The "king maker" Nick Clegg's (Leader Liberal Democrat) , Labor Party leader Gordon Brown policies were rejected as both parties lost seats and popular support. What is your fair share of "tax"?

An interesting article “I know this is right; you know this is right; the only question is how we do it.” Benefits from a strong Political and Moral Compass. Montreal Economic Institute.

It is time for governments to rethink a central authority, central planners are smarter or better at spending your money on priorities? Do we have an example of this "just society" on earth? If so why do the neo-liberals and proponents of wealth redistribution keep changing the labels they attach to socialism? Why shift from Global Ice Age, Catastrophic man-made global warming, to climate change?

Is anyone credible going to argue waste under any government does not occur? What makes a central planner in Toronto, Ottawa, Quebec City, Victoria more likely to understand how to spend your tax dollars, his education, his communication with political appointees and stake holders special interest groups lobbyists?

Are we going to ignore, deny we can buy the "correct data" we want through advocacy, polling, research if we ask the right questions or fund it? Look at the criticisms lodged against United Nations peer review studies, IPCC, Frank Graves, Manning Institute by opposing camps suggesting the "data" were bogus.

Canada's recovery is tied to the Global Economic Recovery. It can be stalled or worse if we don't deal with indebtedness of governments.

Standard & Poor’s, the rating agency that dropped a bombshell on the markets yesterday by downgrading Greek debt to ‘junk’ status and cutting Portugal’s credit rating, today downgraded Spain as well.

Quebec ranks only below Japan, Italy, Greece and Iceland in terms of public debt as a percentage of GDP. Quebec has been the economic model of a failed socialist state for too long. Quebec has been the largest welfare recipient of the Equalization Program. Quebec has debt levels equivalent to Greece and California has had failed to take the necessary steps in correcting the imbalance of fiscal responsibility. California has the largest state economy in the US, and it’s economy is larger than all but the top 7 to 10 sovereign nations — bigger than Greece.

Liberal Premier Jean Charest has used his majority to block, ignore calls for investigations of corruption in his government by opposition parties,  his majority allows the losses in the Pension Fund estimated in the billions to be ignored  NOT investigated by a public inquiry. Does the Liberal Premier benefit by pitting region against region, did he ignore the efforts by the Alberta Government to deal with Carbon Sequestration. Does he demand Albertans increase  their contributions for equalization programs?

The table here compares Quebec to the other provinces based on two debt measurements (gross debt and based on accumulated deficits). It can be seen that Quebec's debt is the highest regardless of which measurement is used. (Table Quebec Department of Finance above)

The breathtaking, near-$40 billion loss announced by Quebec's monolithic pension fund manager captivated the population yesterday, especially worried retirees.
The Caisse de dépôt et placement du Québec said the value of its assets fell by $39.8 billion in 2008 – to $120.1 billion – a stunning 25 per cent writedown of its net assets and the worst results in its history. Senior executives refused to apologize, however, even though the Caisse underperformed its industry peers – one study pegged average retirement fund losses in Canada at about minus-16 per cent.
Who should Canadians look to for an improvement in the wallets, a socialist utopia or a proponent in expanding free trade?

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