Change In the Wind Blog

Please take part in this public consultation by Jim Flaherty, Minister of Finance.

The survey lists five suggested areas of “economic stimulus” that you are supposed to rank, and also offers a sixth option, where you will be allowed to suggest your own priority on the form’s next page.

What I did was make my own priority #1, then listed the rest in the order of what I felt were most legitimate/least threatening to long term stability, and the least redistributive. The substance of my #1, of course, was that the government not attempt to artificially stimulate the economy, as every effort to do so requires moving assets (in the form of taxes etc) from society as a whole, or from more productive sectors, in particular, to those which are least efficient and represent the most drain on the economy.

I then ranked the others like this:

(2) infrastructure (just to acknowledge that at least some infrastructure is legitimate and necessary for government involvement);

(3) build strong sustainable labour markets and training incentives (my intention here is that Canada be promoting international trade, and the free market can take over);

(4) invest in housing (I don’t believe government should be doing this, but at least real estate usually doesn’t depreciate and the investment wouldn’t be a complete waste);

(5) support traditional and emerging industrial sectors (I read this primarily as “bailout the industries,” which rewards inefficiency and steals from other sectors which have learned to function productively in the current market);

(6) improve access to credit (my argument is that artificial intervention into the area of credit with lead to serious issues down the road – think of what happened in the United States when the bubble burst).

Aside from the ranking of stimulus priorities, the form also asks what can be done to help keep the economy moving. What I stressed is that clear taxation rules and low tax rates, combined with balanced government budgets, offer stability and make an economy inviting for foreign investment.

Take the survey and say no to the implicit national socialism that undergirds the drive for government-invented “economic stimulus.”