Saturday, May 3, 2008

Haldimand "McGuinty is Proving He is Accountable"

I was searching for a news article on the web and came across a very interesting article by the National Post. This article says it all about where Mr. McGuinty's priorities are. The good thing about this article is that the information is based on Statistics Canada data, so it is not someone's personal opinion.

So this does prove one thing ro me;

McGuinty is following through on his promise that his government will be "Accountable" to the hard working people of this province. My problem is that this is not the "Accountability" that I believe most Ontarions were looking for!

April 30, 2008

The National Post

‘Jobs, jobs, jobs" was a catchy refrain during the federal election of 1984. Nearly 25 years later, the slogan may be making a comeback in Ontario. Yet, this time, thanks to Premier Dalton Mc-Guinty, it is the public sector rather than the private sector leading job growth. This approach cannot succeed because it does not add up.

During Mr. McGuinty’s tenure, Statistics Canada reports that private-sector job creation has grown by 2.1%; whereas the public sector has grown by 15.5%. There are now 101,882 more people employed by the provincial government than when Mr. McGuinty took power. That is triple the provincial population growth rate, which only grew by 5.3%. Over a similar time frame, the private sector only generated 108,000 net new jobs.

Notwithstanding the different economic challenges each faced, it is interesting to compare Mr. McGuinty’s performance on the job front to some of his predecessors. Mr. McGuinty has grown the public sector more than Bob Rae, Mike Harris and Ernie Eves — combined!

Over five years, Bob Rae shrank the public sector by 21,673 jobs and his high-taxing and high-spending policies drove net private-sector job growth of a meager 12,500. His successor, Mike Harris (and Ernie Eves), grew the public sector by 47,235. Of note is that the Harris growth came outside the main departmental bureaucracy, which declined by almost 10,000 during his tenure.

Mr. McGuinty may defend his record of public-sector growth by saying he promised more nurses, more teachers, and more doctors. While this is true, the data reveal that departmental staff has also ballooned — up by 8.8% to 102,180. Health care, social services, universities, colleges, training, teachers, hospitals, and all other provincial government employment (excluding government businesses) grew by 16.6%. Increasing the size of government like this, of course, increases the cost of government and the burden on taxpayers. Importantly, this increased burden on taxpayers comes at a time when the economy is facing trouble.

Private-sector economists are predicting a rough ride for Ontario’s economy. One doesn’t have to be a Nobel laureate to identify some of the challenges. The price of oil is at a record high, the Canadian dollar is at par with the American dollar for the first time in decades, a U.S. slowdown is reducing demand for higher-priced Ontario products, and international markets are increasingly competitive for manufacturers.

There is little politicians can do to influence these macroeconomic forces. Unfortunately for taxpayers, however, politicians at all levels of government like to be seen to be doing things to reassure voters that they are in charge. Too frequently, this reassurance comes in the form of increasing the size and intervention of government.

Government, along with its ability to raise revenue and provide services, is a function of the economy it oversees. A healthy private sector that creates wealth and a tax base is what provides for jobs in the public sector, not the other way around. A simple rule of economics: You cannot multiply wealth by dividing it. At some point Mr. McGuinty will have to realize that the price of constantly expanding government does not add up.


  1. McGuinty is proving to be the worst leader this Province has ever seen. I can't believe that the majority of people fell for him a second time around. I can tell you that the public would be just damned stupid if he is ever voted in again.

  2. Thanks for your comment. I do agree! The sad thing is that "we" will pay the price in the end.