Despite decades of subsidies by Canadian taxpayers, Bombardier Inc. continues to be mired in a financial crisis jeopardizing its future. The latest humiliation came as the company had to sell its train-making division to pay off a substantial amount of debt due this year. Once a proud symbol of Canadian entrepreneurship, it now is the…
It’s time for the UCP to drop its newfound interest in picking winners and losers
It’s a sad day for taxpayers when their government that has “committed to being responsible stewards of taxpayers’ hard-earned money” starts bragging about its corporate welfare spending. Premier Jason Kenney should immediately scrap the new business subsidy programs his government just announced and go back to focusing on cutting taxes for everyone rather than picking…
Businesses need help, but it’s important to provide the right help the right way. Premier Jason Kenney’s economic strategy has so far revolved around three core principles: lowering taxes, cutting red tape and pushing back against Ottawa. Kenney should double down on these principles to help Alberta recover and stay away from corporate welfare. “The…
Digital technology has, for the most part, been a boon to consumers. Think of how digital technology has enabled Uber to break the taxi oligopolies, Amazon to open up the world of online product choices and Airbnb to deliver affordable alternatives to hotel stays. None of this, however, justifies the use of digital technology to…
When one government offers incentives and another one doesn't, then the comptetion to attract new businesses is no longer a level playing field
When Toronto-based Wattpad chose Halifax over Calgary as the site of its second headquarters last month, the question on many people’s minds was: Which of the two cited factors was the deciding one – concerns about Western separatism or cuts to Alberta’s tax credits for tech companies? The answer isn’t quite as simple as either/other.…
The Ontario government continually makes corporate welfare payments that fly in the face of social policy
The Ontario government’s public accounts should be a source of despair to any taxpayer. They provide the latest reminder that politicians are addicted to spending other people’s money and will spend it on just about anything. That a government program is without public demand or is unsupported by sound economic reasoning doesn’t deter governments from…
Corporate welfare causes an economic loss, exacerbated by the fact that it encourages businesses to devote resources seeking government funds
Corporate welfare handouts are a policy staple of politicians of all stripes – and they’re all wasting public money. Liberals who mistakenly think government spending is the driver of economic growth love handing out free cash to claim they’re “creating jobs.” Conservatives say they’re against corporate welfare – but only sometimes, and only if it’s…
Rather than relying on carbon pricing to make things happen, the government is picking winners and losers
By Elmira Aliakbari and Ashley Stedman The Fraser Institute The federal government announced recently that it will provide up to $12 million in subsidies to Canadian supermarket giant Loblaws Inc. for new energy-efficient refrigerators. Unfortunately, the subsidy proves again that the nation’s climate plan is severely flawed. According to the government’s news release, the subsidy…
When organizations are heavily regulated, funded by taxpayers and unlikely to shoulder losses, they’re private in name only
If buzzwords were the path to prosperity, Canada would be growing like gangbusters. But it’s not. And the federal government’s Venture Capital Catalyst Initiative (VCCI) – with an expansion announced in Ottawa’s recent economic statement – is a case of lofty words anathema to efficient and healthy capital markets. Once we peel off the feel-good wrapper of innovation…
If government believes it should discourage alcohol consumption, why does it subsidize the beer and wine industries?
With much fanfare, the Ontario government has brought back “Buck-a-Beer” by lowering the government-mandated price floor on a bottle or can of beer (with alcohol volume below 5.6 per cent) from $1.25 to $1. Ontarians who don’t drink or who consume only more expensive alcoholic beverages won’t be much affected by this policy. But for…