Don’t get me wrong! Cheap tuition, pharma care, and a $15 minimum wage, what’s not to love?
The soul-crushing debt that follows it, of course.
Ontario is continuing on the fast track toward financial insolvency, as the Premier doles out more patronages to win re-election in 2018. Yes, our hospital wait times are miserable. Yes, Ontarians are suffering, but these (short-term) spending choices simply do not add up.
The Premier is not investing in the future of Ontarians but is rather bleeding them dry. Leaving the future uncertain.
The cost of the Premier’s unstable promises is simple to spot.
The 15 dollar minimum wage increase will cost the province potentially 90,000 jobs. The recent spending proposals will only do one thing, put the province back into a hulking $8 billion deficit. This is proposed precisely after the province balanced the budget for the first time in perhaps a decade.
These consequences are not small. According to the Financial Post, only one thing puts Canadians at risk during future recessions.
“The decisions in the last decade to increase spending faster than the provincial economy’s growth, and faster than was needed to keep up with a growing population and rising prices, contributed to Ontario’s dire fiscal problems. And when a nasty recession hit the province, the government found itself with spending levels it could not afford and big deficits quickly emerged. Now, the government is making the same mistakes and exposing Ontarians to the same risks all over again.”
The problem also does not stop there. As a report by the Fraser Institute shows, in fact, Ontario was dead last among provinces in growth in median household income between 2005-2015. The only indicator that put Ontario in the lead, was the growth in government debt.
This shows that Ontario’s economy is not actually growing through the private sector. Instead, it is being pushed forward by large sums of government spending, government scandals, and borrowed debt.
Remember the gas plant scandals, e-Health, Ornge and Windsor Parkway? The Pan Am Games, hydro, and turbines? The list of scandals goes on.
All of these failed, terrifyingly expensive, incompetently handled projects have a cost, and it’s on full display.
Ontario’s debt has almost tripled in the last 15 years.
When the Progressive Conservative government presented its last budget in 2003, the debt was $110 billion. It is projected to be $312 billion this year and $336 billion in 2019-2020.
Within the next 12 years, the province’s working age population is expected to fall to 60 percent (from 68%) of the general population. While the number of Ontario’s seniors is expected to grow to five million by 2050, twice the current number.
We will have fewer working people, more expenses, and no way clear way to pay it back.
It’s time Kathleen Wynne stopped spending all of our money and started taking the economy seriously.
We simply cannot afford anything else.
What do you think? Let us know below!