Friday, June 25, 2010

More Praise for HM Canadian Government

HM PM and his government have cut tariffs, cut corporate taxes and have attempts to deregulate things like telecoms. The world is noticing. The G8 and G20 nations should take note.
Leaders from 19 countries and the European Union will gather for the G-20 summit in Toronto beginning June 26 to discuss how to stem the global recession and get the world back on the path to strong, stable economic growth. They picked a good spot, as the assembled leaders could learn a lot from their host country.

Since the global recession hit two years ago, Canada has implemented a broad array of free market tax and trade policies. As a result, our neighbor to the north has surpassed an increasingly statist, mercantilist United States in The Heritage Foundation’s Index of Economic Freedom. More importantly, Canada is emerging from the “Great Recession” much more rapidly than the U.S. and virtually every other G-20 participant as well.

How has Canada done it? At the onset of the recession, Prime Minister Stephen Harper’s government moved aggressively to improve Canadian manufacturers’ global competitiveness. After extensive consultations with Canadian industries, Ottawa unilaterally eliminated tariffs on 1,755 different types of machinery, equipment and other manufacturing materials.

The Department of Finance presented a straightforward rationale for the move: “By reducing the cost of importing key factors of production, tariff relief encourages innovation and allows businesses to enhance their stock of capital equipment.” The Department projected that Canada’s complete liberalization of more than C$5 billion in imports will provide an additional C$300 million in annual duty savings for Canadian businesses.

Canada didn’t stop with tariffs. It also slashed the corporate tax rate to 18 percent. And the rate will fall farther -- to 16.5 percent next year and to 15 percent a year later.


Anonymous said...

as bastiat had stated, why build a state of the art road or waterway to make trade more accessible only to erect unnatural barriers to trade thereafter such as tariff houses? the proponents of "fair" trade and saving the X industry (as henry hazlitt put it) have produced such a narrow minded vision of what constitutes wealth creation that for someone like harper to come along and attempt to dismantle such common practices is considered too radical.
good for him for trying to do whats right in the face of such skepticism, and good on the people of canada really for beginning to see the reality of what drives economic prosperity. its a slow process but they are coming around.


Anonymous said...

Excellent post Mr. Dr. Roy, thanks a bundle, makes me feel good to read such a positive article. I wish Canadian media would praise our governments accomplishments as the American media has in the article.

been around the block said...

Like Anonymous has said, thanks, Dr. Roy, for posting this article. I didn't know any of this -- and not because I don't watch the news or, occasionally, read Canadian newspapers and magazines.

These financial stimuli, initiated by the CPC, to enable businesses to be innovative and keep employees working, are anathema, of course, to Leftards, so ironic, given that most of them in politics and in the media benefit greatly from a successful Canadian economy.

The CBC and other left-leaning MSM like to paint big business as evil, rather than showing that it is private businesses that generate profits, unlike government jobs and other tax-funded programs which tend to suck the taxpayer dry.

Our MSM are totally disgraceful and are obstructing the communication of actual economic facts to Canadians. Thank G*d for blogs.

No wonder PMSH hasn't exactly been "available" to the members of Canada's media; even when he tells them what's going on, they refuse to pass it on and usually distort what facts they know about in order to turn the Canadian public away from the Conservatives and into the left-lib fold.

I'm not at all clear that their tactics are working. More and more Canadians are catching on to the essential betrayal of our democracy by the chattering classes. Disgraceful. Shameful. Undemocratic.


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