So checking the “Way Back Machine” to refresh our memories we find as recently as 2011 Canada was rated #1 as the best place on the planet to do business.
In 1998 we Shire Folk left the most racist, anti-business, highest crime rate in the industrialized world, most corrupt, jurisdiction in Canada (the Northwest Territories) supported by 5 billion dollars a year in Federal Taxpayer money pumped into the NWT to keep about 60,000 aboriginals and 2 Liberal seats in parliament alive and employed, and we settled 1000 miles to the south in Alberta. Back then it looked like God’s country to folks who had spent 15 years living in the Arctic.
By 2011, we were self employed, doing very well and living in the #1 business environment and best economy in the world in Alberta, Canada. We had a corrupt but business friendly government in the PC party of Alberta running things here and a Conservative government lead by Stephen Harper (from Calgary, Alberta) doing an excellent job for the nation as a whole. A study released by the Toronto Dominion Bank on the world economy rated the “Corridor” between Edmonton and Calgary, Alberta as the most productive stretch of real estate in the world in terms of dollars per capita output.
During that period, according to Forbes:
“During the run-up to every U.S. presidential election, countless Americans threaten to move to Canada if their preferred candidate does not emerge victorious. Of course, few follow through with a move north. Maybe it is time to reconsider.
Canada ranks No. 1 in our annual look at the Best Countries for Business. While the U.S. is paralyzed by fears of a double-dip recession and Europe struggles with sovereign debt issues, Canada’s economy has held up better than most. The $1.6 trillion economy is the ninth biggest in the world and grew 3.1% last year. It is expected to expand 2.4% in 2011, according to the Royal Bank of Canada.
Canada skirted the banking meltdown that plagued the U.S. and Europe. Banks like Royal Bank of Canada, Bank of Nova Scotia and Bank of Montreal avoided bailouts and were profitable during the financial crises that started in 2007. Canadian banks emerged from the tumult among the strongest in the world thanks to their conservative lending practices.
Canada is the only country that ranks in the top 20 in 10 metrics that we considered to determine the Best Countries for Business (we factored in 11 overall). It ranks in the top five for both investor protection as well as lack of red tape, which measures how easy it is to start a business.” That was then, How are things now?
For the annual ratings Forbes leans on research and published reports from the Central Intelligence Agency, Freedom House, Heritage Foundation, Property Rights Alliance, Transparency International, the World Bank and World Economic Forum to compile the rankings.
So lets investigate where we went in the last 5 years. Here is what the pundits think about Canada now. Today, under the gentle ministrations of the Notley Socialists in Alberta, and Boy Trudeau’s Liberal socialists in Ottawa the picture is changed radically and getting worse faster – truly going 90 miles an hour down a dead end street, as I said in yesterday’s post.
One contact recently sent me this from an article he read:
“Article – O’ Leary – ECONOMY MAY LEAD TO TRUDEAU OUSTER
TORONTO – Our economy is now measured in “dollerettes” and “massive debt” and Canadian businessman Kevin O’Leary predicts if it keeps up, the Liberals may start thinking about replacing Prime Minister Justin Trudeau. “I think there could be a competition for leadership in the Liberal party because tax and spend is a really dumb idea in a country of no growth,” the Shark Tank star told my Newstalk 1010 show, the Late Shift. “I don’t think Justin Trudeau will have a long tenure.” Canada’s economy is bleeding to death, he said, and the government is sticking in more knives. “I can’t believe what is happening to my country,” the investor and entrepreneur said from an investment conference in Florida. “It’s going to zero fast. This is malfeasance.”
Just a couple of weeks removed from trial-ballooning the idea of running for the Conservative leadership, he warns Canada is becoming the laughing stock of the business world. Nobody will invest here while governments talk of multibillion-dollar deficit budgets and continue to slap business-killing regulations on growth potential, O’Leary said.
“The world has figured out in the past nine months that (Alberta NDP Premier) Rachel Notley has no idea what she is doing,” he said. “Her government is killing that province. She is totally clueless and she is killing this country. I think Canadians should get on their knees and beg her to take a holiday.” Ontario’s pension plan “is a bad idea,” he said, as are the cap-and-trade discussions.
“It’s scary,” O’Leary said of all the job losses and business closures. “It is becoming a Third World banana republic.” And there’s no voice of reason in Ottawa to counter the provincial trends.
“We now have a new a federal problem,” he said. “Finance Minister (Bill) Morneau is a good guy by most metrics, but a $30-billion deficit budget is a big problem. Everybody down here is freaked out.” As are Canadian investors, who CIBC reported this week have placed $75 billion in cash on the sidelines instead of investing in Canadian business.
The reason? “The deficit was supposed to be $10 billion but now they are talking $30 billion. As a Canadian taxpayer, I don’t want my government to spend $30 billion by themselves. They don’t have the talent to do that. They need to draw in the private sector.” With that kind of debt on the books, O’Leary warns, outsiders will look to other countries to risk their money. “You want to know why the Canadian dollar is collapsing? It’s because nobody will invest,” he said.
And young people he teaches are telling him they have little confidence about the future. “They want to leave Canada, don’t want to be paid in dollerettes and pay 58.5% tax,” he said. “They don’t think they have a future here.” He says foreign investors feel the same way. “I am pitching Canada and they are not buying,” he said. “I can’t get a foreign investor to invest in Canada and I am the best salesman you’ve got.”
O’Leary said talk of him running for office with a slate of people who could help fix the country is still a long way off. “I am just glad we are having this conversation now before it’s lost,” he said. “As a Canadian citizen, I am depressed. We need some leadership right away.” If we don’t get some, he asks: “When do they bring the torches up to the castle and set it on fire?”
And what does Forbes think about Canada now? Well, using the latest available data (2014) they now find Canada has slipped to 7th place in the world. Now Denmark is 1st and New Zealand is 2nd. So what changed … nothing material … we still enjoy a substantial trade surplus with the US, which absorbs about three-fourths of our merchandise exports each year.
Canada is still the US’s largest foreign supplier of energy, including oil, gas, and electric power, and a top source of US uranium imports. We still have abundant natural resources, a highly skilled labor force, and a relatively modern capital plant. Canada enjoyed solid economic growth from 1993 through 2007.
Despite buffeting by the global economic crisis, a sharp recession in the final months of 2008, and Ottawa’s first fiscal deficit in 2009 after 12 years of surplus under the Conservatives led by Stephen Harper. Canada recovered from the 2008/09 financial crisis arguably stronger and conservative policies were validated across the board. Canada’s major banks emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector’s tradition of conservative lending practices and strong capitalization.
Canada achieved marginal growth in 2010-14 and had plans to balance the budget by 2015 despite the drop in oil prices. In addition, the country’s petroleum sector was rapidly expanding, because Alberta’s oil sands significantly boosted Canada’s proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela and is the world’s fifth-largest oil producer.
So what happened? Why the precipitous slide from 1st to 7th place in the ratings? What changed? Enter the Destroyers!
It seems that Politics Matter. What happened is people who know nothing about how economies work, voted en-mass for change because they were just sick of the corruption and boondoggles of the existing rulers. The low-information voter and the politics of gang envy triumphed again in the race to the bottom. You probably didn’t realize it but we are a civilized country, we don’t have gangs and a gang problem, right? Here we call them “Public Service” unions, and now they are running the asylum.
Politics matter. “You can have the most advanced and efflorescent cultures. Get your politics wrong, however, and everything stands to be swept away. This is not ancient history. This is Germany 1933.” ― Charles Krauthammer, Things That Matter: Three Decades of Passions, Pastimes and Politics
Well what do you think Alberta? How do you like the change now? Now that you have voted in The Destroyers. Now we have the LGBT tyranny imposed in all schools by government fiat. Now we have government sponsored murder of children and the sale of their dismembered parts. Now we have government sponsored euthanasia, and who knows, recycle the biomass?
Can anyone see even one micron of moral difference between Canada 2016 and Germany 1933? The truth screams it answer! There is no difference whatsoever, and history will judge us the same way we judge the German people of 1933. Pop quiz! Who killed more innocent people? Canadian Socialists?, Soviet Socialists?, or National Socialists? Do the math, they are all in a dead heat going 90 miles an hour down a dead end street with the CBC doing the Pom Pom girl routine in short shorts and a tight bra to distract the low information voters riding along