Wednesday, December 18, 2013

Kathleen Wynne's self-destructive opportunitic mercantilism

Peter Foster: Ontario’s anti-markets deal with Cisco a self-destructive case of ‘opportunist mercantilism’
The loudly-trumpeted news that the Ontario government is to give California-based Cisco Systems “up to” $220 million to create “up to” 1,700 jobs is a typical example of “opportunist mercantilism” — that is, “beating” other governments at self-destructive policies.

...The one relatively clear statistic is that the Ontario government seems to be ponying up well over $100,000 a job. This is nonsensical.

... This game bears little or no relevance to the voluntarily, non-criminal cooperation of the free market, but it does explain a lot about the government behaviour.  ... governments aren’t interested in economically optimal results. They are interested in gestures that will win votes, whatever the costs to the economy. They play. Taxpayers lose.

Ezra Levant's take:


Anonymous said...

this is typical government nonsense. they will have to borrow the money to pay for the jobs and after cisco has taken full advantage of the government's largess they will close and leave. this has been a reoccurring pattern all across Canada.

Robert said...

We have included the post in our 'Around the Blogs' section at