The problem with political leaders is that absolute power corrupts absolutely. However, in Canada a lot of political leaders think they have absolute power. This belief corrupts them and consequently they try to control things that cannot be controlled.
In Western Canada the people here seem to be relatively dependent upon natural resource extraction, whether’ that is oil, coal, forestry or natural gas. An economy that functions that way is by definition a commodity-based economy.
There are surely those in Western Canada who wonder why any government would inflict serious damage on its biggest GDP contributors? The answer is some of the federal Liberals think they have absolute power and therefore possess the ability to control everything including the economy.
The root of the problem started when liberal academics who give guidance to liberal politicians successfully changed the commonly accepted definition of trickle-down economics.
What trickle-down economics now means is the trickle down of physical money to the lower classes of society. Having people believe this creates a solidified base of support who will eventually end up hating their employer. That is because their employer has more then they do and that attitude will create an impassioned voter base that will support any leader who wants big businesses to pay their fair share.
Every time this happens the fair share to be paid is a constantly moving goal post. This is because people like free money and eventually the big businesses leave the country.
As long as the Liberals in Ottawa believe their own foolish ideas, they will never understand how a commodity based economy actually works. Because of this they will never understand how cutting the top wealth producers out of the market will result in layoffs at the levels of society the Liberals claim to care about the most.
What trickle down economics actually means is a trickle down of employment from big businesses. This trickle down of employment results in an expansion of large and smaller businesses that hire more people and consequently create more jobs and in turn create wealth.
If you are wondering why Justin Trudeau wants your coal-mining job to stop existing it is because you are less important than his voter base and what you are doing is immoral. It’s immoral because you won’t sacrifice your livelihood to help create some sort of magical paradise where big businesses and natural resource extraction doesn’t exist.
The problem with going after big businesses like the ones behind Energy East, Keystone XL, Exxon Mobil, Royal Dutch Shell and so on is the people who run those companies think like a computer. Those types of companies are all about the numbers and when something isn’t profitable they stop investing in that thing.
That thing I would say is Canada as a whole. A nation that touts ever increasing taxes on big businesses as moral, who also believes that a tree is more important than the jobs to be made from tearing it down and turning it into paper is a nation that will suffer from financial problems.
The United States has joined the club of friendly places to do business. The club also consists of Mexico, China and India. The current Liberal government is pushing Canada towards the Keynesian model of economics that relies heavily on government spending.
The way that Keynesian economics works in practice is everyone is constantly putting their income into a forever rotating pot of money that everyone takes from and puts back into. When the pot gets low the government fills it back up again with inflated, taxed and borrowed money. This is why the federal Liberals believe so strongly in massive deficits and high taxes.
Under the previous Conservative government Canada had a hard time competing with China, Mexico and India. Fast-forward a few years later with the Liberals in power combined with Donald Trump in the White House the very idea of trying compete is being abandoned and its replacement is Keynesian economics.
If you are curious how Keynesian economics functions long-term, look no further then present day Europe or England during the 1970s. Fortunately for Trudeau long-term planning isn’t in his vocabulary.
Canada has two moneymaking industries they are the service industry and the commodity sector. Companies with enough resources and money to turn a bust economy into a booming one are not interested in Canada’s service industry. This country is entirely comprised of natural resources. That is what we offer the world and if we turn our back on that the world will turn its back on us.
