hook@coho.ee.ubc.ca (Chris Hook) (08/15/89)
I find it interesting that a number of people find the taxation increase to be reasonable on the basis of Canada providing "better" social services. Those social services were built, in many ways, around our previously affluent natural resource economy, which is no longer so affluent. We did little more than drag up resources out of the ground and ship them off (often unprocessed). This provided much wealth for the country without the development of much industry. THIS WAS A GREAT FREE RIDE to be sure. But the steady evolution toward a more global economy (just one of the factors involved), etc. has killed this free ride for good. Then came the great nationalization of our energy (remember Petro Fina?) which incured an absolutely HUGE national debt. So what the scenario? We had a rather comfortable ride for quite a while. despite the RIDE ending, government spending increased, an the so-called national energy policy sent the spending rigth through the roof, as far as national income was concerned. Our per capita debt is the highest in the western world. So then, how can we keep all these COMFY social policies when we are carrying a huge debt and don't generate enough GNP to offset it? The tory solution. TAX the heck out the people of Canada. Truely, Canada must do something, as our debt is fierce. How well has a taxation solution worked in finacial recovery of other countries? I would venture to say, looking at a bit of financial history, NOT VERY WELL at all. We do have a big problem that must be resolved. But when I look at the crippling effects of heavy taxation on other economies (past and present), I think it to be an absurd solution to the problems we now face. And this all coming from a supposed pro-business gov't. What I would like to see in this discussion are reasonable alternative debt rteduction plans, or increased national wealth plans. This is what Canada really needs, not heavy handed taxation. As a final comment, I find it a bit short-sighted to talk about how much better our social policies are as compared to the U.S.A.. We are living WELL BEYOND OUR MEANS having these social policies. As I have pointed out earlier, they were made possible but almost dumb-luck (i.e., easy natural resources) earlier in this century. Lets wait and see just what social policies we are able to keep when all the finacial shakedown finishes. By the way, the U.S. does not have the same low cost health and welfare polcies as does Canada, but they also don't live beyond their means to the same degree as Canada does either.