A lesson in Chutzpah:
“We know Ontario is the best place to live, but it’s very rewarding when so many groups, measuring so many different variables, say we’re number one, too,” Premier Dalton McGuinty said in a statement.
On the employment side, Ontario was one of the top destinations for foreign investment in North America — after California and New York State — in the first three quarters of 2011.The province also created more jobs than the rest of Canada in both the first and second quarter of 2011 and its employment rate has grown by 1.9% this year, higher than the national average of 1.6%
As I've said before, Dalton McGuinty is in a class by himself. He might just have an entire parallel universe where he and his staffers reside. There is the Ontario that you, me and about 12 million other people live in. That Ontario is a have-not province whose social services are subsidized, in part, by the oil sands of Alberta. It is also really broke. Not in the ordinary sense in which governments are usually broke, but in a style rivalling a Southern European basket-case. Epic broke.
While visiting the relatives these last few days, I spent many hours watching Portuguese state television. Few Portuguese immigrants can go about their day without knowing what the weather is like back in the village. Even if they can't find Manitoba on a map. Aside from the weather reports, the state broadcaster was also providing recaps on 2011 and crystal ball stuff for 2012.
The overall theme of these programs? Portugal is screwed. One program argued that 2012 would be the worst year in Portuguese history since the overthrow of the fascists in 1974. When man in the street interviews were conducted the message from ordinary Portuguese was clear: We are so screwed. The fear in their voices was palpable. One of the oldest nations in the world is scared it just bankrupted itself permanently.
Do keep in mind that the Portuguese, over the last 850 plus years, have been invaded countless times, conquered a huge empire, mapped much of the earth surface and gone bankrupt a few times as well. Since 1834 the country has seen 120 Prime Ministers. That works out to about one every eighteen months. By comparison since 1720 the British have had 53 Prime Ministers. The Portuguese know the meaning of the word screwed. When they get nervous you know the stuff is hitting the fan.
The Dalt is calling us from that parallel Ontario where he lives. He is speaking in that bland meandering way of his that is suppose to reassure the voters of the real Ontario. We are not screwed. Heck, we're doing fine. Ontario is the anti-Portugal and not just in the usual sense of the wine and weather being inferior. The real Ontario is more like Portugal than the Dalt would care to admit.
The Imperial Province, however, has one great advantage over peripheral Portugal: It's big. Nearly 40% of the population and GDP of Canada. In terms of relative weight, Ontario is to Canada as Germany, France and the Netherlands combined are to the European Union. We are the makers and unmakers of governments, the arbiter of affairs in the Dominion. The West may have the surplus cash, but we have the votes.
The Greeks and Portuguese, and more recently and indirectly the Italians, have had to beg Germany for bailouts. Now imagine a reverse scenario where Germany's fiscal mess was being bailed out by the rest of Europe. Nor was this a negotiated process. The Reichstag simply dictated to the rest of the continent that they were now on the hook for Teutonic profligacy. That is basically what Ontario, through Equalization and the Health Transfer, is doing to the rest of Canada. Alberta, Saskatchewan and B.C. are being forced to bail out Dalton McGuinty annually.
The European crisis has pulled the continent toward greater fiscal union. The spend-a-thon that has been the McGuinty years may very well push Canada's fiscal system in the opposite direction.
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