Watching the titans do battle

My thoughts turn to our libertarian-leaning friends every time I see another example of large scale corporate subsidization. People whine and moan about the nickels and dimes sloshing around New Brunswick to try and prime a little economic development.

Check this out.

An EU official said the US subsidies [to Boeing] between 2004 and 2006 had caused Airbus to lose $27 billion dollars and were illegal under world trade rules.

Now, even with currency parity, $27 billion over three years is just plain unbelievable. Add up all the grants given in New Brunswick since the fish the aboriginals gave the Acadians (subsidized of course) in return for guns back in 1735 and you wouldn’t have $27 billion. Not even in current dollars.

Regardless of your ideology, you can’t deny the billions and billions of dollars spent by government (or forgone through tax breaks) to stimulate economic development. Whether it’s the billions in forgone revenue from the oil sands of Alberta to the Boeing protection schemes of the U.S. government to the billion dollar grant program for the auto sector in Ontario, the money is served up and served up big.

Just not in a place like New Brunswick.

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0 Responses to Watching the titans do battle

  1. mikel says:

    Nice try, but like ANY ‘political philosophy’, libertarianism is not dependant on the actions of others. Is the peace movement ‘invalid’ because there are lots of wars and conflict? Not at all.

    And again, see my post below, New Brunswick is handing out HUGE subsidies, far more than the auto sector in comparison to the size of the economy.

    Irving and McCain have gotten montrous amounts of subsidies of various forms over the years. And much of their subsidies is outright cash. In ontario the main subsidies are by providing land, equipment, and training, NOT cash shovelled into the owners hands.

    Elizabeth Weir once said that Irvings loans should be recalled, now, why would a company that size need to borrow money from the government? And how much government money went to Irving loans?

    It’s true that big business essentially functions on government handouts, its not true to try to say that New Brunswick doesn’t also. It does so probably more so than any province in Canada. It just isn’t going into the things YOU like. Which is again why I always urge you to get political, there’s lots of moola on that gravy train, but it goes to those who ask for it, and there are lots of people in the province who ask LOUD.

  2. NB taxpayer says:

    In May, due to the fallout from tax hikes and adjustments to property assessments, Graham pledged to look into “tax breaks instead of grants and loans to attract companies to invest in the province, stimulate job creation and further the government’s agenda of self-sufficiency.”

    Not a bad idea, if you were actually serious about doing it. Unfortunately, for NBers, it only took Mr. Graham’s tax-and-spend regime just two days to back out of that promise whereby his government funnelled millions to corporate giant Rogers Communications Inc.

    So not only is he continuing with this ridiculous practice, he is willing to lie to the electorate about his intentions. I don’t know how you rate your politicians, but in my book that’s not the kind of person I feel comfortable with running our province.

  3. mikel says:

    EVERY politician says that. Say hello to Stephen Harper lately? Lying goes with the territory. How many votes come to guys who say “we’re going to pile on the gravy train good and thick!”

    The problem again is the media. A government of the size of New Brunswick simply has NO CHOICE. Again, go back to John Dewey, government is the shadow that big business casts over society. You can make changes to the shadow, but that doesn’t change what’s making it.

    The quid pro quo would quite simply be, IF a company is going to rely on government for help, they should share the wealth. That’s what the tax system is supposed to do, but as we know, greed is like stupid-it’s limitless.

    So at least guys like Danny Williams are standing up to oil companies and saying he wants a better deal. And places like Norway control their own oil, and guys like Chavez is nationalizing them. Ironic dont you think that you’ll even hear people DEFENDING those poor oil guys when it comes to Venezuela!