>> Canadian economy is now slightly stronger than the US
But... is it? That was kind of my point. It is not clear at all.
So in Canada in particular, I remember big issues with the likes of GM and Ford. Here is what happens:
1/ Government attracts GM with tax breaks, will finance infrastructure, provide loans etc, etc.
2/ GM says "great". Builds the plant, employs people. This is the good part.
3/ Once the tax breaks expire, GM declares that the plant is not profitable anymore and shuts it down.
4/ So... was the plant beneficial to Canada? Depends who you ask. Some pundits add the numbers and say that Canada lost money in the deal, some say Canada gained.
What is obvious is that government spent a boatload of money to provide a job to like 3,000 people for three years.
Some argue that it would have been much cheaper to just give that money to random 3,000 people.
But... is it? That was kind of my point. It is not clear at all.
So in Canada in particular, I remember big issues with the likes of GM and Ford. Here is what happens:
1/ Government attracts GM with tax breaks, will finance infrastructure, provide loans etc, etc.
2/ GM says "great". Builds the plant, employs people. This is the good part.
3/ Once the tax breaks expire, GM declares that the plant is not profitable anymore and shuts it down.
4/ So... was the plant beneficial to Canada? Depends who you ask. Some pundits add the numbers and say that Canada lost money in the deal, some say Canada gained.
What is obvious is that government spent a boatload of money to provide a job to like 3,000 people for three years.
Some argue that it would have been much cheaper to just give that money to random 3,000 people.