Boosting the Greater Toronto Area’s economy could come at a high price in public opinion
In war, the first condition of victory is the mobilization of public opinion. This axiom will be especially true in the local and global battle with the economic downturn.
Our banks, insurance companies and the broader financial sector have been hit. Our manufacturing sector is suffering layoffs, and many Canadians have seen their saving and retirement funds walloped. The economic decline and loss of jobs have been faster and steeper than expected, taking many by surprise.
As the Greater Toronto Region Economic Summit convenes today, our leaders and policy-makers should keep in mind not just the public’s call for immediate action today but the long-term implications of the current stimulus campaign.
Ontarians are ready to embrace proactive government action but are reticent to foot the bill.
A new Nanos poll conducted in partnership with the Economic Summit and the Toronto Star shows that Ontarians are ready for action and government intervention on a scale rarely seen. A longer-term view, however, suggests caution in the scope of stimulus from a public opinion viewpoint.
Until recently, globalization and prosperity, both personal and corporate, reinforced a perspective that markets should be unfettered, and that the best thing that government could do to ensure prosperity was not to intervene or regulate.
However, since the financial meltdown in the fall, governments – even conservative-minded governments – have embarked on an activist path unthought of a year ago. The right-wing Bush administration embraced massive stimulus initiatives, and even the Conservative government in Canada led by Stephen Harper joined the global stimulus campaign.
Polling conducted by Nanos indicates that Ontarians were more likely to be pessimistic and concerned about the state and strength of the economy compared with their compatriots in other parts of Canada.
It is no surprise that the recent poll shows a significant appetite for government action.
Ontarians believe the government should play a significant role in fighting the downturn. The research suggests that Ontarians assert that the top, short-term priorities should include restructuring our industrial base and investing in our labour force. In the long term, Ontarians would prefer a balanced approach, which would be a mix of investments in people, industry, research and financial services.
As unemployment rises, dealing with the human impact of the downturn and helping as many as possible seems to be the thread from public opinion. Similarly, a significant majority of Ontarians also believe the government should intervene to help companies in key sectors of the economy to weather the economic storm.
But even with this appetite for a greater government role, there was a significant negative response to a proposal to increase personal taxes to help the government cushion the negative impact of the economic downturn. The message: don’t turn to taxpayers today to fight the downturn.
It is this “no” that is at the crux of the short- and long-term challenges. When asked to help foot the bill for the stimulus they embrace, Ontarians are reticent.
However, even with the short-term support of stimulus, there are a series of cautionary notes for our political leaders and public policy-makers.
First, much of the initial public opinion related to this issue reflects a sense of urgency to soften the economic downturn and to be proactive. Currently, little is known of the possible magnitude of the cost of the economic stimulus and the real long-term impact it will have on government debt.
This is reminiscent of public opinion on the environment. Asked whether the environment is important, Canadians say a resounding “yes.” Prompted on the potential cost of environmentally friendly actions, public opinion is more of a mixed bag.
In a time of economic uncertainty, Ontarians want to see government action and are ready for deficits. However, as time passes, and the long-term costs to taxpayers mount, it is uncertain whether the current appetite will sustain itself.
In many ways, this is akin to a home repair that goes wrong. With the best of intentions, you start off wanting to spend $1,000, open the wall and see you need another $1,000, and so on and so on. Before you know it, a seemingly manageable job turns into a massive initiative with no end in sight and your good intentions turn to misery.
Fighting this economic downturn could yield similar results. If the downturn persists, initial estimates of the stimulus debt will balloon.
Second, the nature of the recovery in Ontario could be slow compared with the rest of Canada. The other regions of the country with commodity-based economies are more likely to rebound faster than Ontario. This, and Ontario’s recent “have-not” status, will possibly be further blows to Ontario’s self-perception as Canada’s economic engine.
For Ontario, it adds up to a call to action. Ontarians clearly see the need for a broader strategic plan not only for a short-term recovery but toward long-term prosperity.
Even with our diverse economy, dealing with the challenges in our financial and industrial sectors will be the first critical steps in the Ontario recovery journey.
Like any battle, it will take a collective tenacity of effort and a creative prosperity vision to craft what will be Ontario’s future competitive advantage.
What do you think?
Cheers,
NJN
Most Read Comments
Highest Rated Comments
Ah----the money pit---I wish I had one too. When public largess is on offer, on... more
Tom Good (British Columbia) 07 May 12:55
Nik's comments are very interesting. On the one hand people, particularly Ontari... more
hollinm (Saskatchewan) 07 May 14:06
There is no need to poll the veracity of this truism: citizens expect massive an... more
gerry l (British Columbia) 07 May 14:43
Harper was intending on a coalition with the Bloc too. It is in writing and it ... more
Jack (Ontario) 23 May 16:15
I'm not aplogizing for anything. And no one is listening to you, that's for sur... more
Jack (Ontario) 24 May 00:18
Jack, Even Informed1 wouldn't be foolish enough to attempt to refute your point... more
RonaldODowd (Ontario) 24 May 11:33
Comments
Tom Good
Ah----the money pit---I wish I had one too. When public largess is on offer, one has only to look to the US to see those who willingly jump on the bandwagon. When one observes the extent of corporate infuence in and on government, the electorate has every reason to be wary of what our government leaders tell us. I am not too old to forget the phrase David Lewis coined---"corporate welfare bums".
In the present circumstance, I believe the unemployment insurance benefits should have been addressed in a much broarder context, training and retraining facilities should have received equal grants to eliminate fees to ungrade the workforce skills so we are in a better position when the upturn inevitably comes. The young people entering the workforce or trying to enter the workforce should be encouraged to stay in school as there is no job to go to-----who is considering their plight???
The current economic downturn is not just restricted to Ontario but it gets the press. Forestry has enjoyed a slow downturn for years and suffered government indifference or, shall we say, they were on their own-----there are hardly a half dozen lumber mills still running in British Columbia and never saw any federal government concern and I am sure the other forest product areas never saw any government largess either. Is there selective concern ??? I am not opposed to THOUGHTFUL government intervention but I am wondering if we are not being just a little "spooked".
One thing I am certain about is that I will not support any government that now comes along and imposes higher taxes to pay for the mess. Through maximum efficiency in operations , government must find funds within their current revenues to eventually pay down the debt. I am not too sure that the federal government has not politically cut its throat already.
[updated Thu May 07 12:55:37 EDT 2009]
07 May 12:55
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hollinm
Nik's comments are very interesting. On the one hand people, particularly Ontario, want the government to take an activist role but don't want to pay for it in the long term. Hence the predicament of any government trying to find their way in these uncertain times. The Harper government has passed a substantial stimulus package and it is too soon to know if it is going to have the impact that is needed.
There are those that say any money spent by the government is really wasted in respect to ending the recession. However, noone can argue against spending on badly needed infrastructure which will help the country in the long term and create some badly needed jobs in the short term.
Helping failing industries is a questionable strategy and will result in the loss of taxpayers money down the road. However, failing to try to support the auto industry and/or the forestry sectors will not help any government politically. I suspect the analysis has been done. It is probably cheaper to put money into the auto sector rather than pay the costs of EI and Welfare etc.
The fact remains the government cannot create jobs in the private sector and unfortunately for Ontario it has to go through this transition. The government needs to ensure that retraining programs are sufficiently funded and actually are effective. EI needs to be balanced and fair all across the country. Unemployment has the same effect on individuals in all regions of the country. It is not the government's money.It belongs to the employees and employers who pay into the system.
On the other hand the provincial governments have an obligation to make sure their policies i.e. taxation etc are as competitive as they can be so they can attract the future businesses that will create the jobs badly needed by people today.
The fact remains Canada will not come out of recession no matter how much money is spent by the government until the U.S. recovers.
[updated Thu May 07 14:06:29 EDT 2009]
07 May 14:06
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gerry l
There is no need to poll the veracity of this truism: citizens expect massive and timely economic intervention during downturns but, predictably, do not support increased taxation to pay for it.
Marshaling bailouts, cutting increased EI cheques, funding infrastructure programs all cost real loonies to undertake, yet the public consistently opts for the immediate, less painful route of passing these costs on to the next generation as deficits.
In the current recession Ontarians should gladly buck up their share of the cost of their own makeover since the rest of Canada - Ontario's captive market - will pay, as usual, the balance of the bills.
Ontario reinvents itself on Alberta's and BC's dime - a new twist on a traditional formula.
[updated Thu May 07 14:43:24 EDT 2009]
07 May 14:43
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Bernie
Before I read this here, I had read it in the Toronto Star. On the surface and in general it was a good article. But there some urban myths being accepted as truism.
Ah yes, the mobilization of public opinion. Is that public opinion based on fact or on that fantasy which the governments and the elite controllers of what passes for public information. In the same paper today James Travers wrong that education is the only magic elixir. And he is right. BY education I mean information based on facts, truth, realism. All else is not education, tho it may be public opinion.
I don't believe in the government (taxpayers' money) should be spend in the private sector. I am completely against it. I have always supported government providing money to those who don't have enough to provide the basics. The working poor and especially now those who have lost their jobs. I understand that unemployment is still less than 10%. We are a sad group of people if the other 90% can`t provide those 10%. Have our human values sunk that low.
Banks, insurances companies, institutions, any sector, financial or otherwise, are all inanimate entities. We do not have to be concerned with them. We do have to be concerned with individuals and only those who need help.
The elites who control the above have not shown me that they are in need.
``The economic decline and loss of jobs have been faster and steeper than expected, taking many by surprise.`` It did not surprise the educated and those who read them.
``Ontarians are ready to embrace proactive government action but are reticent to foot the bill`` Not quite true. For the uneducated maybe, but for many others favoured proactive action for those who needed it and were will to contribute for that, but not to foot industries`bill. There`s a distinction.
Among those who were polled many may believe that government action would be helping everyone. However if they had been given a choice as how various scenarios of action could be employed I am sure the answers would have been different. I can only assume that they have not the education to do research into the various options available.
Mr. Travers was right. Only through an educated electorate who demand that their representatives enact good legislation can we expect better lives for all of us.
[updated Thu May 07 20:17:42 EDT 2009]
07 May 20:17
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RonaldODowd
Money Flowing Gets Governments Re-Elected.
Personally, I'm really surprised to find out that Kevin Lynch, Clerk of the Privy Council, will be retiring shortly. It's a great loss for both the public service and the Government of Canada. Lynch was almost universally held in the highest regard.
He will be replaced by Wayne Wouters. What impact will this change at the helm of the PCO have on the allocation and disbursement of funds targeted toward public works projects, infrastructure or otherwise remains to be seen. No question it's in the Harper government's political interests to operate like a well-oiled machine. One can debate whether that has in fact been the case up until now.
Personally, I don't believe in letting emotions and personality conflicts get the better of sound decision making and effective implementation of government policy and priorities. I also don't think it's necessarily in one's own best interests to go out of one's way to ruffle public service feathers. With an election on the horizon, you need to be able to count on a neutral public service -- one that is streamlining the flow of funds rather than putting up bureaucratic roadblocks.
Wouters will have his work cut out for him. A government's political survival may depend on how well he succeeds in implementing the spending priorities outlined in the last budget.
[updated Thu May 07 22:20:52 EDT 2009]
07 May 22:20
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RonaldODowd
Gilles Duceppe: Going Out Of His Way To Not "Get It" In Quebec.
Smile, Michael, smile. Goods times in Quebec are not far off, especially now that parts of the Bloc's next campaign strategy are slowly surfacing -- the BQ plans to paint the Liberals as nothing more than the new rhetoric party, prancing across Quebec with only inconsequential but nicely-sounding platitudes, otherwise known as federalist-Liberal pablum. Clara Peller once famously said: "Where's the beef?". Duceppe, is convinced there isn't any. Revelation can be a wonderful experience -- or in his case, quite the opposite.
Go ahead Gilles, trot out all the old chestnuts of eons past. Talk to Quebecers about Iraq, torture, national security and any other issues that you are desperately grasping at to impede Liberal progress...
Of all people, Duceppe should know the mentality of his home province. Most voters are not interested in yesterday's philosophical news. They get it -- bread and butter issues along with job creation are today's political priorities. How many jobs in Quebec has the Bloc created since 1993? Quebecers are looking for something better.
Their most recent dance partner is now a shadow of their former selves: watch for every Conservative MP, except for Maxime Bernier, to lose their seats in the next election. Culture and crime did them in politically along with the perception that Stephen Harper was a bit too much of a hard-ass for Quebecers' delicately refined palate.
Translation: a political opening for Michael Ignatieff that he can drive a truck through. Then will come the cautious balancing act: putting something concrete to Quebec that addresses their legitimate concerns without being seen to have given the store away to that province. In short, Michael has to have the beef without going overboard.
We all remember how English Canada reacted instinctively to the possibility of a Liberal coalition government under Stéphane Dion. To my mind, there were two lessons here - English Canada did not want to see a democratically-elected government subverted without the natural follow-through of an election. Secondly, and perhaps more importantly, English Canada quite regrettably reflexively recoiled at the possibility of a decent man becoming prime minister. Conservative muck had done its job effectively.
This is the lesson that has been well learned in Liberal circles. Now, all that remains is to carefully put it into effect and reap the potential electoral rewards across Quebec.
[updated Sat May 09 13:39:01 EDT 2009]
09 May 13:39
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RonaldODowd
A Visit to Doctor Defeat's Office.
Sometimes, even the best of friends can suddenly find themselves on the outs. Some relationships are of a prickly character from the get go -- you don't like the guy at first, that is followed by a political rapprochement which is ideally, politically expedient for both parties. Then circumstances change for the worse and distance is placed between them.
Take the case of two patients who visited Dr. Defeat's office. The conversation might have gone something like this:
Patient 1: Don't worry, I saw this guy many years ago. I wasn't sleeping. I was stressed out and political pressures were simply unbearable. I needed help and I needed it yesterday.
Patient 2: Did he really help you get through it? How did he do it?
Patient 1: He offered me a series of choices, none of which were that appealing. In the end, I followed his prescription and simply walked away. I've never regretted it since.
Patient 2: Walking away seems to me like the easy way out. That's simply not part of my DNA...what other options did he suggest?
Patient 1: He told me that I could stand and fight. Or I could resign myself to defeat and simply go through the formalities...
Patient 2: Can't wait to get through the door. I know what's right for me. I'm ready to take my pill. Do you know if it's sugar-coated?
[updated Sat May 09 17:20:50 EDT 2009]
09 May 17:20
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RonaldODowd
BC Election.
If the polls are to be believed, Liberal Gordon Campbell will soon be on his way to another term as BC premier. That begs the obvious political question -- if Campbell gets back in, how does that affect Harper's support in British Columbia in a year that is also likely to produce a federal election?
Is a Campbell win good for Harper bearing in mind that they share much of the same electorate? Conversely, will vote fatigue hurt Conservative chances without the highly-motivating factor of a Carole James led NDP government?
[updated Sun May 10 11:01:07 EDT 2009]
10 May 11:01
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RonaldODowd
That Great Conservative "Tidal Wave"!
There he was, the Prime Minister of Canada all puffed up in front of 2300 Conservative Party faithful in Montreal yesterday.
Stephen Harper says he hasn't written off Quebec. Quite right -- it's the other way around. Quebecers have written off Harper and his government. The PM claims that his party and organization are getting stronger across Quebec. You could have fooled me. What I'm hearing is that in the provincial stronghold, the Quebec City region, attendance at party annual general meetings is not exactly "overflowing".
It will be interesting to see what the CPC can do on the ground judging from the turnout in Montreal. Assuming that the entire province was represented at the rally, that works out to about 30 people per riding.
If Harper wants to have a minister from Montreal, perhaps he should pay a visit to the nearest church...that should increase his chances, albeit slightly!
[updated Thu May 21 09:35:24 EDT 2009]
21 May 09:35
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RonaldODowd
Kissing Off Louis-Hébert And Québec Ridings!
I want to thank the Conservative Party of Canada for making this Liberal's day. It was amusing enough to see the "ADQ" meeting over at the Queen Elizabeth Hotel in Montreal. Perhaps the Prime Minister should take on the ADQ leadership. He might have better luck in that job than he has in his present one...
Watch for defeated ADQ MLAs to run in these two ridings for the Conservatives. All I can respond is -- THANK YOU, JESUS!
As a result, the Liberals will be more competitive against the Bloc Québécois in these two ridings. As for the Conservatives, I'm predicting that the next campaign will be their last gasp in Quebec. They are headed for at least a decade in the political wilderness. Couldn't happen to a nicer bunch of Adéquistes, uh, uh, I mean guys.
[updated Sun May 24 12:02:25 EDT 2009]
24 May 12:02
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