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By A Smith (anonymous) | Posted October 27, 2010 at 00:23:06
Ryan >> Building an economic strategy around air transport is looking increasingly ridiculous as time goes on.
The best economic strategy for the City of Hamilton is to embrace free market competition. Instead of taking tax dollars from people and creating high paying jobs in government monopolies, why not cut taxes so that businesses have more money to fight over.
Think about it this way, if one person is put in charge of creating everything society needs, even if that person means well, they just aren't smart enough to know how to do this effectively. However, if that same person holds a competition and tells people he will reward people who create the products that society votes are best, what will happen? The result will be more and better ideas that help everyone in society.
Ask yourself this, why should the HSR make it's service better for the people of Hamilton? Where is the motivation to do so? If they do cut costs, nobody gets rewarded for their innovative ideas, so why bother?
In contrast, if City Hall decides to be nice and cuts our taxes by 10%, or around $85M dollars, that money can now be spent by people on what they want.
When people have more money to spend, there is more money for businesses to fight over, More competition equals more and better products for society to use. Conversely, when government increases taxes and gives it to monopolistic providers of goods and services (all public employees), society produces less output and grows poorer.
If you want to know the extreme example of how this big government, high tax, low free market competition economic model works, look at Detroit...
They have residential tax rates double of ours, they also have a city income tax and yet their tax base is stagnant or declining.
Because Detroit hasn't fostered an environment that rewards competition, all that is left are people who like looking to the government for handouts, those on welfare and those who work for the monopolistic government agencies.
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