Comment 62687

By A Smith (anonymous) | Posted April 26, 2011 at 02:06:37 in reply to Comment 62684

>> we can let the loonie rise and kill manufacturing to keep inflation in check.

Our economy would be better off if current interest rates were higher, not lower. Artificially low rates encourage consumption and bubbles, whereas market rates (fixed to the price of gold) encourage sound investments.

Over time, Ontario's economy will grow best if it promotes only those investments that don't need artificially cheap money to be profitable.

Eventually this housing boom will end and when it does, the people of Ontario will see their so called wealth disappear just as our U.S neighbours did.

Long term wealth will not created by subsidizing Ontario manufacturers with a low dollar, it will only be created by increasing productivity.

Productivity comes from allowing the free market to work, low taxes, low spending and sound money. Boring but effective.

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