Comment 123078

By ASmith (registered) | Posted June 20, 2018 at 04:49:25

If you are over 18 and believe that politicians don't lie, I feel bad for you.

That being said, how does giving money to politicians to spend, no matter how nice they sound, improve Ontario's productivity?

In the free market, the goal of investing is to make profits. In govt, the goal of investing is to get re-elected.

The Ontario Liberals wasted a billion dollars, not because they were stupid, but because they were smart. The incentive structure we gave them made it worth their while to write off this huge amount.

Incentives matter. Imagine if McGuinty/Wynne were given monetary bonuses if they could verifiably improve students test scores, while spending as little money as possible. Same for health care, or any other govt program.

How would their decision making change?

I guarantee you that if the provincial cabinet could be financially rewarded for making smart, money saving investment decisions, they would do a far better job with out tax dollars than they do today.

However, since we don't have that pay structure in place, the best we can do is to leave the money where it does exist, the private sector.

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