Comment 30755

By A Smith (anonymous) | Posted May 04, 2009 at 23:05:03

JonC, when this city was growing rapidly in the early part of this century, taxes and government were a tiny part of the economy. Furthermore, during that time period, people flocked here because of the many job opportunities this city's private sector provided. Today, Hamilton is a basket case economically and we enjoy the highest tax rates in the GTA.

The goal of any economy is to invest in new and better ways of doing things, thereby increasing the amount of real output and therefore real wages to workers. In order to do that, the capital base needs to expand and not shrink. However, when government invests capital, unlike businesses, it has ZERO way of knowing whether it is wasting capital or how much. Because it doesn't need to make profits, it has now way of knowing the return on invested capital. It is investing blindly.

If you believe that relying on guesswork to allocate capital is a wise thing to do, then you should become a politician. However, if you actually want Hamilton to be a creator of wealth and not a destroyer of wealth, then the only way to do that is by reducing the role of government. There is simply no other way.

If you support current tax rates, please explain to me why you think that investing blindly is a smart idea?

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