Comment 62686

By A Smith (anonymous) | Posted April 26, 2011 at 01:43:50 in reply to Comment 62679

NDP and tax cuts, strange but true.

Perhaps even more important than tax rates, is the inflation tax we have all been paying recently. Since 2000, the Canadian dollar has lost 75% of its value against gold, a traditional store of value. In fact, if you price oil in grams of gold, the current price of oil is 2 grams, around the historical average.

By allowing the Bank of Canada to devalue the Canadian dollar, the result has been a doubling in the cost of homes, record household debt levels and doubling in the price of gas. Unfortunately, personal incomes have only climbed 23% in that same time period.

From 2001 to 2006, when gold was relatively constant, Ontario's GDP grew an average of 4.3%. Since 2006, as gold has risen from around $500 an ounce to $1,453 an ounce (CDN dollars), Ontario's GDP has only grown by an average of only 2.06% and that's in nominal terms, not even adjusting for higher home and gas prices.

If you want to reduce poverty and grow the economy, vote for the party that embraces the free market. Sound money, low taxes, limited safety net (for those truly in need) and consumer choice (private health care, school vouchers).

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