Friday, September 08, 2006

I'll be guesting on the Murray Wood Show just after the news at the bottom of the hour at around 12:30 to talk about crown corporations and government debt. Listen live.

13 comments:

Chad Moats said...

Two questions:

How would you replace the revenue from the crowns and cut taxes?

What is the Debt to GDP ratio and is it above or below recommended levels ?

and a comment:

Your final analysis of why we should sell the crowns came down to an appeal to emotion ("We should give it a try" and "Everyone else is doing it"), quite desperate in my opinion.

David MacLean said...

Income from government enterprises (all government enterprises) amounted to $718 million last year. Assuming we will sell off all crowns (which we won't) we can expect to replace that revenue with tax revenue, in whole or part.

According the Provincial Auditor the provincial debt is too high for a million people. The net debt as a percentage of GDP is 18.

The best argument for privatization is economic development. the fact is that government involvement in the economy slows economic growth -- and that's exactly what has happened in Saskatchewan.

The simple fact is we are desperate for change in Saskatchewan. We are falling into a demographic abyss.

Chad Moats said...

If government intervention slows economic growth, Why were the largest growth periods in recent history during long periods of heavy government investment and regulation ?

Is 18% of GDP not below the recommended 20% ?

Chad Moats said...

Oh and this,
"Income from government enterprises (all government enterprises) amounted to $718 million last year. Assuming we will sell off all crowns (which we won't) we can expect to replace that revenue with tax revenue, in whole or part. "
So how would you replace it with taxes and cut taxes at the same time ?
$719 M in revenue not from taxes plus lower rates then anywhere, else. I can't believe that the CTF would rather sell off money making enterprises then lower taxes.
Would Warren Buffet sell off a $700 M cash cow ?

David MacLean said...

The provincial auditor thinks it's high, and we agree. Remember, our GDP is high due to high oil and gas prices. Prices drop down in the 20 dollar range, the GDP drops by double digits.

Modernization caused economic expansion. People needed power, telephone, water.

We need to do both -- cut taxes and build a market economy. You can't have one without the other.

Not sure why a candidate for city council would spend his time making these arguments. I'm not going to change your mind obviously, and you won't change mine.

Chad Moats said...

Dave,
A city council candidate likes to prove your ideological ideas wrong.

We won't see $20/Bbl, ever again. (OPEC will insure $50 is the bottom ).

Modernization still is taking place and much more rapidly. Why should government not enable it to expand faster and create greater wealth ?

I beg to differ on the low taxes= market economy. Some of the best markets economies have high taxes.

You still didn't answer:

So how would you replace it with taxes and cut taxes at the same time ?

Would Warren Buffet sell off a $700 M cash cow ?

R.S. Porter said...

We won't see $20/Bbl, ever again. (OPEC will insure $50 is the bottom ).

As things stand now maybe, but to predict the future is a foolish prospect.

I beg to differ on the low taxes= market economy. Some of the best markets economies have high taxes.

What is your idea of a "market" then?

Would Warren Buffet sell off a $700 M cash cow ?

Maybe not, but he would sit around and use the death tax to steal businesses at rock bottom prices.

David MacLean said...

It's clear what we would get with Chad Moats on council.

A city council candidate likes to prove your ideological ideas wrong.

No proof has been provided.

Chad Moats said...

and you refuse to answer the questions. My proof is that you wouldn't be able to replace the $700 million that isn't coming from taxes, so either you cut services or raise taxes.
Which is it ?
What benefit would be derived from privatizing any of the major crowns, for ordinary people ?
Lower rates or Lower Wages ?
A savings of around $35 M/year vs. $700 M+ in revenue/ year, is that a smart trade off ?
Would that be an intelligent business choice for the citizens of Saskatchewan ?
The fact that you choose not to answer these questions proves you wrong.

David MacLean said...

Chad, there just isn't enough time in the day. Read Friedman's capitalism and freedom and get back to me.

R.S. Porter said...

My proof is that you wouldn't be able to replace the $700 million that isn't coming from taxes, so either you cut services or raise taxes.

Cut services. Cut services. Cut services.

What benefit would be derived from privatizing any of the major crowns, for ordinary people?

You naturally assume that a private business would not generate revenue anywhere near current levels. That is fallacious.

The government should not manipulate and undercut the market. Crown corporations are not a smart trade off. It is sad that you want the province to be #1 employer.

Chad Moats said...

You can't answer it , can you.
Figures.

Calicos said...

Is that $718 million in revenue or profit? I'm sure all here are aware of the difference.

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