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Wednesday, December 22, 2004
Economic Growth on PEI
For years the government of Prince Edward Island has attempted to encourage economic growth in the province by building facilities and/or giving money to businesses so that they'll move their operations to PEI. This policy has only wasted the taxpayer's money, as most companies bribed into coming to the province only stay until the government money runs out, usually moving to another province after a few years.
For the longest time I couldn't get over the stupidity of such a system, but it seemed most of the Atlantic provinces were doing it to one another, with the taxpayer losing out in the end. But the government of PEI may have finally come to their senses. They have decided to reduce the risk to the taxpayer by rewarding established and successful businesses with tax breaks and incentives, instead of paying them in advance.
Instead of paying cold hard cash right out of the treasury, as before, the province decided to give up some future tax revenue instead. This way only successful businesses get rewarded; government money will not be sprinkled on just any dumbass idea now. Makes sense, don't you think?
My only question is, why did it take some long for the government to realize that it made sense to reward successful businesses only, instead of them all? A government can't decide for us whether a business will succeed or not, the marketplace dictates that, so PEI's decision to stand back and let the people decide looks like a good one.
crossposted to canadiancomment
Posted by Bob Matheson on December 22, 2004 | Permalink
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Comments
Is PEI going to cut spending to balance the lack of revenues? Or are they counting on receiving extra equalization payments from AB and ON to make it up?
Posted by: Justzumgai | 2004-12-23 10:10:01 AM
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