Post by jd on Mar 31, 2013 12:46:43 GMT -4
Several
public figures in recent weeks have painted a bleak portrait of Nova Scotia’s
future; one intentionally the other not. The first was by MP Scott Brison in a
speech to the Atlantic Institute for Market Studies. He said our government size
and debt is starting to overwhelm our ability to pay for it all. Simply put
government is too large.
The
other comment was Finance Minister Maureen MacDonald’s stated preference for
running deficits rather than reduce government. Despite our spending having
almost doubled in the last decade more spending is the priority and debt is not
a concern. In fact government no longer feels it can ever pay off the debt as stated
by former Finance Minister Graham Steel. Debt would appear an abstraction. But
it is not. Currently our interest expense on the debt is roughly the size of
Community Services, the third largest item
in the budget. Interest rates are at historic lows and are forecasted to
increase, potentially our debt costs could soar. Further borrowing will also
force up rates as our debt is downgraded like distressed economies in Europe.<o:p></o:p>
So if we
are to increase government spending and deficits are not an option then taxes
must increase. However we are overwhelmed
by taxation; Corporate income taxes are already the highest in the country.
Nova Scotia ties with PEI for the highest sales-tax rate (15 per cent);
income-tax rates are second only to Quebec’s. There are many hidden taxes which
are near to or at the maximum in Canada. <o:p></o:p>
The last
option then is to have a large influx of people into Nova Scotia willing to take
on the debt load and pay much higher taxes than the rest of Canada. However population
actually dropped this past year and serious depopulation is forecast to start
in a few years. The demographics changes are even worse. Families and young people
have been ‘going down the road’ for decades. In fact they are leaving so fast that
there are three thousand fewer children starting school every year. <o:p></o:p>
So we
are at the limits of debt and taxes and depopulation is accelerating. Our
current spending levels are unsustainable.<o:p></o:p>
So what has
been and is the political response? More spending. Our current political leadership
as has all leadership going back 50 years is inherently incapable of changing
course; they must spend to get re-elected. And since the legislature is
controlled by the leadership it can’t stop them. This is not an attack on
specific people or parties rather this is a analysis of the status-quo which
keeps us locked in this downward spiral. <o:p></o:p>
What
will happen without change?<o:p></o:p>
We will become
an empty province made up of abandoned buildings and farms, closed legion
halls, derelict churches, shuttered businesses except for used clothing and
dollar stores, populated by failing elder care residences. A place where towns have larger cemeteries than
population, a place whole families depart from. A failed
province.<o:p></o:p>
<o:p></o:p>
We can break the
cycle! With proper long term vision Nova Scotians are capable of creating their
own prosperity. We need a
leadership with the will to look beyond the next election and too have faith in
the private endeavors of individual Nova Scotians. We know we are among the
best in the world. We just need strength and vision.<o:p></o:p>
