The combination of an investment collapse and massive credit rating downgrades would cause a devastating economic crisis in Canada’s largest province.
Ontario is facing severe economic problems.
The insane cost of energy, the highest sub-national debt on earth, and people being crushed under an escalating tax burden are all a recipe for disaster.
The thing about debt, and what makes it so dangerous, is that it can seem sustainable until the very moment that it isn’t.
And when that moment hits, it’s too late.
That’s what happened in Greece, where their massive debt seemed like no problem at all and the economy was moving along decently, until confidence was lost and the economy fell into a horrendous crisis it still hasn’t emerged from.
It’s the same with investment. A slow outflow of investment can seem like a manageable problem, but it has a cumulative effect. As more and more businesses see investment leaving for more prosperous places and decide to leave themselves, the trickle can turn into a flood.
And that’s why the possibility of the socialist NDP gaining power in Ontario is so dangerous.
While the Ontario NDP claims to want change, they are actually proposing to take all of Kathleen Wynne’s worst policies and make them even worse.
If they won power, energy prices would skyrocket even more, debt levels would explode, and the tax burden would reach obscene levels.
That would cause investment to flee even faster, and it would result in severe credit rating downgrades.
In turn, that would lead to a debt-spiral, as the higher costs of servicing the debt would lead to more debt, thus leading to a higher cost of servicing that debt, and around and around. Because of that, more and more money would be taken up with debt payments, meaning that the NDP would actually end up cutting healthcare, education, infrastructure, and social services spending while massively raising taxes.
It would be devastating.
It would be a serious Economic Crisis for the people of Ontario, and for all Canadians considering the importance of Ontario to our national economy.
If the NDP wins, there’s a 99% chance that will happen.
What about that other 1% you may be wondering?
Well, it’s always possible that Justin Trudeau’s policies will have already pushed Canada into a recession/economic crisis before the NDP can do all their damage.
So, if the NDP wins there’s a 99% chance they will cause an Economic Crisis and a 1% chance Trudeau will already have caused the crisis. But even in that case, the NDP would make it worse.
The risk is huge. You can share this article to help warn everyone you know.
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