Canadian taxpayers will lose the most as governments try to foolishly subsidize our way to economic growth.
In my latest Exclusive Political Analysis Newsletter, I wrote about how the government is making a huge mistake by throwing gobs of taxpayer money at companies like Volkswagen.
Instead of cutting taxes outright and reducing the regulatory burden in order to incentivize investment and private sector expansion, the Liberals have simultaneously made Canada a worse place to invest in, while throwing tons of money at a few companies to try and get a political boost.
While bad economic policy is often good short-term political policy, reality cannot be evaded forever.
Having watched Volkswagen get $13 billion dollars, other companies want the same. And they’re playing hardball in order to get it.
As reported by BNN Bloomberg, Stellantis has now halted construction of a massive EV battery plant in Windsor, Ontario:
“Stellantis NV and battery maker LG Energy Solution have halted construction on an electric vehicle battery plant in Windsor, Ont., claiming the federal government has not met its commitments to the project.
A spokesperson for automaker Stellantis said the companies are implementing contingency plans because “the Canadian government has not delivered on what was agreed to.”
“Effective immediately, all construction related to the battery module production on the Windsor site has stopped,” Lou Ann Gosselin said in an email.”
The Mayor of Windsor is blaming the federal government, claiming they need to “follow through” in order for construction to resume. Of course, what he means by that is he wants more Canadian taxpayer dollars to be given to Stellantis.
Ontario Premier Doug Ford is echoing a similar line:
“He urged the federal government to finalize the details of its financial incentives with Stellantis, and “step up” as it did with the Volkswagen plant, a deal that includes federal subsidies worth up to $13 billion on top of a $700 million grant.
“We need the federal government to come to the table and show their support like they have all along,” he said. “I know Mayor Dilkens is quite concerned as well, and so am I.””
Dependence = Weakness
A truly effective company succeeds on its own merits through success in the free market. By contrast, a company dependent on government handouts (money taken from taxpayers without us having a choice) is a company that is choosing weakness.
The Volkswagen subsidy should never have happened, and it’s now predictably leading to a surging demand for more subsidies.
A society also becomes weak through dependence. When we believe we can only achieve economic growth by throwing taxpayer money at corporations, we are implicitly arguing that we aren’t strong enough to succeed independently.
Canada will never achieve our full potential if we remain locked into the subsidy-obsessed mindset. Companies in Canada should live or die based on their own merits, and we will emerge stronger from that competition.
Spencer Fernando
Photo – YouTube
