Skip to content
Monday, November 11, 2019

a news service

Government/industry Cooperation

Code word for bizarre economic development practice nearly universal among Canadian governments: 1.) Governments sign into cooperative ventures large, financially plump corporations (preferably foreign-owned or controlled), pump vast numbers of dollars into goofy joint ventures in the form of direct grants, tax credits or non-secured loans. 2.) While the money input is near its peak, the corporations whine loudly about bureaucratic interference, high taxation, and Big Government. 3.)When and if the joint venture becomes profitable, the politicians privatize it, write off the public investment and offer the participating corporations further asset write-downs, tax credits and further grants until the corporation decides to close the in-country manufacturing facilities and move them to the U.S. or Mexico. 4.) If (as is usually the case) the joint venture fails, the loans are written off, the tax grants forgiven, and the government leaders make mea culpa confessions about the dangers of socialism. Cf. The Bricklin car or growing cucumbers in Newfoundland.

Post tags:
Avatar

admin

More from admin: