Government officials face very different incentives than people in the private sector.
private sector investment
Capital is mobile and will flow to jurisdictions with sound regulatory regimes and competitive fiscal policies.
Growth of U.S. government spending and borrowing might crowd out private-sector investment in the U.S. from Canada.
One of the more persistent myths about prosperity is that it results purely from luck. Often, commentators credit the mere presence of oil, gas, potash and other natural resources for Western Canada’s recent (and presently fading) boom in investment, jobs and government revenues.
When Ontario Finance Minister Charles Sousa announced a budget update and a revised, lower forecast for provincial economic growth, it was yet another piece of evidence that Ontario’s economy is sluggish. But Ontario’s problems run deeper than just one fiscal update from one finance minister.