As Ontario continues to undermine its economic future with growing debt, the province does not receive near the critical scrutiny it should from the media and financial markets. In reading CIBC World Markets latest Economic Insight, its not hard to understand why.
When pitching new programs, politicians love their 'dedicated' funds: highway trust funds, housing trust funds, environmental protection funds, wildlife-protection funds, and so on. Most recently, under AB 32, California politicians partly sold the program on the basis of all the good that could be done with Greenhouse Gas Reduction Funds raised through the state's cap-and-trade program.
Kathleen Wynne celebrated this week after winning the Ontario Liberal leadership and the premiers job. But now comes the hard part, finding a way to return Ontarios finances to a stable, sustainable path.
Part of the challenge facing Ms. Wynne is Ontarians indifference to the provinces deficits and debt. If the citizens of the province arent concerned about the over-spending, the deficits, and the accumulated debt that emerges from such spending, then we shouldnt be surprized to see politicians ducking hard decisions.