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Originally Posted by Iowa_Flames_Fan
Fair enough--I agree that bailing out the auto industry immediately is a little shortsighted. However, that's not the only form "stimulus" can take. I'd personally like to see a stimulus take two forms: modest tax cuts, and some spending--with the latter focused on infrastructure programs that create jobs, and some enhanced entitlements for the poorest Canadians to stimulate consumer spending. In other words, the objective of a stimulus should be to increase employment and put more money in the pockets of consumers.
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Didn't the Conservatives already promise a bunch of infrastructure spending? The municpalities are basically waiting for the disbursement of these dollars. And we don't know about tax cuts until the budget comes along, but I would think that the recommendations of the provinces and the G20 would incorporate those.
Quote:
Originally Posted by Iowa_Flames_Fan
I actually don't favour bailing out the auto industry unless there are massive strings attached--that is--the money goes to preferred shares, or is a loan--and is contingent on development of energy efficient vehicles, and based on a sound fiscal plan demonstrating that the manufacturers are solvent through this crisis and in the future--and will keep their factories in Canada open. Otherwise, there's no percentage in a bailout. Auto companies in North America have themselves to blame for their woes in large part--they need to show that they have changed their strategic outlook before they get a single cent of government money in my view.
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The factories in Canada are probably going to go away no matter how much money Canada gives the auto makers, especially if they don't get the bailouts out of the American's. So why would we even consider it until we hear from Obama when he takes over. These are not Canadian companies, that are beholden to hold jobs and production in this country when they are losing jobs and factories in the states.
Combined with the strings attached, the CAW union has already strongly stated that they will not negotiate salaries and benefits down in Canada, which is a major part of their cost issues, so until the CAW comes to the table, there is no point in giving money to these organizations.
We could practically throw money at ford of Canada, or GM of Canada and basically watch them shut down if the American's don't rescue them.
I have no trouble throwing dollars at mining and forestry jobs, however the global market has dramatically shrunk so its not like throwing money at them is going to increase sales or profitabilty in any way, it will just basically increase stagnant inventories.