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Originally Posted by iggy_oi
What is your alternative solution? Wait it out? Even if that means until this government is potentially out of power? And then just hope that the wild rose or PCs implement it when(if?) the economy recovers?
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Quote:
Originally Posted by IliketoPuck
I'm not going to get into this with you any further than this post. It's quite clear that there is gap in understanding of how business works.
A key point you miss continually with your "well what’s the difference between making $100 of profit and making $60 of profit, he's still making money" is this:
Capital (money) is fungible. It moves to where it can receive the highest return. It does not care about the people or lives it affects when it moves. Return is all that matters.
To attract capital, you need to create a jurisdiction that provides the proper incentives for investment. I.e. "the Alberta Advantage" which used to mean a business friendly investment environment. It is no accident that so many corporate head offices are located in Calgary/Edmonton. They are here as a direct result of policies created by previous governments to attract them.
Further, an executive of a public company owes a fiduciary duty to shareholders to optimize capital allocation. If the choice is $100 of profit in one jurisdiction and $60 of profit in the other for the same amount of investment and risk, the higher return is chosen. Every. Single. Time. Otherwise you are out of a job.
This doesn't apply only to public companies, either. It is how business works.
An operation like Don's exists to maximize profit. He isn't in business out of the goodness of his heart. If he can no longer make the profits he needs to remain in Alberta, he will close shop and choose to make more money in a different jurisdiction. The cascading impact of that is staggering; his direct employees are out of work, his suppliers no longer have a customer, his cleaning service loses a customer, etc. etc. etc. etc.
You act like a minimal increase in costs is no big deal. What you fail to realize is that every single policy change (even if it is initially small) has an incremental and multiplicative effect on the broader economy.
The NDP government has made massive mistake after massive mistake by universally reducing the competitiveness of Alberta to attract capital in the midst of the worst downturn on record. Their policy decisions are inexcusable.
Before you go to the predictable "well the PC's left us in this mess" response, save the time. It is a tired and uninspired argument. The NDP need to stand on their own merits at this point.
Their decisions continue to reflect a stance of ideology over practicality. They refuse to reduce expenses, and are determined to tax their way out of the worst recession on record. You seriously can't make this level of incompetence up.
The NDP have the ability to choose what policy they implement. They can choose to take actions that assist businesses to weather the downturn, thereby assisting them in providing employment to everyday Albertans. Instead, they have chosen poorly and exacerbated the worst recession on record.
Good governance is knowing when the time is right to implement changes in the system, and having the humility to admit when you have erred.
The NDP do not have the ability to divorce themselves from party ideology, nor do they have the requisite experience or the business wherewithal to effectively govern this province.
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That pretty much sums 'er up.
Its not 'waiting it out' like they're sitting on their hands doing nothing.
Do what you can with what you have. Make the situation better as well as you can.
We need our Politicians to take the Hippocratic Oath.
"First, Do No Harm."