Conservative Party MP Pierre Poilievre explains how Canada escaped the recession

Conservative M.P. Pierre Poilevre (Nepean-Carleton), a member of the majority government in Canada, explains how Canada embraced the free entreprise system that America has rejected, and the results they got.

Here is the speech that went viral on Youtube:

And here is his article in the liberal Huffington Post.

Excerpt:

In a few days the “fiscal cliff” deadline will arrive and potentially bring massive automatic spending cuts and tax increases. Even if Congress and the President agree to avoid the cliff, the next crisis awaits. Treasury Secretary, Timothy Geithner, wrote the Senate this week to report that the “statutory debt limit will be reached on December 31, 2012,” which will require extraordinary measures to prevent a mass default. These measures will give the government 60 days before it runs out of money and Uncle Sam’s head smashes into the so-called “debt ceiling.”

It has long been said that when the U.S. sneezes, Canada catches a cold. So why have these debt-related ailments in the U.S. not afflicted the Canadian government?

The answer is that Canada has been practicing what the U.S. always preached: free markets, low taxes and minimal state interference. And it is working.

For example, Canada avoided the interventionist policies that led the U.S. to the sub-prime crisis.

In an attempt to expand home ownership, administrations from Carter to Bush Jr. forced banks to offer mortgages to people who would otherwise not qualify for them. Washington then ordered government-sponsored enterprises such as Freddie Mac and Fannie Mae to insure these “sub-prime” mortgages.

According to a 2010 Report on the U.S. Financial Crisis by the World Bank’s Development Research Group, Freddie and Fannie bought an estimated 47 per cent of these toxic mortgages. Harvard financial historian Niall Ferguson indicates that the amount of mortgage debt backed by these government-sponsored enterprises grew from $200-million in 1980 to $4-trillion in 2007.(1) The government pumped so much air into the housing bubble that it burst in 2008. The resulting financial crisis led to government bailouts of the banking sector.

Big government caused the economic crisis. So we are told the solution is more big government. Funny how the problem becomes the solution.

Because the Canadian government did not impose sub-prime mortgages on the country’s charter banks, we avoided the crisis and did not bailout a single financial institution. To keep it that way, Canada’s Finance Minister has ended all government-backed insurance of low-down payment and long-amortization mortgages. In other words, if you want to take on risky debt, taxpayers will not insure you.

Governments must lead by example when managing their own debt and spending. Low debt is the result of low spending. Federal government spending as a share of the overall economy is 15 per cent in Canada (2) and 24 per cent in the U.S. (3). The numbers are not merely the result of prodigious U.S. military spending, though that is certainly a factor. Non-military federal government spending is 14 per cent of Canada’s economy (4), and 18 per cent of America’s (5).

Take a look at some of these graphs from earlier in the year about the Canadian 2012 budget. (This is straight from their government’s web site - they have new transparency/anti=corruption measures now, so the citizens know everything that government does). When comparing the deficit and debt of Canada to the United States, always multiply the Canadian number by 10 to get a benchmark to compare. For example, Canadian GDP is 1.7 trillion, and the US GDP is 15 trillion.

Canada’s budget deficit is around 30 billion, but ours is 1.2 trillion:

Canada Federal Budget Deficit / Surplus 2012

If we were doing as well as Canada, our deficit would be about $300 billion. But we have run up about 6 trillion in debt over 4 years! Not only that, but Canada’s national debt is only $600 billion. If we multiple that by 10, we would expect ours about $6 trillion. And it was that – during the Bush Presidency. But then the Democrats took over the House and Senate in 2007 and everything went wrong and we packed trillions and trillions onto the debt, including about $6 trillion during Obama’s first term.

Canada’s Debt to GDP ratio is 34%:

Canada vs US Debt to GDP

But things are even worse for the United States, now. The current United States Debt to GDP is 105%, according to official U.S. government figures. We are due for yet another credit downgrade, and should see Greece-like levels of Debt to GDP during Obama’s second term. We are spending too much, and we aren’t going to be able to make up trillion dollar deficits even if we confiscate every penny that rich people earn. (And they won’t be daft enough to keep working as hard if we did that – they would move, and probably to Canada)

What is happening to us here in the United States is self-inflicted. We are – and have been – voting to impoverish ourselves and generations of children born and unborn, by punishing those who work hard and play by the rules, and rewarding those who don’t work and don’t play by the rules. It didn’t have to be this way. We could have elected a President who actually knew something about business and economics. Knowledge matters. We can’t just choose a President who gives us the “tingles” and then expect him to perform the actual duties of being President. Competence is more important than confidence. Substance is more important than style.

Filed under: News, Banks, Business, Canada, Capitalism, Community Reinvestment Act, Conservative Party, Conservative Party of Canada, Corporate Tax, Debt, Debt Crisis, Debt Limit, Debt to GDP, Deficit, Economic Growth, Economy, Federal Debt, Fiscal Cliff, Free Enterprise, Free Market, Free Market Capitalism, GDP, Housing Bubble, Inflation, Jobless, Joblessness, Jobs, Mortgage, Mortgage Lending, Obamacare, Pierre Polievre, Recession, Regulation, Spending, Surplus, Taxes, Unemployment

Louisiana governor Bobby Jindal unveils education reform plan

Here are the details on Bobby Jindal’s new education plan, from New Orleans Online Access.

Excerpt:

 Gov. Bobby Jindal on Tuesday outlined a far-reaching set of proposals aimed at improving education in Louisiana, including a state-wide voucher program for low-income students, an expansion of autonomous charter schools and steps to link a teachers’ classroom performance to their job protections and their compensation. The governor has been promising for months now to make education reform the centerpiece of his second-term agenda.

[...]The voucher program may prove the most controversial aspect of the plan. Jindal is proposing to help pay tuition at private and parochial schools for any child of a low-income family who attends a school that receives a letter grade of C, D or F.

More than 70 percent of Louisiana’s public schools would fall into that category, opening up districts across the state to competition for public funding from private institutions. Parents who opt out of those public schools would be able to take the public funding set aside for their child with them to pay for tuition.

Voucher opponents argue that offering private school tuition siphons money away from public education, but the governor is framing the idea as a way to put decision-making in the hands of parents.

Also toward that end, Jindal is proposing to fast-track the approval of new charter schools for proven charter operators. Charters are publicly funded but privately managed and typically overseen by nonprofit boards. They compete with traditional public schools in their area for students.

Jindal is also proposing to end regular annual pay increases for teachers based on years in the classroom, ban the use of seniority in all personnel decisions and weaken the power that local school boards have in hiring and firing decisions in favor of superintendents.

Teachers coming into the classroom for the first time would also see major changes under Jindal’s plan: districts would have greater flexibility to establish their own pay scales for new teachers and tenure would be set aside only for those who earn high ratings on evaluations five years in a row.

I thought it might be helpful to also post this quick introduction to the issue of school choice, from the Cato Institute.

I don’t agree with the Cato Institute on everything, but they’re right on this issue. The Heritage Foundation also has 3 small videos explaining school choice – with cartoons!

There’s an even longer video narrated by John Stossel that you can watch, that really explains the why school reform matters – and why it’s a conservative issue. Like the sex-selection abortion issue that I blogged about here before, this is an issue that conservatives need to seize on. Here, we can really let our compassionate side show by helping the poorest students, especially those in visible minorities, who simply cannot get a quality education in a public school monopoly that is not responsive to the needs of parents, or their children. This is an issue where we can win – the only losers are the educational bureaucrats and the teacher unions. But the kids are more important.

Filed under: News, Bobby Jindal, Cato Institute, Charter School, Choice, Choice and Competition, Competition, Consumer, Consumer-Driven, Consumer-Friendly, Education, Education Reform, Free Market, Free Market Capitalism, Freedom, Government, Government School, Homeschool, Homeschooling, Liberty, Louisiana, Monopolies, Monopoly, Private School, Public School, Quality, School Choice, Teacher Unions, Vouchers

Canada’s economic boom: low tariffs, low corporate tax and more oil drilling

Prime Minister Stephen Harper

From Canoe.

Excerpt:

Finance Minister Jim Flaherty announced Sunday the government will scrap 70 tariff items to save Canadian businesses about $32 million a year.

“This builds on our government’s commitment in Budget 2010 to make Canada a tariff-free zone for industrial manufacturers,” Flaherty said in a statement. “By lowering costs for these businesses, we are enhancing their ability to compete in domestic and foreign markets and helping them invest and create jobs here at home.”

Various sectors — including food processing, apparel, electrical equipment and furniture — will benefit from the move.

The Conservatives had previously eliminated the duty on imported machinery and equipment in an attempt to make Canada a tariff-free zone for industrial manufacturers by 2015.

The Tories say that since 2009 they have eliminated more than 1,800 tariff items and have provided more than $435 million in annual tariff relief to Canadian businesses.

According to the leftist CTV news, Canada also has lower corporate taxes.

Excerpt:

The study released Wednesday by KPMG International found Canada’s corporate tax rate has dropped by more than 16 per cent over the last 11 years.

Canadian companies are actually paying less than their American counterparts.

On average, Canadian companies pay 28 per cent of their income in federal and provincial tax, well below the 40 per cent paid by American companies.

But Canada’s corporate tax rate is higher than Europe’s 20 per cent and the OECD average of 26 per cent.

Canadian corporate taxes fell three per cent in 2011, from 31 per cent in 2010.

“Canada’s corporate tax rate falls around the middle of the pack among the OECD countries,” said Elio Luongo, KPMG’s Canadian Managing Partner for Tax.

“But Canada’s general corporate tax rate is anticipated to continue to fall in 2012, when the federal tax rate will be 15 per cent, versus 16.5 per cent in 2011.”

I’ve written before about how Democrats oppose the job creation that would occur if the United States developed energy in Alaska, the Gulf of Mexico and the Ohio shale. Additionally, Obama has also opposed building the Keystone XL pipeline, which would have created 20,000 jobs paid for by a Canadian company. But Canada has no problems with developing their own energy resources, because their government operates independently of the environmentalist left.

Excerpt:

As world leaders gather in South Africa to discuss climate change this week and next, Canada’s environment minister says he plans to defend Alberta’s oilsands and is willing to argue they are an “ethical” and reliable energy source.

Heading into the 17th Conference of the Parties meeting, Environment Minister Peter Kent says he will not sign on to any deals that mandate some countries reduce greenhouse gas emissions while others don’t — as his government argues was the case under the Kyoto Protocol. He is also unequivocal in his defence of northern Alberta’s bitumen production, a position he expects will be supported by Alberta Environment Minister Diana McQueen when she joins him at the end of the week.

“We still need to — and the industry needs to and our provincial partners need to — be aggressive in ensuring international friends and neighbours and customers recognize Alberta’s heavy oil is no different from heavy oil produced in any number of other countries which don’t receive nearly the negative attention or criticism,” he says. “It is a legitimate resource.”

Kent has made headlines in the last year by arguing that Alberta’s oil is “ethical.”

“We talk about this on quite a regular basis,” Kent says. “I think it’s important we correct where we find … misunderstanding, misinformation or deliberate ignorance to demonize, to criticize and to attempt … to create a boycott.”

In January, on his second day as environment minister, Kent referred to Alberta’s oilsands product as “ethical oil” during an interview with a newspaper reporter.

Reports immediately linked Kent’s comments to the title of conservative activist Ezra Levant’s recent book, Ethical Oil: The Case for Canada’s Oil Sands.

The book essentially compares Canada’s human rights record to those of other oil-producing countries, and argues Canada’s “ethical oil” is preferable to “conflict oil” produced in countries with poor human rights records, such as Sudan, Venezuela, Saudi Arabia or Iran. The argument removes environmental issues, such as greenhouse gas emissions, from the equation, though Levant notes Alberta’s data on environmental issues is more transparent than information shared by other countries.

So in total I’ve presented three reasons why the Canadian economy is booming, while the American economy is stuck in neutral. Obama opposes free trade, lower corporate taxes and domestic energy production. When you elect a socialist lawyer, you get a Greece/Spain economy. When you elect a capitalist economist, you get Canada’s booming economy, and consequently, a lower unemployment rate. Recall that our recession began exactly when we elected Nancy Pelosi to the House leadership and Harry Reid to the Senate leadership in 2007. Democrats wreck economies. There is no reason why America cannot be more prosperous than Canada, but we have to not elect an abject buffoons as our leaders.

Filed under: News, America, Barack Obama, Canada, Capitalism, Corporate Tax, Corporate Tax Rate, Corporate Taxes, Economic Growth, Economics, Economy, Energy, Environmentalist Lobby, Free Market Capitalism, Free Trade, Jobs, Lobbying, Oil, Special Interest Groups, Stephen Harper, Tariff, Unemployment, United States

Philosopher Ron Nash lectures on capitalism, morality and freedom

Watch the lecture. (H/T Luis)

Nash speaks from 0:06 to0:45. Then he takes questions.

His two favorite economists are… WALTER WILLIAMS and THOMAS SOWELL! Just like me!

Christianity isn’t something you do in church to have happy feelings, or to get along with your parents and friends. It’s a worldview. And the whole point of it is that is is true, and helps us to make sense of the world because it is true.

By the way, he even talks about how Jesus uses hyperbole to get people’s attention in the question and answer time. I blogged about that a while back because one of our Christian commenters told me that Jesus never uses hyperbole. (She is a Calvinist, so… you know… ). F.A. Hayek also comes up in the Q&A time. Hayek is my third favorite economist. I think all Christians should have favorite economists. I think we should think about how Christianity relates to every area, from science to history to philosophy to ethics to marriage and family. And to politics and economics, as with this lecture!

We should all have favorite scholars, just like non-Christians have favorite musicians and movie stars. Ron Nash is one of my favorite philosophers.

Who is Ron Nash?

I learned about economics by listening to all the lectures in this course taught by Dr. Nash. He presents a view of economics that is consistent with the laws of logic and the Bible. And this course is comprehensive. I’ve moved on from Dr. Nash’s course to read F. A. Hayek and Thomas Sowell, and then Walter Williams. And I found that Dr. Nash’s course was excellent preparation for these more advanced books.

Take a look at some of the topics:

• the role of the government in regulating commerce
• the meaning of justice
• capitalism and socialism
• interventionism vs free market capitalism
• introduction to economics
• marxism
• wealth and poverty
• liberation theology and the religious left
• judicial activism vs legal positivism
• pollution
• public education

You can grab the lectures here.

A little blurb about Dr. Nash

Nash taught theology and philosophy for four decades at three schools. He was chairman of the department of philosophy and religion and director of graduate studies in humanities at Western Kentucky University, where he was on faculty from 1964-91. He was a professor at Reformed Theological Seminary from 1991-2002 and at Southern Baptist Theological Seminary from 1998-2005.

Nash wrote more than 35 books on philosophy, theology and apologetics, including “Faith & Reason: Searching for a Rational Faith,” “Life’s Ultimate Questions” and “Is Jesus the Only Savior?” Nash received his Ph.D. from Syracuse University; his master’s degree from Brown University; and his undergraduate degree from Barrington College.

From this Baptist Press article.

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• Fiscal and social conservatives unite in new free e-book “Indivisible”
• First Things reviews Jay Richards’ Money, Greed and God
• Cato Institute talks with Jay Richards about Christianity and capitalism
• Christian professor of economics discusses capitalism, socialism and the Bible
• How I got interested in the relationship between Christianity and economics
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• Ron Nash explains what should Christians believe about social justice

Filed under: Mentoring, Atheism, Audio, Capitalism, Christian Left, Christianity, Christianity and Economics, Communism, Econimcs and Christianity, Economics, Emergent Church, Environmentalism, F. A. Hayek, Free Market, Free Market Capitalism, Hayek, Interventionism, Interview, Jim Wallis, Justice, Learn, Lecture, Left, Liberation Theology, Ludwig Von Mises, Marxism, Peace, Pollution, Poverty, Public Education, Redistribution of Wealth, Religious Left, Ron Nash, Ron Sider, Ronald H. Nash, Social Justice, Social Programs, Socialism, Socialist, Sojourners, Thomas Sowell, Tom Sowell, Tutorial, Wealth, Wealth Redistribution

Marco Rubio’s finest speech yet… at the Reagan Forum

Greatness. He is everything that America has always been. (45 minutes)

Excerpt from the transcript: (scroll down)

And so, if defining the proper role of government was one of the central issues of the Reagan era, it remains that now. The truth is that people are going around saying that, well, we’re worried about – let me just add something to this because I think this is an important forum for candor.

I know that it is popular in my party to blame the president, the current president. But the truth is the only thing this president has done is accelerate policies that were already in place and were doomed to fail. All he is doing through his policies is making the day of reckoning come faster, but it was coming nonetheless.

What we have now is not sustainable. The role of government and the role that government plays now in America cannot be sustained the way it is. Now some are worried about how it has to change, we have to change it. The good news is it is going to change. It has to change. That’s not the issue.

The issue is not whether the role that government now plays in America will change. The question is how will it change. Will it change because we make the changes necessary? Or, will it change because our creditors force us to make these changes?

And over the next few moments I hope to advocate to you –- I don’t think that I have to given the make up of the crowd –- but I hope to advocate to you that, in fact, what we have before us is a golden opportunity afforded to few Americans.

We have the opportunity –- within our lifetime –- to actually craft a proper role for government in our nation that will allow us to come closer than any Americans have ever come to our collective vision of a nation where both prosperity and compassion exist side-by-side.

To do that, we must begin by embracing certain principles that are absolutely true. Number one: the free enterprise system does not create poverty. The free enterprise system does not leave people behind.

People are poor and people are left behind because they do not have access to the free enterprise system because something in their lives or in their community has denied them access to the free enterprise system. All over the world this truism is expressing itself every single day. Every nation on the Earth that embraces market economics and the free enterprise system is pulling millions of its people out of poverty. The free enterprise system creates prosperity, not denies it.

The second truism that we must understand is that poverty does not create our social problems, our social problems create our poverty. Let me give you an example. All across this country, at this very moment, there are children who are born into and are living with five strikes against them, already, through no fault of their own.

They’re born into substandard housing in dangerous neighborhoods, to broken families, being raised by their grandmothers because they never knew their father and their mom is either working two jobs to make ends meet or just not home. These kids are going to struggle to succeed unless something dramatic happens in their life.

These truisms are important because they lead the public policies that define the proper role of government. On the prosperity side, the number one objective of our economic policy, in fact the singular objective of our economic policy from a government perspective is simple — it’s growth. It’s not distribution of wealth; it’s not picking winners and losers.

The goal of our public policy should be growth. Growth in our economy, the creation of jobs and of opportunity, of equality of opportunity through our governmental policies.

And the most gripping part of the speech:

To me, this is extremely special, and I’ll tell you why. During the ’80s, politically especially, there were two people that deeply influenced me. One clearly was Ronald Reagan, the other was my grandfather, who lived with us most of the time in our home.

We lived part of our life, especially the key years, ’80-’84, in Las Vegas, Nev. And my grandfather loved to sit on the porch of our home and smoke cigars. He was Cuban. Three cigars a day, he lived to be 84. This is not an advertisement for cigar smoking, I’m just saying to you that …

He loved to talk about politics. My grandfather was born in 1899. He was born to an agricultural family in Cuba. He was stricken with polio when he was a very young man, he couldn’t work the fields, so they sent him to school. He was the only member of his family that could read. And because he could read, he got a job at the local cigar rolling factory.

They didn’t have radio or television, so they would hire someone to sit at the front of the cigar factory and read to the workers while they worked. So, the first thing he would read every day, of course, was the daily newspaper. Then he would read some novel to entertain them.

And then, when he was done reading things he actually went out and rolled the cigars because he needed the extra money. But through all of those years of reading, he became extremely knowledgeable about history, not to mention all the classics.

He loved to talk about history. My grandfather loved being Cuban. He loved being from Cuba. He never would have left Cuba if he didn’t have to. But he knew America was special. He knew that without America, Cuba would still be a Spanish colony. He knew that without America, the Nazis and Imperial Japan would have won World War II. When he was born in 1899 there weren’t even airplanes. By the time I was born, an American had walked on the surface of the moon.

And he knew something else. He knew that he had lost his country. And that the only thing from preventing other people in the world from losing theirs to communism was this country – this nation.

It is easy for us who are born here –- like me –- and so many of you, to take for granted how special and unique this place is. But when you come from somewhere else, when what you always knew and loved, you lost, you don’t have that luxury.

My grandfather didn’t know America was exceptional because he read about it in a book. He knew about it because he lived it and saw it with his eyes. That powerful lesson is the story of Ronald Reagan’s presidency. It’s our legacy as a people. And it’s who we have a chance to be again. And I think that’s important for all of us because being an American is not just a blessing, it’s a responsibility.

As we were commanded to do long ago, “Let your light shine before men” …

[PAUSE - he is overcome by emotion]

…“that they may see your good works and glorify your Father in heaven.”

Well, as we gather here today in this place, that pays homage and tribute to the greatest American of the twentieth century, we are reminded that for him and for our nation, being a light to the world, that’s not just our common history, it remains our common destiny.

I cried at the part in bold above.

Here’s the verse he cited – Matthew 5:16 – in context: [NASB]

¹³ “You are the salt of the earth; but if the salt has become tasteless, how can it be made salty again? It is no longer good for anything, except to be thrown out and trampled under foot by men.

¹⁴ “You are the light of the world. A city set on a hill cannot be hidden;

¹⁵ nor does anyone light a lamp and put it under a basket, but on the lampstand, and it gives light to all who are in the house.

¹⁶ Let your light shine before men in such a way that they may see your good works, and glorify your Father who is in heaven.

I notice that he cites the NASB, which is my favorite translation – the translation closest to the original Greek.

On my Facebook page, I have Matthew 5:13, which is the verse that comforts me when things look bad in my life – when my plans haven’t worked out the way I hoped they would. Things look bad for us right now as a nation. Maybe we need to reconsider these words.

This speech is being well-received everywhere. Permit me just one reaction from the UK Telegraph, which is still punch-drunk from socialism-induced rioting caused by the anti-marriage, anti-family, anti-father policies of the secular left Labour Party.

Excerpt:

Two of the brightest rising young stars in American conservatism today are Paul Ryan and Marco Rubio. Neither are running for president in 2012, but both will be strong contenders for the vice presidential running mate slot, whoever wins the Republican nomination. And I wouldn’t be surprised to see Ryan or Rubio eventually sitting in the Oval Office itself at some stage in the future. After all, Congressman Ryan of Wisconsin is only 41, and Senator Rubio of Florida is just 40; they have decades of public life ahead of them. They are both deeply principled politicians in the Reagan mould who grew up during the late Cold War years, and share a profound belief in American exceptionalism and the need for the United States to maintain its position as the world’s leading power.

A few weeks ago, I wrote about Congressman’s Ryan’s superb speech on foreign policy to the Alexander Hamilton Society in Washington, remarks which outlined in stark terms the challenges the United States faces if it is to avoid decline. Ryan’s address, which I attended, was probably one of the most important statements by a US politician on American leadership this year.

Senator Rubio’s speech yesterday at the Reagan Presidential Library in the presence of Nancy Reagan, was another key address by a Member of Congress that deserves to be widely read, both at home and abroad. Like Ryan, Rubio offers a powerful rejection of the Big Government approach that has crippled America’s economy, and outlines a firm defence of the free market, championed by Ronald Reagan.

There is something very different and special about America. And Marco Rubio reminds us all what it is in this speech. A speech heard ’round the world! A reminder of our principles – of our role – and of our responsibility to the world.

On a side note, Marco Rubio also rescued Nancy Reagan from a fall by alertly grabbing her arm when she slipped.

Filed under: News, America, Beacon, Civil Society, Compassion, Conservative, Cuba, Debt, Deficit, Family, Free Market Capitalism, Freedom, Government, Great Communicator, Jobs, Judicial Restraint, Liberal, Liberty, Marco Rubio, Marriage, National Debt, Private Property, Prosperity, Reagan Forum, Republican, Ronald Reagan, Shining City, Speech, Spending, Taxes, The Rule of Law