One of the crime scenes

Sunday, April 04, 2010

Canada Takes

Canadians (on left) Going for the Gold

As my regular readers might already know, I tend to be an early riser and begin my day hearing the early news. Even though I listen to the left wing, latte sipping CBC Mother Corp, I still wind up starting many days in a state of rage, before my feet even hit the floor. Like the other day, when the first thing I heard was that the mininum wage had been raised AGAIN in Ontario (to $10.25hr) while BC, arguably the most expensive jurisdiction to live in, remains stuck with the same minimum wage as prevailed in the last century AND enjoys a sub-minimum for those who are starting their slavery. Of course these new entrants, who hopefully can live at home, instead of on the street, and walk to work, will be rewarded with the munificent sum of $8.00hr, once they've put in 500 hours, or maybe they will be replaced with other new entrants, needing that first 500 hours.

But then the morning business report came on just before 6:00am as it does every weekday, and the headline was "Canada Claims Silver!" The fact that Canada beat out every country other than Mexico as a "cheap" place to do business was being hawked as a GOOD NEWS STORY.

Canada already among world's most competitive countries, KPMG says

OTTAWA — Canada is among the most competitive countries in the world to conduct business in, placing second in a group of 10 countries from Asia, Europe and North America, a new study says.

KPMG says Canada enjoys a five per cent advantage over its closest trading partner, the United States, and ranks only behind Mexico among the countries measured.

Yep, low wages, low taxes (for business), cheap (often subsidized) resources, a lax (and thus inexpensive) evironmental regulatory regime (soon to be even more relaxed thanks to Big Steve in Ottawa) make Canada the destination of choice for multinationals to exploit at minimal cost. Oh yeah, did I mention, that these wetbacks of the north are also comparatively well educated and their medical needs are looked after, thus saving corporations from the indignity of bearing those costs like they might have to in say the United States of much higher costs? Of course Vancouver is a nice place for the branch plant managers who can afford to keep a little mansion in West Van or a condo on False Creek, so they can occasionally supervise the worker bees in scenic luxury.

Then Saturday, I offended myself by actually purchasing a dead tree edition of the Vancoouver Stun and their main editorial thought that the KPMG study results were a GREAT NEWS story.

The best place in the world for business? Right here

KPMG noted that over the last decade Canada's tax status has moved from a high-tax jurisdiction to the most favourable tax regime in the G7.

According to the KPMG study, Canada has the lowest effective corporate income tax rate for manufacturing operations and among the lowest for corporate and information technology services. Canada also offers competitive rates on electricity and natural gas and facility rentals. Labour costs are lowest in Mexico, of course, but Canada ranks among the lowest of the industrialized nations......snip

Of course since the Vancouver Stun is still part of the not yet quite bankrupt Assperson Empire a story like this couldn't go by without a shot at both the Liberal Party of Canada AND the NDP, as in:
How odd then for the federal Liberal Party to propose at its convention in Montreal this week suspending corporate tax cuts as a major plank of its economic platform. Has the NDP's long-defunct Waffle faction found a new home?

The British news service Reuters, featured Mexico in their coverage of this story, and took pride that the UK had passed the US in the race for the cellar.
TORONTO (Reuters) - Mexico retained its top ranking as the most affordable place to do business, while the United States dropped to eighth, according to KPMG's report about cost-effective competition among 10 countries.

I guess the KPMG report IS good news, for the BC liaRs, their fat cat friends and their offshore corporate pig buddies, but somehow, I don't think it is in the interests of most Canadians to be runner-up in a contest that Mexico wins. Of course then I think about the child poverty in BC in particular, the widening gap between rich and poor and the increasing number of people without a roof over their heads and I guess it makes sense. Then I think of the ongoing gangland killings and drug wars and apparent government corruption in Victoria, and hey, with a little effort, maybe British Columbia can surpass Mexico and become a genuine third world jurisdiction. Now we have a target, the next time KPMG does this study, let's go BC, Go Canada Go! Let's leave Mexico in our dust!


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