Excerpts from OPSEU.ORG
At a Commission hearing on January 19, economist Jim Standford testified that the provincial government can do more to stimulate the provincial economy by fostering job creation than it can by taking an axe to public services.
These measures only prolong recessionary conditions,” Stanford told Commission chair Judy Wasylycia-Leis. “Our first priority must be to end the recession if we hope to achieve fiscal health.”
Stanford presented the Commission with a set of data that demonstrated how the Ontario provincial budget can withstand further injections of spending without slipping into a recession.
He said the provincial government’s spending is now the weakest sector of growth. Without further growth in public spending, Ontario’s GDP might actually tip into the negative category.
Stanford also expressed skepticism that corporate tax cuts are a means to moving Ontario into positive economic growth.
“Corporate tax credits are a terrible way to stimulate the economy,” he told the Commission. “For corporations, they’re a way to pay off debt; provide dividends to shareholders, and a way to achieve further cash accumulation.
“The evidence shows that corporate tax cuts do little to stimulate the economy or create jobs.”
Wasylycia-Leis asked Stanford whether there might be a way to change people’s attitudes toward tax increases as a means of providing funds for public services. “Taxes needn’t be a four-letter word,” she added.
Stanford replied, “there are lots of openings to push that conversation. It’s a matter of demonstrating how public services are a valued part of the economy and economy growth.”
He said the government’s austerity agenda is doomed to fail “because people can witness for themselves how austerity measures have failed elsewhere in places like Greece, Spain and Ireland.”
He concluded by observing “change can come about in our society and public services, paid for through fair taxes, can be a bridge to narrowing inequality.”
Earlier in the day, Sara Labelle, an OPSEU regional executive member who also leads her union’s sector representing 36,000 members inside hospitals, told the Commission that Ontario must do a better job at addressing the social determinants of health care.
She also cautioned Wasylycia-Leis to be wary of any recommendations coming forward from the Drummond Commission on the reform of public services that deal with the health care sector. She described Drummond as an “alarmist” who has a track record of questioning the value of universal public health care.
The Oshawa public hearing also heard from Denise Davis, representing almost 7,000 LCBO workers in the province, who said privatization of the crown-owned agency must remain off the table in any discussion on the reform of public services or agencies.
The full article is available here
