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What about REVENUE?
Why is it that no politicians talk about the REVENUE side of the deficit problem?
Instead of massive cuts, we should be looking at INCREASING REVENUE by getting Canadians back to work in manufacturing.
The only real, reliable, way to cut deficits is to cut imports and greatly increase the amount of manufacturing that is done in Canada.
Put people back to work. They will have income and will have to pay income tax!
There will be increased tax revenue, and therefore reduced deficits.
An easy and immediate action is to put in place the principle that all levels of government, and all quasi-governmental and public agencies, such as transportation commissions, MUST purchase Made-in-Canada only. If no manufacturer available, set up a manufacturing facility for present and future requirements.
Why can't politicians understand?
Why is the importance of manufacturing in Canada so difficult for all politicians of all parties to understand? Why aren't politicians talking about getting Canadians back to work in manufacturing? This issue is THE central issue in efforts to solve our economic and unemployment problems, yet no one is talking about it.
Getting Canadians back to work in manufacturing is not an option among various options. It is the ONLY way to cut deficits and save the economy.
Our trade deficit
Our trade deficit in manufactured goods has more than tripled since Harper took office in 2006. A truly dismal record.
Here is a deficit we can cut to our heart's content with only good results for our economy and our country.
Our trade deficit in manufactured goods was $92 billion in 2011. This is real money going out of our country, impoverishing our country.
Think what we could do with $92 billion kept in our economy and kept working in our economy, rather than sending that money out to foreign countries.
Sending $92 billion out to foreign countries is sheer waste and THIS IS WHERE WE SHOULD BE CUTTING!
Foreign military expenditures
If Prime Minister Harper wants to cut expenditures, the place to start is our military activity overseas. We should bring all our soldiers home from Afghanistan immediately. Despite the heroism, devotion, and sacrifice of our soldiers, it is not possible to accomplish anything in Afghanistan. Spending money on our Afghanistan effort is sheer waste. In recent months, there has been a small but steady incidence of NATO soldiers getting killed in Afghanistan. Every death is the loss of a good man and a disaster for a family that will never be forgotten. Why do politicians continue the pointless presence in Afghanistan? Why is it that politicians don't care about soldiers being killed for no reason?
Foreign non-military expenditures
Here is a simple and fair proposal for cutting our huge yearly expenditure to pay foreign countries to do our manufacturing for us, while our own workers stand in line at unemployment offices and welfare offices.
Look at our trade in manufactured goods with each foreign country. If Country X purchased $5 billion worth of manufactured goods from us in 2011, then we will allow import of manufactured goods from Country X in 2012 up to a total value of $5 billion.
Beyond that total value, no further imports from Country X will be allowed in 2012.
We demonstrate our belief in free trade, but it is BALANCED free trade, wherein the total value of manufactured goods going in each direction is about the same.
By applying this principle to each and every foreign country we deal with, we will eliminate a lethal economic hemorrhage, namely our huge yearly trade deficit ($92 billion in 2011). This action in itself will be a huge shot in the arm for the Canadian economy.
Keeping this money in Canada will make it unnecessary to allow foreign capital to come in. We will be able to finance new projects from our own resources.
In this policy of BALANCED free trade, our good trading partner the United States of America would be a special case. It appears that we are running a trade surplus with the United States. It needs to be checked whether crude oil is included in government figures. Crude oil and and other commodities such as raw logs are NOT manufactured goods.
The oil industry in Alberta employs many Canadians and this is great. However in terms of putting Canadians back to work all across Canada, resource exports do not solve our unemployment and deficit problems. Crude oil and other commodities should not be included in calculations of manufactured goods trade surplus or trade deficit.
Prime Minister Harper should think about Canada 50 years into the future. Maybe we will be very short of some of the commodities we are now rushing to virtually give away to China.
The problem at the top
Our Prime Minister doesn't accept ideas from other people. But his record of trade in manufactured goods demonstrates that he needs advice. His ministers and caucus have to force him to listen, if they don't want to go down with the ship.
Running around the world to international trade meetings is much more fun for our Prime Minister than dealing with dull old domestic manufacturing. But only through cutting imports and giving domestic manufacturing a chance to exist and grow will Harper be able to reduce deficits and improve the economy.
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