Podcast. Talking corporate welfare with Franco Terrazzano of the Canadian Taxpayer’s Federation

Corporate welfare is an insidious and damaging economic strategy which is used by governments at all levels and pretty much with every party. Whether through direct subsidies, preferential tax treatments or selective regulations, governments try to pick economic winners among the business community and invariably end up creating losers.

Franco Terrazzano of the CTF and I discuss historical examples of failed corporate welfare along with current ones. From the city of Calgary’s $100 million slush fund to Premier Kenney’s petrochemical initiatives.

As governments seek ways to restart the economy that they shut down, the lure of trying to use corporate welfare in order to do it appears to be overwhelming for them. Punishing successful enterprises in order to shore up the unviable ones won’t help anybody (aside from the crony capitalists with hands extended).

It was a great chat and we covered a lot of ground in 40 minutes. Give it a listen below.

1 thought on “Podcast. Talking corporate welfare with Franco Terrazzano of the Canadian Taxpayer’s Federation

  1. That was an interesting interview.
    Without question, the provincial and municipal unions will have to take pay cuts. Given the private-sector reductions, a 20% reduction in salary is fair. If the unionized staff want to strike, there are plenty of people willing & able to take their jobs.
    In addition, now is the time to convert all gov defined-benefit pensions to RRSP-matching. There is a reason why the private sector did away with the luxury pensions the public sector has — they are unsustainable, especially with the system where you can retire at age 55. The longer it takes for action on pensions, the worse the pain will be. By doing nothing, the AB gov will be borrowing in order to pay the pensions of civil SERVANTS retired from many, many years ago. What’s the average life expectancy now?
    My guess is close to 80. On what planet, can you afford to pay someone 90% of their highest wage for 25 years (i.e., 80 – 55 = 25), and have their pension indexed to inflation?

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