The Conservative government has used a CHP plan, or at least part of it, to help stimulate our economy. Unfortunately they didn’t make use of the whole idea, so the positive effects will not be as wide-reaching or long-term as the CHP could have made them.
Is it just me, or has anyone else noticed all the federal money pouring into Canadian infrastructure lately? New highways in Nova Scotia and Saskatchewan. Big transit enhancements in Toronto and Vancouver. Thankfully, New Brunswick is getting its share, too!
Mike Allen has been as happy as a clam the last couple weeks, gallivanting around our Tobique–Mactaquac riding writing federal cheques for all sorts of fun infrastructure projects. So far, funding has been announced for Grand Falls, Saint-André, Perth-Andover, and Florenceville-Bristol, and these are only part of what is “expected to be a flurry of economic stimulus projects”1 in the coming weeks.
This is a big positive for New Brunswick communities, as they are getting better services and more jobs are created for the local economy. That all this is happening is fantastic, but don’t be too excited. All these loans are still costing us, by way of interest.
Did you know that the CHP has had an infrastructure plan to stimulate our economy similar to this for some time? The big difference is, the CHP would offer interest-free loans to the provinces, municipalities and cities.
Jobs stimulate the economy. The CHP would revive the plan that was successfully used in Canada to combat unemployment after the Second World War. The Bank of Canada was ordered to make virtually interest-free loans to provinces, municipalities and cities for infrastructure projects: roads, highways, bridges, rail lines, ports—today we could include hospitals, urban and inter-urban passenger rail lines, water and sewage treatment plants. These facilities improved access to resources and to markets, and the increased economic activity enabled the borrowing agencies to quickly repay the loans — which were then retired, so that the injection of capital was non inflationary.
That construction activity touched off the longest-lasting economic boom in Canadian history. And when the loans were repaid, the permanent infrastructure was still there.
The only solution the other Parties can offer is taxing you or charging interest. One way or another, you pay. It’s time for an infrastructure initiative that works — one that doesn’t rely on increasing your financial burdens.
Conservatives Use CHP Plan to Stimulate Economy
Posted March 19th, 2009
by Jason Farris
The Conservative government has used a CHP plan, or at least part of it, to help stimulate our economy. Unfortunately they didn’t make use of the whole idea, so the positive effects will not be as wide-reaching or long-term as the CHP could have made them.
Is it just me, or has anyone else noticed all the federal money pouring into Canadian infrastructure lately? New highways in Nova Scotia and Saskatchewan. Big transit enhancements in Toronto and Vancouver. Thankfully, New Brunswick is getting its share, too!
Mike Allen has been as happy as a clam the last couple weeks, gallivanting around our Tobique–Mactaquac riding writing federal cheques for all sorts of fun infrastructure projects. So far, funding has been announced for Grand Falls, Saint-André, Perth-Andover, and Florenceville-Bristol, and these are only part of what is “expected to be a flurry of economic stimulus projects”1 in the coming weeks.
This is a big positive for New Brunswick communities, as they are getting better services and more jobs are created for the local economy. That all this is happening is fantastic, but don’t be too excited. All these loans are still costing us, by way of interest.
Did you know that the CHP has had an infrastructure plan to stimulate our economy similar to this for some time? The big difference is, the CHP would offer interest-free loans to the provinces, municipalities and cities.
Jobs stimulate the economy. The CHP would revive the plan that was successfully used in Canada to combat unemployment after the Second World War. The Bank of Canada was ordered to make virtually interest-free loans to provinces, municipalities and cities for infrastructure projects: roads, highways, bridges, rail lines, ports—today we could include hospitals, urban and inter-urban passenger rail lines, water and sewage treatment plants. These facilities improved access to resources and to markets, and the increased economic activity enabled the borrowing agencies to quickly repay the loans — which were then retired, so that the injection of capital was non inflationary.
That construction activity touched off the longest-lasting economic boom in Canadian history. And when the loans were repaid, the permanent infrastructure was still there.
The only solution the other Parties can offer is taxing you or charging interest. One way or another, you pay. It’s time for an infrastructure initiative that works — one that doesn’t rely on increasing your financial burdens.
1. Victoria Star, March 11, 2009
Category: Commentary
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