via sda: By Kate on May 14, 2016 1:28 AM
Ontario's industrial structure continues the decade-long shift from its traditional pillars of manufacturing and finance to government-directed investments in transportation and utilities. Before the recession, capital spending by manufacturing and finance reached $18.3 billion. Now, they total half that. In their place, investment in transportation and utilities has doubled from $10 billion to $20 billion. Instead of world-class factories and banks, Ontario now invests in mass transit and green-energy projects, mostly dictated by government.
[...]
The contrast between business investment in Quebec and Ontario shows that the billions poured into government infrastructure and green-energy projects has not "kick-started" Ontario's business investment as the government hoped. In fact, the high taxes and electricity rates needed to pay for these schemes seems to be driving investment out of Ontario, especially from its manufacturing core. Slumping investment is hardly surprising since business confidence in Ontario is the lowest in Canada, with only 30 per cent of firms saying the province is headed in the right direction. Not even a lower dollar has made it worthwhile for firms to expand. Instead, Ontario's building a magnificent transportation infrastructure to carry imported goods that used to be made here and to ferry commuters to jobs that will not materialize as long as business investment flounders
Philip Cross: It’s official. Kathleen Wynne’s Liberals have made Ontario’s economy as pathetic as the Maple Leafs | Financial Post
Ontario's industrial structure continues the decade-long shift from its traditional pillars of manufacturing and finance to government-directed investments in transportation and utilities. Before the recession, capital spending by manufacturing and finance reached $18.3 billion. Now, they total half that. In their place, investment in transportation and utilities has doubled from $10 billion to $20 billion. Instead of world-class factories and banks, Ontario now invests in mass transit and green-energy projects, mostly dictated by government.
[...]
The contrast between business investment in Quebec and Ontario shows that the billions poured into government infrastructure and green-energy projects has not "kick-started" Ontario's business investment as the government hoped. In fact, the high taxes and electricity rates needed to pay for these schemes seems to be driving investment out of Ontario, especially from its manufacturing core. Slumping investment is hardly surprising since business confidence in Ontario is the lowest in Canada, with only 30 per cent of firms saying the province is headed in the right direction. Not even a lower dollar has made it worthwhile for firms to expand. Instead, Ontario's building a magnificent transportation infrastructure to carry imported goods that used to be made here and to ferry commuters to jobs that will not materialize as long as business investment flounders
Philip Cross: It’s official. Kathleen Wynne’s Liberals have made Ontario’s economy as pathetic as the Maple Leafs | Financial Post