I am writing this even before the games have started in earnest.
There is no wonder how political leaders can rail endlessly about economic failures such as the proposed Brampton LRT and the PanAm games.
The PanAm website boasts 75% of tickets will be $45 dollars. At approximately 1.2 million tickets sold that is roughly 45 million dollars while the budget cost is exorbitant at 1.2 billion dollars. The Financial Post tags the games budget at 2.6 billion dollars. I’ll bet the Post is more right than the Ontario official web page. It will most likely require the AG to reveal the true cost of the games.
In addition, foreign business investment as a result of the games is estimated to balance the costs. If this is the estimate, by what standard are these games judged? Let us stick with an economics.
If an undertaking is good, the first rule is to make a profit. This government sponsored event won’t. A longer term, positive indicator is the games should increase the wage level of Ontario. A year or two down the road (mark my words) check your wallets and purses. Will you be richer with more secure saving? This won’t happen. Another indicator of a good economic decision is an out, however slightly of Ontario’s stagnant recession. Ontario’s spendthrift province, being the spendthrift province will not have a surplus, or savings that can go anywhere due to existing debt so there will be no future seed money. The reason PanAm is already such a loser is because there is wild spending, and no production involved. There is nothing sustainable but only a deep black debt hole getting deeper with each passing sport day.
I’m not against the games but they could have been staged much leaner, and could have made a profit if only it was privately run as Los Angeles was. The Freedom Party of Ontario is right in its stopping similar games in London a few years ago, “No tax for PanAm games.”
The proposed LRT for Brampton are much the same kind of losing proposition but the conditions are very much different. The underlying principles and economic principles remain the same.
More on Brampton’s LRT later.
I don’t write political officials often, but this time I did. The City of Brampton is on the verge of making a terrible mistake if council members vote July 8, 2015 to accept provincial funding for a new, LRT which runs from Mississauga to downtown Brampton.
Dear John Yakabuski, MPP Renfrew Nipissing Pembroke
July 8, 2015 the City of Brampton may vote to go into a black hole debt, worse than what the province is in.
Our mixed economy has already gutted Ontario’s middle class, and now further threatens our innocent young children.
We are billions in the red already with a debt clock speeding time ever faster to default. You, other government officials, rate-payer groups, businessmen and residents have been ineffectual to reverse this madness.
This province has no money for the PanAm games, Metro rails and subway plans. Brampton has little reserves for a potential tax gouge. A massive make work program for overly expensive union workers is not production, economic development, or “job creation.”
Residents understand our Brampton Mayor and the Transport Minister is trying to sell us this make work project, stripping our children’s life savings. We, the middle class are already gutted from strategic hosing. To sell the big move here with our own money is highly immoral! We do not want the LRT or dump taxes on our neighbors in other ridings who will not benefit one wooden nickel!
Please let your constituency know Brampton rejects LRT plans that will forcibly indebt us into a dark and unstable future. And please tell our MPP, Vic Dhillion to stop hiding and come and stop this billion dollar weight on the young.
I await your response in this urgent matter.
Good afternoon Mr. Harlson,
Thank you for e-mailing the office of MPP John Yakabuski regarding the state of Ontario’s finances and economy and specifically the situation within the City of Brampton. Your e-mail has been printed off for Mr. Yakabuski’s review and consideration.
Thank you again for contacting the office of MPP Yakabuski.
Office of John Yakabuski, MPP