zhamid wrote:
It's great to have resources, even greater to use them to turn into a true industrial nation. In Canada resources mostly belong to Provinces (with certain exception). High oil prices may help Alberta and Saskatchwan, but they wont do jack for us in Ontario ... which sadly is (rather, was) an outsourcing house for US companies.
And they shouldn’t help us in Ontario. If a particular resource is in demand, companies will flock to it looking for profit, and in turn create jobs. By allowing Alberta to keep the profits from its resources, it can lower taxes, or increase program spending. This makes Alberta a better place to live, and further encourages people to relocate there. They have high paying jobs as one incentive, and good government benefits as another.
When you spread the wealth around, it encourages people to stay in unproductive regions. One only needs to look at the Maritimes to see proof of that. People fish in the summer and go on EI all winter, and Alberta (and previously Ontario) foot the bill.
zhamid wrote:
Canada should enjoy its resources but should also build a true industrial / technological economy that can survive without the extra income from resources. There is no reason why Google, Microsoft, Apple etc. couldn't have started in Canada - had we better policies.
You don’t ‘build’ an industrial/ technological economy. Russia tried to build one and it failed. Industrial/ technological economies create themselves. You can help them by creating an environment where they can grow with low taxes, low regulation, low corruption, and an educated work force all help, but there are other factors necessary that are difficult to control. Ease of transportation, local access to water for industrial use, and a dense population are key factors for industrial purposes. Ontario just happens to have the right mix for all of this (The St.Laurent river is what originally made us a destination for settlers because it was easy to move goods across).
I wouldn’t say we have better or worse policies then the Americans. They are just bigger, so it’s natural that it seems like all the innovation happens there. They may have Google, Microsoft, and Apple, but we have RIM, and (had) Nortel. It’s natural that for every 1 big Canadian company, there will be 10 American. Americans do get a slight edge because their massive size and temperate climate helps them attract educated people from around the world better then we can.