Canadian Citizens Deserve Better
In this day and age, Canadian industry is presently capable of providing us with a standard of living created by Canadians. This achievement will come as a result of the initiative and financial support of motivated individuals and industry. Time and time again, our government has proven unable to supply those sectors of the economy that are capable of creating real wealth with the necessary support and financial structure necessary to be a winner. Canada has become a country that is drowning in its own administrative bureaucracy.
Under the new Trudeau government no program has provided any significant incentives for the investment of private capital in privately owned ventures. Seekers of significant sums of money are forced to turn to the well-connected and networked professionals who have direct access to those serious individuals with the ability to contribute more than just capital. These individuals provide value-added benefits to the union in terms of experience and business background. Individuals who become part of a team in this manner must be accountable to one another and they are forced to justify their actions. Government loans and grants result in a decrease of responsible accountability, which slights the industry as well as the country.
There are not enough owners in this country. Many in positions of responsibility are employees of government corporations or corporations located domestically and abroad.
A sense of ownership engenders a concomitant awareness of commitment that government bureaucracies have great difficulty in cultivating from their employees.
Canada’s problem then, is that there is a need to generate wealth-creating industries that are capable of developing and commercializing products for the benefit of the country’s economic well-being. Presently, there is a lack of incentives that make investments in such industries feasible for private Canadian individuals and industries.
Government has also only done a so-so job of fostering the more profitable “D” of R&D. Any strategy that is designed to provide wealth-creating industries with strong foundations must have as a goal the attainment of a level of excellence that rivals other market economies. This goal is seldom found in the reality of our present system of government. If we preach a belief in the private sector, then let the private sector take over… let natural forces determine things.
Our present system of government collection and spending reduces the impact of our tax dollars by diluting their worth with unnecessary administrative costs. My solution is pushing to the fore a Motivational Tax System. Such a system would, in essence, eliminate the excessive bureaucratization of government while simultaneously returning responsibility of decision and action to the individual.
Government administration has grown to such proportion that our tax-base is no longer able to support its existence, let alone justify it. Remember, one manufacturing job drives three or four in the service industry.
Currently, we are pushing this ratio to its limits and the crack in the foundation is becoming a gorge. The total number of manufacturing jobs that have not already been sent to India and China has been steadily decreasing, while the number of service jobs has been marching steadily onward and upward.
There is a dire need to encourage individuals to spend, invest, and work instead of penalizing them when they do. By spending our tax dollars on various make-work projects, our governments are not creating new wealth. Indeed they often create larger debt. Once government has collected a certain amount in taxes, those taxpayers no longer have that amount to inject into the economy. After its various Governmental expenses, the economy is lucky to get half of what was put into the coffers to be re-injected.
Apart from specifically technical education, Canadians need an educational push towards the process of investing in the development and commercialization of Canadian science and technology. Included in this education is the information required to invest in purely start-up and growth companies.
If Canadian taxpayers realize the importance of their contributions – and have a specific or active part in deciding where their money is to be allocated – investment takes on a whole new meaning. There exists a pride in knowing that you are in some way responsible for the growth of Canadian industry. Individuals become the rulers of their own destiny.
Mark Borkowski is president of Toronto based Mercantile Mergers & Acquisitions Corporation. Mercantile is a mid- market M&A brokerage firm. He can be contacted at www.mercantilemergersacquisitions.com