When the federal government said earlier this week its investment of $1.7 million in a Brampton, Ont., pasta plant would create 10 jobs, some questioned whether that taxpayer money was being put to good use.
The $1.7 million subsidy for Italpasta Ltd., billed as the largest pasta manufacturer in Canada will help it “increase production to keep up with growing demand,” according to Filomena Tassi, the minister responsible for the Federal Economic Development Agency for Southern Ontario.
Meanwhile, the benefits of such government corporate subsidies on a much larger scale were trumpeted by both Prime Minister Justin Trudeau and Ontario Premier Doug Ford last month.
“It is fairly irresponsible … to be using this money and defending this on a job creation argument,” said Kent Fellows, assistant professor of economics at the School of Public Policy at the University of Calgary.
But Fellows says, under the free trade agreement, a lot of auto parts will pass back and forth across the border multiple times before they end up in a finished product.
“You could go out and ask a bunch of economists and you’d probably find hundreds of programs that would do a lot more for economic growth than giving a couple of tens of billions of dollars to the auto companies.”
The original article contains 1,031 words, the summary contains 196 words. Saved 81%. I’m a bot and I’m open source!
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When the federal government said earlier this week its investment of $1.7 million in a Brampton, Ont., pasta plant would create 10 jobs, some questioned whether that taxpayer money was being put to good use.
The $1.7 million subsidy for Italpasta Ltd., billed as the largest pasta manufacturer in Canada will help it “increase production to keep up with growing demand,” according to Filomena Tassi, the minister responsible for the Federal Economic Development Agency for Southern Ontario.
Meanwhile, the benefits of such government corporate subsidies on a much larger scale were trumpeted by both Prime Minister Justin Trudeau and Ontario Premier Doug Ford last month.
“It is fairly irresponsible … to be using this money and defending this on a job creation argument,” said Kent Fellows, assistant professor of economics at the School of Public Policy at the University of Calgary.
But Fellows says, under the free trade agreement, a lot of auto parts will pass back and forth across the border multiple times before they end up in a finished product.
“You could go out and ask a bunch of economists and you’d probably find hundreds of programs that would do a lot more for economic growth than giving a couple of tens of billions of dollars to the auto companies.”
The original article contains 1,031 words, the summary contains 196 words. Saved 81%. I’m a bot and I’m open source!