ss_blog_claim=8dcabb3175f064b32823a45ed345083b Majik's Thoughts: Bail Out Your Own Boat


Bail Out Your Own Boat

I read something today that I found interesting. The Harper government has stated that it will not bail out a sinking business. This just means that it really is sink or swim. I'm not surprised that the Canadian government is not in the business of keeping a company a float; shouldn't a good business be able to keep its own head above water for it to be a good business? I have worked for some good companies and some bad companies before and the good companies have an uncanny ability to make a decent profit to keep the business running. Isn't that the nature of business?

I may not be a business man, but I have seen what good companies can do to increase their profit margin. If you need a government grant to stay in business, you must be doing something wrong. Most companies can be competitive and create their own niche, these companies will be successful. With business' that don't need financial help from governments, the amount of money injected into the economy is minimal and allows for government funds to be funnelled into something else.

I remember hearing about Ford getting a needed cash injection from the government not to long ago and the Oakville Ford plant was able to stay open because of it. Now of course that saved a lot of jobs, but it really only helped the community in Oakville Ontario; surrounding cities are struggling to keep jobs local and more people are commuting to work. Steel workers rule some cities, but the problem is that other jobs in those cities are mostly retail and usually are not enough to help the city grow. When your city only has two types of jobs available like steel work and retail work, if you want a good job you're going to have to commute to find one.

The Canadian economy is going to slow eventually but more jobs need to be created before the economy slows. The sooner these jobs get created the less likely an economic slow down will occur. Out in the west of Canada, jobs are plentiful and usually pay better than some jobs here in central Canada. Granted the cost of living is higher in the west, the rest of Canada is slowly catching up. More and more houses are going for higher prices and the market doesn't look to be slowing down. In general, what I've seen indicates that Canada's economic boom is not over yet, sure the dollar is trading better against other currencies but it will not last forever. Canadians need to support Canadian business instead of the burden falling on the shoulders of the government. I personally agree with Harper's government when they state that they will not bail out any business. I think Canada would be better if the government forces companies to sink or swim. That's my opinion, what's yours?

Image Source: Wiki Media Commons
News Story: Ottawa won't be in bailout business this year: PM


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