How Vulnerable is the Ontario Economy?

To understand how vulnerable the Ontario economy is to the current conditions of the US and Canada economy, it is useful to look at where the strength of the economy has traditionally been.

Structure of the Ontario Economy, 2007 Per Cent share of GDP

Some published reports that give some insights into the potential impacts on the Ontario economy and consequences include:

 

It is interesting to note that Quebec and Ontario account for over 85% of ICT manufacturing in Canada (based on 2002 numbers from Stats Canada).

Click to enlarge
Click to enlarge

Some good sources of reference materials to dig deeper and form your own opinions are available at:

News articles reflecting important changes to the Ontario economy:

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2 thoughts on “How Vulnerable is the Ontario Economy?

  1. Tony Vario

    Mr. McGuinty,

    Thank you for allowing me to express my views regarding Harmonized taxation. Mr McGuinty, I ask you to have a good look at this form of taxation regarding human essentials such as homes – we need them in order to survive. Taxing homes will eventually create a glut of homes in our marketplace in Ontario. Ultimately, this action will cause people to think twice of buying a new home. By introducing the Harmonized tax, Ontario will loose jobs – this in itself would loose revenue for both the provincial and federal level of governments. By you adding the Harmonized tax – more people will be unemployed, UIC will continue paying out more funds than ever before. Mr. McGuinty – the people of Ontario deserve to work, they deserve to have disposable income in order to treat their families to a fulfilling lifestyle, and they deserve to purchase goods hopefully manufactured in Ontario to keep the “Ontario Big Machine” turning. Homes, vehicles, clothing, food, electricity, home heating fuel including natural gas are essential items and should not fall into the Harmonization of taxes. Mr. McGuinty this is no different than the catastrophe that Mr. Miller created with the land transfer tax and the surcharge tax issue in which people are now shying away from purchasing homes within the City of Toronto. The revenues that Toronto is loosing is unbelievable and all compliments of Mr. Miller and his group of followers at City Hall. Mr. Miller has created such a division within the city that could never be repaired.

    Issues such as this should all be implemented by referendum and not by one individual and his caucus – put the vote to the people, let the people decide whether certain taxes should be implemented. If it falls because of the vote – then local governments should become more creative and find means of creating revenue, not by adding more taxes to our menu. Up to now, we choose to add taxes only to find that months ahead – revenues decrease because people find means of not paying the tax. The majority of the middle to low class income earners cannot afford any more taxes. Governments should realize this, but do not. Governments should leave well enough alone, especially during recessionary times when revenues fall not only for the general population but also for governments. Our Government think their policy with increasing taxes is infallable even during a recession. Just like the stock market – revenues come back when the economy goes back into overdrive. We have too many government representatives arguing about stupidity.

    I would also like to draw your attention to Gasoline Prices – Mr. McGuinty, maybe you do not realize because you are extremely busy – but we the taxpayers are being ripped off with current gas prices. As a reference point. Naples Florida has current prices of $2.49 per US Gallon translating to $0.6587 per litre add a 9% surcharge with currency fluctuation $0.78 per litre – why are we paying 37% more in Ontario for gas – let alone Premium unleaded gas in Ontario (Sunoco 94 octane is 16 cents per litre – in Florida it is 15 cents per gallon – that represnts a surcharge of 60 cents per gallon US. Mr McGuinty given a true comparison one equivalent US gallon of Premium unleaded gasoline would cost $1.14 per litre or $4.31 per US Gallon compared to $2.64 or 63% more expensive than the same gas that you can purchase in Florida

    Could someone explain to me how the gas companies arrive at all of these ridiculous figures – all inflationary and creating unemployment with a decrease in taxation revenues of course

    Tony Vario

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