Manitoba Votes 2003


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6/4/2003 3:12 a.m.

Innovation Needed

A sweeping victory it is for the New Democrats but they will be evaluated on how humble they are in governing with the majority Manitoban's have entrusted them with. If they use this large majority to vigorously and recklessly pursue ideological objectives like Gordon Campbell's Liberals have in BC, the New Democrats will betray the public's trust and be out in disgrace in 4 years time.

Mr. Doer and his colleagues have governed cautiously, realizing perhaps that while Manitobans reject right wing parties, they are essentially small "c" conservatives, more intent on good government than some ideological champion. They illustrated this in 1981 when they kicked out Sterling Lyon's Conservative government after only one term because it was seen as too ideological, dogmatic and insensitive. Manitoban's resistance to Stuart Murray's Conservatives could have been caused by its being too close to the reckless Alliance party and only distant cousins to the "Progressives" which were born in Manitoba and the mainstays of Bracken and Roblin.

The Pawley government (of which I was a part) fell after 1.5 terms when it lost public confidence due to troubles in three major crown corporations (Manfor, MPIC and MTS), questions about its ability to manage public finances and the resulting tax increases and ICBC rate hikes necessary to balance the budget and get ICBC back on sound footings. This occurred at the beginning of the era of tax cuts and public sector cuts - what George Bush the Elder once referred to as "Voodoo economics".

In BC we are now reaping the benefits massive tax cuts and of years of trashing the public sector. Scores of school closures, class sizes of 35 and more, no investments in structural health care reforms that will enrich the public system instead of starving it, massive increases in tuition fees, blatant disregard for the environment and huge, record setting deficits.

The naive belief that tax cuts would stimulate the economy and bring in ever greater revenues to government never proved accurate. The economic boom of the 90's (like the steamer and railway induced roaring 90's a century before) was due to sweeping technological advancements that won broad public acceptance, were integrated into most aspects of life and created millions of jobs not even dreamed of 5 years earlier. Despite a recent Congressional Joint Committee on Taxation's conclusions that Bush the Younger's massive tax cut will only produce a "revenue feedback" of 2.6% to 23.4% over 10 years (which means a revenue decrease of 97.4% to 76.6% of the value of the tax cut - hardly a tax that that pays for itself or a stimulant to the economy) Congress ignored its warning and voted on Voodoo faith.

The good news for Mr Doer an his large caucus is that the pendulum has swung to its rightward limit and may already be swinging back towards the centre. The massive increases in the American deficit will likely mean an end to the Voodoo economics behind tax cuts as massive cuts to state transfers and federally funded programs such as Medicare, Medicaid and Education are having a profound impact on access to decent education and health care across the USA and destabilizing state governments.

I would argue that the main purpose behind tax cuts in BC and the USA has been to justify massive cuts in public services. It has been a brilliant strategy by conservative politicians, parties, media and vested interests vilify the public sector in the interest of balancing the Budget, a legitimate and widely accepted objective of sound public policy. The bigger they drive the deficit via tax cuts, the deeper they can justify cutting public services. Just as the War on Iraq would not have been saleable without the fabricated WMD and Iraq-Al Qaeda linkages, the war on the public sector would not be possible without equally false economic arguments.

I suspect Manitobans, like most other Canadians, are more focused on protecting and improving public services than deconstructing them. Mr. Doer and his colleagues will have to be innovative and be willing to tackle structural issues that preclude constructive reforms needed to tackle such vital and expensive programs as health care, social assistance and education.

Don Scott (MLA Inkster, 1981 - 1988)
Victoria, BC




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