PuckChaser said:At the end of the day, our economy is still largely linked to that of the US, and the rest of the world. Especially since Ontario's recent governments have destroyed the manufacturing sector, making it harder for the rest of the country to drag itself out of a recession. When your largest population province is draining from transfer payments and not contributing to the success of the country, you're going to have a real hard time to balance a budget.
Of course this is the case, but we still can enact policies that can ameliorate the worst effects of a global recession. The destruction of the manufacturing sector in Ontario is actually largely due to NAFTA, which was a decision made at the federal level (with some input from the provinces). NAFTA has made capital far more mobile, while labour must still observe international borders. So of course higher paid Canadian workers suffered, as did the manufacturing sector as a whole. This outcome was predicted by many, but the warnings were ignored.