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[HISTORY LESSON]

_ Canadian Taxpayers’ Federation. The author is Kevin ..,

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The following piece | is taken, from the ‘March 27,

1992 issue of Let's Talk Taxes, a publication of the —

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Avram, an accountant, st fob
In a técent issue of the ‘Taxpayer, published by . ‘ .
the Canadian Taxpayers’ Federation, Dr. Chris
Gerrard, the federation’s chief economist, sets outa

‘Canada and ‘Argentina, a comparison which should: * ey

cause Canadians to shudder in fear as they realizé'**"
that-our-nation has headed down exactly the’ same’ **
road which turned Argentina into a bankrupt: third’. «
world country. Gerrard writes: © ee Peat
 ipgday: most people think. of Argentina as a “

bankrupt ‘tiation, in: the third. world. ‘This wasn’t
always’ the case. Back in the 1910’s and 1920's, .. -

Argentina was as economically developed as Canada, : ..

Both countries had taken advantage.of the internas: i." J |

tional wheat boom of the early 1990’s,to launch their...

industrialization programs. In --1917,; Argentina _ ae ee
produced more wheat and had.a more, diverse indus-. »

trial sector than Canada, and’ during. the 1920’, ..

Argentina’s economy grew faster than ours did. They . «

had. an annual growth -rate of: 1.8%, compared to. .

1.2% for Canada, and real wages there grew twice as

fast as-real wages in this country:,

_ "Why did they. veer off course? A recent book by ;

Argeritina’s Finance Minister Dominigo Cavallo titled

sobering insights into the answer. | “
“Ror startérs, Argentina didn’t like competitive
trade. They responded to international competition —
by impleme iting protectionist trade policies, and like
Canada, their: way ‘of dealing with other national

problems ended up producing nothing but big govern-'

hyperinflation, ee
“The government regulated almost every, sector

merit and. deficit: financing, which eventually led to

5

of the economy, subsidized: local industries, and
expanded social welfare programs beyond the fiscal
capacity of the economy to sustain. them. Hiding
‘behind high tariff.walls, protected from outside
competition, Argentina's manufacturing and indus:
trial sector became increasingly inefficient, and was

eventually. unable to sustain:the oversized govern

ment bureaucracy.

“Instead of cutting back on spending though, the

government continued running big deficits. First, by
racking up a huge
of revenue “dried ‘up, they simply began printing

money, eventually driving inflation up-to 5,386% in:

240° 0— he " _ “. brrace Review —- May 8, 1992

been: attempting to reverse six decades of ruinous

rear

foreign debt, and after that source _

"Under Argentina’s present government, they've

“2. seconomic policies. They’ve cut apending, capped social
jagsistance payments, and laid off 380,000 govern-

ment employees. After ‘all this painful medicine, —
Argentina is today running deficits of less than 3% of -
total spending. Previously, they were running deficits
that amounted to 25% of total, spending, exactly like
the Mulroney government is doing in Canada today.
"Is it possible. for Canada .to become like
‘Argentina? Can a nation as rich as ours. become poor
in a relatively short period of time?. Obviously, the
answer is yes, and, if Canada doesn’t get its fiscal
house in order, and fast, that’s exactly where we're
heading. This tragic situation did not have to happen
‘in Argentina. It could, and may very well happen in
Canada. OS

' "Tf Canadians think that. we can go on ignoring
sound financial :management,:.and yet perpetually
maintain high living standards and a prosperous
nation, we're in for a pretty rude awakening.”.

cw Kevin Avram —

TERRACE | i) OE. REVISION™ ©

| " ° 4992 VOTERS’ LIST =
The Court of Revision to hear complaints and to: correct
or revise the 1992 List of Electors will sit in the Municipal
Council Chambers’ of the Terrace Municipal building at
Ten (10:00) O'Clock in the Forenoon on Wednesday, May -

27,1992,

A copy of the 1992 List of Electors is posted and Is avail- |
able for viewing at the Municipal Office, 3215 Eby Street, :
Terrace, 8.C., during regular. office hours (8:30°a:in- to”
4:30 p.m.), Monday through Friday. _

The Court of Revision may:

(a) correct the names of electors incorrectly stated;

(b) add the names of alectors omitted from the list;

(c) strike from the list the names of persons not entitled to
vote or disqualified from voting; =

(d) correct any other manifest error therain; or

(e) add to the list the name of a person qualifiedon May
15, 1992, to have his name entered on the list and for»
this purpose, an application for registration may be
accepted if delivered to the Court of Revision at its

__. first'sitting. a

All persons entitled to have their name entered on the list

should check to determine whether or not they have been
omitted or incorrectly recorded. - :

All complaints should be addressed to the Municipal Clerk
- 3215 Eby Street, Terrace, B.C., and be in his hands
prior to the first sitting of the Court: I

Further information may. be obtained. by telephoning City
Hall at 635-6311. a

pt oe '’ E.R. Hallsor,

a Clerk-Administrator