From our favourite economist, Dr. Livio Di Matteo, comes another look at the benefit of northern Ontario leaving the fold to join Manitoba. In previous posts I have, in my intellectually bereft way, discussed the costs and benefits to the citizens of northern Ontario of joining Manitoba, as well as the possibility of a Northern Ontario political party. And by "discuss", I mean to say that I pointed to papers written by Dr. Matteo and made a few pithy comments. Well, enough about me; on to the good stuff.
In the June 20 edition of the Winnipeg Free Press, Dr. Matteo discussed the manufacturing recession in Canada. He noted that, historically, Ontario has weathered this type of economic storm due to its competitive advantage in electricity pricing. He put it this way:
Dr. Doom really lays the boots to Ontario when he notes that:
Between 2002 and 2005, employment in pulp and paper declined by 11 per cent in Ontario, with most of the declines in Northern Ontario. Meanwhile, in Manitoba it rose by 12 per cent. In wood product manufacturing such as sawmills, Ontario saw an eight per cent employment decline while Manitoba saw almost a 15 per cent increase. Put another way, while the last few years have seen several thousand jobs disappear in adjacent Northwestern Ontario's forest products industry, Manitoba's forest sector has added nearly 1,000 jobs...
Damn but those Lakehead kids can be bitter. Wonder why?
In adjacent Northwestern Ontario, which has a surplus of cheaply produced power over and above its own needs, the lack of a regional power authority and a "made in southern