Flaherty failures

A few months back the financial wizards of the Conservative party, Jim Flaherty and Mark Carney, told Canadians that corporations were stashing billions of dollars in reserve funds and not doing their part in helping the economy.

At the time I questioned their logic saying that without viable markets there is no point in investing in equipment or technology. If one improves productivity and the company produces the same product more economically and in higher volume while sales remain stagnant then investment is redundant and needed cash flow will not be available for future recovery.

Flaherty was a failure as the Provincial Minister of Finance and he is proving to be no better federally. Carney, on the other hand, is touted as a financial guru and appears to have done a good job with the Bank of Canada so I have no idea why he would say anything so foolish, but he did.

Recently the Federal government was given a lesson in "Business Economics 101" and a briefing informed Flaherty of the error of his statements, not that it will improve anything but at least he will be able to retire knowing he doesn't know anything.

http://metronews.ca/news/canada/716202/study-deflates-claim-of-corporate-cash-hoard/

 

 

Those who can do, those who can't enter politics