Ontario is saying 'look, this program is already sort of hurting us. We didn't mind for the longest time because we could easily afford it. Now it's starting to pinch.
They've got to get spending under control and it's not a very palatable thing, either, to say you're going to cut spending on health care or education.
Most employers and workers will be glad to see this happen.
The fiscal gap and the idea of Ontario becoming a have-not province are related, but not closely related.
The major part of the problem in Ontario over the past few years is on the spending side, and unimaginative policy decisions, and we haven't really done much on the fiscal side to sort of stem problems with the increased spending.
The Fed doesn't have to get too worried about inflation creeping up, but it can't get complacent.
We're just getting energy prices going through the roof. The longer period of time (consumers) have these elevated prices, the more it starts to weigh on sentiment. People have held on pretty well but the longer this remains the more risky it becomes.
You're in a situation where you're stuck, because no government wants to go out there and say, 'we're in dire fiscal straits, we've got to increase taxes'.
Not many parties want the optics of coming to the rescue of what is considered to be a very rich province in Canada.
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