Premier Dalton McGuinty personally congratulated Chrysler Group CEO, Sergio Marchionne, for the car company's payment of its Ontario loan — six years ahead of schedule.
McGuinty thanked the company for its commitment to Ontario on behalf of taxpayers and families who depend on the auto sector. Chrysler paid $567 million, including $6 million in interest, last week.
Ontario partnered with the Canadian and American governments to support the restructuring of Chrysler that saved thousands of jobs and kept the automaker in Canada. Ontario provided restructuring assistance to Chrysler in 2009.
The company recently announced five new production launches at its Brampton and Windsor facilities, plus an investment at its Etobicoke casting plant.
Strengthening the auto sector, with government, industry and Ontarians all doing their part, will preserve and create jobs for families. The auto sector accounts for over three per cent of Ontario's GDP.
- "Paying off" for Families is based on government interrupting the free market. It did not matter Chrysler (and GM) were poorly run firms. It did not matter that 'supply and demand' spoke and Chrysler failed take heed to the call. It mattered not that several other manufacturing companies failed and went under. What matters is that Mr. McGuinty believes that it's the governments job to to strengthen industry.
Chrysler receiving bailout money and paying it back does not mean that families win; unless you define families winning by 'partnering with governemnt'. Mr. McGuinty's logic is simple but discrete: strengthen economy by government intervention = strong families.
How do we know that the 'short term devestation' of GM and Chrysler going under would not have had a much better effect on families in the long run versus intervention? The principle of supply and demand within a free market is good. Fighting against this principle with 'loving intervention' may sound nice at the time, but only lays a foundation for principles we may one day wish we never gave consideration to.
(Federal Conservatives seem to be in a similar boat on this one)