Farmcash

[jazz]

How is a govt job any less different than a heavily subsidized oil and gas job? Or airline job...or ag job.

Does this really have to be explained. There are productive parts of the economy and non productive ones. Govt workers are non productive, they create nothing tangible at the end of the day.

And yes, any industry that creates something that is exported or aids in export is a much higher value industry than anything that resides inside the country only, you know like getting loans to sell houses to each other. All GDP is not equal.

Anyway, who the hell renamed the cash advance program to FarmCash anyway. That makes it sound like a handout when its really a marketing tool. The steal is still on even without the CWB around so its a tool farmers still need.

[ajl]

Which oil and gas jobs are heavily subsidized? If anything, they do the subsidizing. The oil and gas industry is why we live a first world lifestyle. There is little else of worth done in canuckistan.

[jazz]

You guys do realize that our exports are the only thing keeping our currency afloat. Do you think nurses and doctors have anything to do with that. No its exports into foreign exchange markets that give our currency its support.

And another point missed by socialists, farming, oil gas, mining, all our export lead industries hit the all the big notes when it comes to production. Not only is a portion carved off for domestic use, which supports local economies, the rest is exported off the continent.

Only about 4 industries in Canada can check that off. I dont see doctors and nurses offering their services outside of the country.

Some of you need an econ lesson.

[LEP]

Sorry guys.. love the discussion but gotta play devils advocate here.

How is a govt job any less different than a heavily subsidized oil and gas job? Or airline job...or ag job.
Does a teachers salary make the economy spin any more or less than our drought crop insurance cheques that is paid for by what.... 40% federal govt? In alberta 2 winters ago i had a discussion with a landlord who works in oilpatch. Price of barrel was in the crapper and they were bashing trudeau ( rightfully so) but when i asked where he had been working, the answer was, " been all over northern alberta closing in abandoned wells". The ONLY reason he had been working that winter was due to the influx of federal ( taxpayer money) that went to the abandonment well cleanup. When i pointed out that they are federal govt workers right now ...they went pretty quiet.

Im not going to pretend that im some sort of magical wealth creating farmer when every single user that does anything with my grain is subsidized by you and I. The only difference between my dollar into taxes and a teachers.. nurses... cra accountants...* insert public servant job here* is thst i have the ability to control how much tax i pay based on my spending. Tax bill comin? Buy a bunch of fert.. problem solved. My family who are all teachers ( thats a public servant job) dont have that ability.

Come on guys and gals. Get off our high horses and stop pretending grain farmers are holier than though.

The big time operators with 5 x9s ? Those x9s are subsidized by my tax dollars . Just like MY s690 is subsidized by that BTO.

Obviously you missed or flunked your econ class. I will take a stab at explaining the difference.

One way to look at the economic spinoff of agriculture is to look at your gross income on the farm versus the net. Probably 5 or 6 times the net dollars go into creating the net. Those dollars are spread around to your landlord, equipment dealer, chem dealer , bank, employee, etc.

Then you arrive at your net income at which point it is the same as a wage earner. You pay taxes, get your haircut, buy groceries etc. Same as a government employee.

But to create that government job all the government does is reach in your pocket.

So if you make a $100,000 it took 5 or 6 times the dollars to generate that income. But a tax eater whoever they are, are a drain on those that create an economy.

[SmallTimeOperator]

Here is my take. There are some industries that can create new money out of thin air. Basically any industry where the output is greater than the input and are at the beginning of the money food chain, so to speak. These bring new money, or new dollars into the economy. These include agriculture, oil and gas, lumber, mining and others. These industries pay for all their input costs and gain any profits from harvesting raw materials and converting them into cash. Theoretically, there is no paycheque coming in. It’s just raw materials being harvested. This is wealth creation by creation of new money and is the start of the money food chain.

All other industries just recirculate the old money or the old dollars already in the economy. Industries like retail, hospitality, food services, health care, transportation, etc, to name a few, rely on someone else’s money, already circulating in the economy, to be spent on them. This money circulating in the economy is old money, and it is in the middle of the money food chain.

Almost every time money changes hands, it is taxed, and the government gets its share. Let’s just say with GST/PST in most provinces it’s a combined 10% each time. So farmer needs boots, pays a dollar, government takes its 10%, 90 cents left. In ten exchanges of the the same dollar, the government has taxed that dollar down to zero, and it is effectively removed from the economy. This is the end of the food chain. Government does put that money back into the economy though, through handouts, bureaucrats wages, etc, but eventually too that money is taxed back into government hands.

The government gives away the money to some country in the Caribbean to fight climate change, that dollar is gone forever. Government spends money on National Defence, that money too is gone forever. Some of the government spends are necessary, and some aren’t.

But the point is this, without wealth creation at the start of the money food chain, a country will eventually run out of money to circulate.