What Happens When There's No More Money?
Government in Newfoundland and Labrador is insane. It continues to do the same thing while expecting a different result. It continues to pour more money into inefficient systems and poorly planned projects while expecting a better outcome than the last time.
To make matters much worse, the amount of money we spend far outweighs the amount of money we earn. The agencies who lend us money are suspicious that we’ll never be able to pay it back. If things continue to spiral out of control, we won’t be allowed to borrow money anymore.
Financial collapse. Then what?
It is widely assumed that the federal government will not allow us to become “bankrupt” (for government, the correct term is insolvent).
Maybe so. But federal bailout will cost us in loss of democratic independence and sovereignty.
The rescue package probably won't be a Commission of Government all over again, with appointed officials running our affairs on a distressed budget, as happened in the 1930’s and lasting until Confederation with Canada in 1949. We will likely still have a premier, a cabinet, and elected legislators. But the Premier will be a puppet Premier, beholden to Ottawa, discharging the office under tight controls.
No longer will we be masters in our own house, making policy decisions in accordance with our own democratic choices and values. We will take our orders from Ottawa and from the faceless technocrats Ottawa will put in place to oversee us.
Don't expect anything except meek obedience to Ottawa from Premier Ball. The habit of subservience has already set in.
Ball was among the first to accept the health funding deal offered by Ottawa. There will be other examples of the provincial Liberal government falling early and easily into line with Ottawa's desires. The era of the puppet premier has already begun.
What is the cure for the insane government behaviour of spending beyond its means? How can we prevent insolvency, loss of independence, and enslavement to Ottawa? Find out here.