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The Globe and Mail

Mayors don’t create jobs or grow the economy

The next time you hear Don Atchison or any civic politician try to take credit for the economy or job creation, read this article.

It always rings false when political candidates promise to create heaps of new jobs. Conservative Tim Hudak claims he would wave his magic wand and create no less than one million, just like that.
When candidates for mayor vow to spin jobs out of straw, the boast sounds especially hollow. Most job creation comes from economic growth, and mayors have very little power over that. Even prime ministers and premiers exaggerate their influence over the business cycle and they have far more than mayors.

That hasn’t stopped this year’s crop of mayoral candidates from posing as magicians of job creation. Start with John Tory, a former Conservative leader and business executive who should know better.

On Wednesday his staff sent a bulletin to the media: “John Tory to unveil plan to create 70,000 jobs.” When the promised unveiling came the next day at an east-end coffee wholesaler, it turned out that he was merely expressing support for a private company’s existing proposal to develop some industrial land near the mouth of the Don River.

First Gulf wants to build a new business hub on the site, an ambition it announced a couple of years ago. Its chief executive says the development could bring “as many as” 70,000 jobs to the city. In other words, up to 70,000 people could work there one day. Making a place for 70,000 people to work is not the same as creating 70,000 jobs.

Though the proposal is promising, there are big hurdles to jump before it can happen. Making the land usable would require rerouting the east end of the Gardiner Expressway and running new roads and transit lines into the area at the cost of many millions. All of this is already being studied at city hall. Mr. Tory’s endorsement of someone else’s proposal that is years from fruition hardly amounts to “a plan to create 70,000 jobs.”

His other job promises are almost as implausible. He wants to start a new medical school at York University, exploiting the coming subway link with Humber River Regional Hospital and creating a “high-tech employment corridor.” Mayors don’t create medical schools. That is a provincial responsibility.

He wants to lean on companies to hire more young people, a plan that, according to his website, would “result in thousands of new youth-employment jobs in his first term.” He would use his personal connections, too, calling business contacts to remind them of their “civic responsibility” to hire the young. Even a man as plugged-in as Mr. Tory is unlikely to create many jobs just by picking up the phone.

How to cities encourage economic growth?

Rather than pressuring or forcing companies to hire, city hall should be creating the conditions that make them want to hire. That means keeping taxes reasonable, cutting red tape, providing good services, building and maintaining infrastructure – all the things that make a city an attractive place to live, work and do business.

Saskatoon has the tax part down, now if we could just cut red tape, provide good services, and maintain our infrastructure, we could become something some day.

What I Read

I get asked all of the time what I read and I thought I would toss it into a blog post.

For news, the first site of the day I check on National Newswatch.  If you aren’t checking it out everyday, you are doing your news all wrong.  I then check out the links of The Morning News and browse Metafilter.  I have had an account for years but rarely log in.  I check out the National Post, Macleans, and The Globe and Mail.  Once I get the national news I check out The Toronto Star and Calgary Herald.  While not daily reads, I do read everything that is posted to the Hill Times.

The two sites that I explore the most are Yahoo! Sports and ProFootballTalk.  I check Yahoo! Sports about 10 times a day and ProFootballTalk in the morning and then again in the evening.  It is America’s Cup season which means that I spend a lot of time on YouTube.  I generally watch the 20 minute race recap and if I have time, I watch the whole race on my TV via the PS3 app.  YouTube on your television will forever change the way you watch TV.  It is amazing.

I also follow Doug Smith’s Sports Blog where he lives and mostly dies with the Raptors.  I read it because he is a great source of Raptors news but also because he has a unique blogging style that I really like.  Once I am there, I generally find myself in The Star’s sports section where the goal is to avoid the Toronto Maple Leafs coverage.  Then it is to check out the National Post sports but more or less I am just there to see if I missed anything that Bruce Arthur wrote and I missed his tweet to it.

Sportsnet.ca is my next sports stop and that is see what Michael Grange is writing about.  Much of Sportsnet is written by television personalities and it shows but Grange is a sportswriter.

I don’t blog a lot about military technology and affairs but I do read Wired’s Danger Room daily and Tom Rick’s The Best Defence Blog.   For urban discussions I follow a lot of people on Twitter but I also check out the Direct Transfer, Streets Blog, and The Atlantic Cities.

I subscribe to The StarPhoenix and pick up a copy of Metro News.  I also read Planet S. Saskatoon Express, and Verb weekly, mostly because I know some of their writers and I respect what they do.  

For magazines, I subscribe to Spacing, The Atlantic Monthly, the New Yorker, and Foreign Policy

For blogs like most of the free world, I read Kottke.org daily and check out Gordon Price‘s blog weekly.  I would read City Hall Notebook more but The StarPhoenix kind of let it die, although it seems to be coming back to life lately.

There are always a couple of books on the go.  I own a Kindle but don’t use it much.  Mostly because I prefer to browse Indigo and McNally Robinson.  For all of the wonderful things that Amazon.com does, browsing books is the domain of the bookstore.

What am I missing?  Suggestions?