Quebec Inc. is alive and well

greenhouse temperature for commercial production.” Even so, garbage in, cucumbers out.

There are other cases where cost is downplayed — which, of course, violate rudimentary economics. The government has a program to encourage business investment by subsidizing electricity costs. Cheap, abundant hydro-electricity is one of this province’s big selling points, but we’re also willing to go beyond comparative advantage to attract industry. It’s like the Saudis discounting oil — crazy. We should want exactly the amount of industry our low electricity prices attract on their own and not a dollar more.

But if cost is no object, neither is demand. We read in the economic plan that “Quebecers are passionate about distilled beverages made by local producers that showcase Quebec products,” so much so that the sale of spirits in Quebec through the state liquor board has grown by close to 30 per cent per year over the last five years. That’s from a very low base — just $8 million in 2010-11 — but my goodness, 30 per cent per year. So what do you do in the face of 30 per cent growth? You subsidize, of course. If an industry is having trouble in Quebec — think forestry — you subsidize it. But if it’s doing well, you subsidize it, too.

The budget also introduces new tax measures, $277-million worth, in furtherance of the government’s goal of making Quebec an “executive-driven economy” in which, as U.S. President Donald Trump might put it, “Quebec businesses are the predators … not the prey.” Suggesting CEOs should be in charge of anything is delightfully incorrect these days. But the trouble with CEOs is that if there’s a problem in their organization, they want to dive in and get their hands dirty. That’s fine for firms. But an economy doesn’t benefit — just the opposite — when government CEOs devise a policy for everything anyone at all says is a problem.