The Federal Government and Ottawa’s Economy: The Sky is not Falling

At the February 2012 official opening of Invest Ottawa (the City’s economic development / investment attraction agency),  Mayor Jim Watson stated,

“One of my priorities . . . was to establish Invest Ottawa to help attract more investment and foster greater economic growth in our nation’s capital. . . Recent headlines surrounding public service job losses underscore the need to diversify our local economy, and Invest Ottawa is going to help us do just that. Invest Ottawa is a clear commitment to inspire more entrepreneurs to build our prosperity to meet the challenges of today and tomorrow.”  (Invest Ottawa opening Mayor Watson))

Later in the year, the Mayor further elaborated in his 2012 State of the Economy address on the challenges facing the City resulting from the federal government’s austerity measures. He stated that “in this new federal government dynamic, we have the most to lose but we also have the most to gain”. To prevent Ottawa from becoming “a shadow of its former self”, the Mayor added that “we can no longer depend on the federal government to shelter us from [economic] storms or drive our economy … instead, we will construct a new economic engine … an engine that is more diverse – that runs on more than just one industry” (2012 State of the Economy link). This doom and gloom shows up even the City’s Economic Development Strategy stating that the local economy is in peril as a result to the federal government’s budget cutbacks.  Continue reading