A Better Business Model

Toronto is not, nor should we try to be, the location with the lowest cost. Instead, we must strive to be the location providing the highest value.

moneytimevalue

Thus spoke (actually, wrote) mayoral hopeful David Soknacki, a week or so back during his Reddit AMA. (Embarrassingly, I had to Google to find out what AMA stood for. Ask Me Anything, in case you’re still wondering.) It’s a quiet but very important point that needs emphasis in this municipal era of finding waste and efficiencies, cutting taxes and generally trying to get by with less. It is a statement that warrants continued consideration of the Soknacki campaign.

I am not a business guy. In fact, you might even consider me hostile to the veneration of business as the building block of society. Or is that even a thing? Certainly, simply because someone has excelled in the business-y private sector in no way translates for me into an immediate assumption of possessing a capable hand for governance. creatingvalueIn fact, history throws up plenty of examples of just the opposite being true.

Government in no way operates like a business. Just as I’d imagine business in no way operates like a government. They serve different purposes and provide different needs. The skill sets necessary to function properly within each entity have to be distinct, complimentary perhaps, but not exact.

This does not mean the two should be adversarial. In fact, I’d argue there needs to be more intersection and interaction between the institutions of government and the private sector beyond players in either camp switching sides every now and then. Does that make any sense? Like I said, writing about business feels like I’m skating out on thin ice.

It is my belief that we have operated for too long under the business-friendly mantra of governments just needing to get out of the way and let business do its thing, unencumbered by red tape, regulation and onerous tax rates. We have taken for granted the contributions governments make in order to create business friendly conditions. Governments educate us. Governments endeavour to keep us healthy. betterservicelowercostGovernments pay for the infrastructure that eases the mobility of people and goods in such a way that business is given opportunities to flourish.

Does it always do any of this in the most efficient or best way possible? No. Nobody here’s saying government is perfect. Not even close. There should be constant vigilance in making sure government works to the optimum for the greatest number of people.

We cannot expect that to happen while starving it of its ability to do so.

That’s why taxes are not fundamentally evil. That’s why having the lowest taxes doesn’t automatically translate into the best business environment. Lower taxes will not inevitably lead to a city being more affordable, liveable or functional. Value isn’t determined solely by opting for the guaranteed bargain basement price.

Nobody makes even the most basic decisions based on one variable, do they? You don’t go to a restaurant just because it’s the cheapest, do you? Who buys only remainder bin books? Even the data plan for you phone isn’t determined purely on the price, is it?

So who moves to a city, as an individual or business, for the sole reason that it has the lowest taxes?attraction

Aren’t there a bundle of factors that figure into the calculation? How easy is it to get to where you need to go? How good are the schools? Are there fun things to do within close proximity? Is it, at the end of the day, a positive experience living and/or doing business in a particular city?

Taxes are but a part of that equation.

Or, in the words of David Soknacki, we must strive to be the location providing the highest value. Value, like taxes, shouldn’t be a dirty word.

In the 30 seconds he was given to inspire the city at the end of Tuesday’s Metro Morning, David Soknacki summed up his vision like this:

I want to reform City Hall where we’re going to be making decisions based on consensus and on facts, and make it representative of our voices and priorities. That in turn will enhance our prosperity, and that in turn will enhance our quality of life.

I’m always a little leery of those putting prosperity before the idea of quality of life. I get it. I’m not a complete idiot. You can’t build anything positive with only good intentions and rainbow hopes. Money makes the world go around.

But isn’t it also possible to strive for prosperity by improving our quality of life first? By any measure you take, Toronto is a rich city. Investing now in infrastructure and other fundamentals of the public realm will invariably enhance our quality of life, as Mr. Soknacki wants to do, and attract more people and businesses and investment here, all vital to enhancing our prosperity.

alexanderdumas

A prosperity that isn’t just about having more money in our wallets. A richness more encompassing than adding up the dollars and cents. A value that goes beyond being respected as a taxpayer and puts as least as much emphasis on a way of life as it does a way of doing business.

business friendly-ly submitted by Cityslikr

2 Responses to A Better Business Model

  1. Sonny says:

    Pennachetti who manages the City makes $363,234.14 and fails to add the numbers accurately…

    Another progressive Italian; Rosario Marchese hosted a karaoke night at the Tranzac on Thu.

    It was after news of the Liberal cover up of emails emerged.
    I mentioned to the tabler that they were 1 seat away from a majority.
    He said Trinity Spadina was the seat to stop them. Which is right because Sarah Thomson made it close.

    By donating some money to the pitcher he would sing I even got in a few songs and got to meet Joe Cressy likely ND nominee and another potential candidate. Sang this

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