There still seems to be some confusion on the street about how the economy works and where prosperity truly comes from.  The answer is straightforward: a strong economy is built by a strong private sector. Businesses, not governments, create jobs, generate wealth, and produce the revenues that allow governments to deliver public services that we all rely on so heavily.

 Every day, across our communities, businesses make millions of decisions. From small Main Street shops to global exporters, entrepreneurs take risks, invest capital, hire workers, and innovate. These decisions drive productivity, wages, and economic growth. When businesses succeed, they expand. When they expand, they create jobs. When people are working, earning income, and spending in their communities, governments can collect taxes that fund healthcare, education, infrastructure, and social programs.

In other words, government does not create the economic engine, it relies on it.

Government plays a vital and necessary role. By setting fair and predictable rules, investing in infrastructure, and creating certainty and confidence for investment, government can support private sector growth. What it cannot do is sustainably replace it. Without a healthy private sector, there is no durable tax base to support public services over the long term.

Recent analysis underscores why this distinction matters. Reports from the Fraser Institute[1] have highlighted a concerning trend: government employment growth has outpaced private sector job creation in recent years. While public sector jobs are important, this imbalance is not a sign of economic strength. A growing public sector without corresponding private sector growth places increasing pressure on a shrinking pool of taxpayers and businesses.

This dynamic is especially challenging in regions like our in Atlantic Canada, where demographic pressures, labour shortages, and slower population growth already constrain economic capacity. If businesses are struggling to invest, expand, and compete, the entire system becomes less sustainable. Over time, this can lead to higher taxes, reduced competitiveness, and fewer opportunities for the next generation.

When businesses grow, communities grow with them. That growth allows governments to focus on what they do best: enabling opportunity, protecting the public interest, and investing in long-term foundations for prosperity.


The Path Forward
The path forward is clear. Policymakers must prioritize conditions that support private sector investment and job creation, competitive tax policy, efficient regulation, workforce development, and modern infrastructure. Doing so strengthens the economic engine that benefits everyone.