Yesterday I wrote an article that took issue with MLA Derek Momborquette's political posturing in the Nova Scotia legislature. He suggested that Cape Breton is not "dying" and then gave a list of accomplishments or investments the government has made or is committed to making in Cape Breton.

Politicians and regular Cape Breton folks alike often buy into the idea that criticism is negative and that alone is what is holding us back from prospering as a region. While I see such responses as a typical tactic to avoid responding to valid criticism, I also recognize that it's easy to be dismissed as a naysayer. 

To add some authority to my argument, I simply pointed out (and provided a video) of the highly respected Senator Dan Christmas telling us that Cape Breton is dying.

My article yesterday discussed the idea of dying as an economic metaphor, and what it actually means in an economic sense if we try to define it. If we all think it means different things, our discussion won't be very helpful. Mombourquette used it as an appeal to Cape Breton pride; while Christmas used it as a reflection of how well (or not so well) we're doing economically.

My concern is that if we allow our local politicians to understate the severity of our plight, and let them protect their careers by buying us off with investments here and there, we won't be able to compel them to make the much bigger moves that we need.

One such move: Doubling the provincial equalization transfer of $32 Million to $64 Million, which would increase the CBRM's resources by about $16 Million dollars a year.

That would have an immediate and significant positive effect on the management and growth potential of our municipality.

When we do an honest assessment of where Cape Breton is headed, we need to look at the statistics. Unfortunately for us, the statistics are so obvious, it doesn't take an Economics degree to see what's happening. We might not be able to estimate how many centimetres of snow fell during some typical winter weather, but we certainly know when a blizzard is hitting us. As such:

• Population loss at about 1,000 people per year is fairly self-explanatory.
• 15.8% unemployment despite 1,000 fewer people to compete for jobs each year also gives a clear picture.

I believe most of our economic statistics are understated despite being bad already. As people leave, they are no longer included in the statistical assessment. 

Looking at Statistics Canada data, I realized that Cape Breton actually has the highest rate of insolvency in the country.

The rate is 10.2 per 1,000 people.

Once again, we have an economic indicator that shows us as being an extreme outlier, on the worst end of the spectrum across the country.

Insolvency means an inability to pay all of your bills and living expenses.

It pushes people towards either bankruptcy (losing almost everything to wipe the debt out and destroying their credit) or a consumer proposal (negotiating a reduction of debt based on ability to pay a reduced amount so creditors have some recovery and the person avoids bankruptcy).

While the North Shore, Annapolis Valley, and South Nova Scotia slightly edge us in the worst bankruptcy rates, Cape Breton leaps ahead on insolvency overall due to the very high number of consumer proposals that are submitted.

Businesses and even municipalities can become insolvent too.

It happens. Nova Scotia has several municipalities that could be heading towards dissolution. If they can't bring in enough revenue to take care of everything required, they become insolvent, and they cease to exist.

The CBRM is not in immediate danger of that happening, but that is absolutely the direction the compass is pointing long-term. Our most recent disastrous budget is just an early indicator of what is to come. It may not be a massive heart attack right now, but it's definitely a concerning numbness in the left arm.

NOTE: The views expressed above are my own and do not represent lokol (goCapeBreton.com). Read more