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Originally Posted by lozen
I do agree with you 100 % lots of irresponsible governments over many years. Though Ralph Klein told the truth to Albertan's. You cant spend more than is coming in .
That actually has been proven very false.
Countries and Provinces can and should spend more than they take (deficit) when cost of borrowing is low to build out infrastructure and invest in other areas of growth, where the return more than pays for the incurred debt. But then they need to spend less (pay down debt) when costs of borrowing are very high.
This used to the accepted wisdom but then Parties realized it always sucked to be the party of austerity, belt tightening and 'we need to take our medicine' if they got into power in 'bad' times and had to force the people to tighten up.
People might take that medicine but they surely will not remember fondly (vote) the party that made them do it.
That is why you see the Republicans try to blast all the money out and maximize debt when in power, no matter the circumstances as they know citizens look at it fondly and they hope to force the Dem's, when they take over to have to try and right the ship, by tightening spending (getting ill will).
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No one wants to tell Albertan's the truth. We need a sales tax and can not afford two education systems or to have the highest paid doctors, teachers and nurses and Public Sector Employees
agreed.
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Though 17% of Canada's GDP comes from resources. I am not sure were the country makes that up
Norway is the template. I think they get even more of their GDP from resources and they too got a terrible scare when Oil and Gas cratered in 2008 and then again in 2013.
Their government, seeing resource as the gravy train, used to pile all their subsidy money into that sector to add profits to profits. Now they report no govt' subsidies will go to oil and gas and all will got to diversification.
Notley had started tilting that way setting up nice tech subsidies for the Tech Sector Investors to take risks in that area and it was working. Edmonton quickly became one of the worlds leading AI Tech hubs with the UofA ranked 3rd in the world for AI.
We had the beginnings of a tech footprint rapidly forming with Google and Huawei and other companies setting up AI hub companies in Edmonton.
Jason Kenney campaigned on reversing that and instead plowing all the subsidy back into Oil and Gas, as a way to buy the votes of that large 'sunk money' powerful group who were desperate for a hoped for next 'boom'.
And the Tech sector investments dried up almost immediately to devastating effect.
In all my time in AB I would hear from those who had lived there all their lives that 'Oil and Gas is always cyclical. Always ups and downs. You just have to hang on and survive to the next UP and you will do well'.
That belief is what is crippling the Province. They demand gov't go All In on keeping them afloat until the next Oil Boom, because it always eventually comes back. But I don't see it coming back. So they are just throwing good money, after bad, in this triple down strategy. Unlike Norway that is focused on using that resource wealth to ensure they are not stuck tomorrow being dependant on it.
What Ireland did to build their tech sector is what AB, to a lesser extent should have focused on to make it Canada's AI hub.
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Curious if Alberta Governments spend spend saddling their kids and grandkids with the debt . What do you think Justin Trudeau is doing?
Can you re-write these sentences. I am not sure what you are asking or saying with either.