Well.
The next budget being rendered by the Alberta government promises yet another deficit.
Think about that, just for a moment.
Average price of oil in 2011 was $87.04 per barrel.
The average price of oil between 2000 and 2010 was $47.93 per barrel.
Ignoring inflation, that means that the current price of oil is almost twice it's average price in the last decade.
And yet.
We are preparing for the third straight deficit, which financial experts suggest will be in the area of $2 billion... which might be reduced by cancelling capital projects (read refusing to maintain infrastructure).
Incredible.
The most fiscally blessed province in Canada, a government which a scant few years ago was swimming in fiscal surplus, has now run up four consecutive budget deficits.
And yet - we still are promising increases to teachers, to AISH, and others.
As our future savings are depleted by profligate spending, we are told, "Don't worry, we'll balance the budget later.."
Still, Albertans are poised to re-elect the same crew that has made all of this happen. Presumably, the harsher pill offered up by the Wild Rose Alliance isn't yet palatable to the average Albertan. Maybe a few more deficits and increased taxes will change their tune in due course.
There is no free lunch.
Every benefit has a cost.
And the suggestion that we pass it on to "corporations" is extremely naive.
Because corporations exist to create profit. As expenses go up, corporations seek to offset that by reducing costs - either increasing prices to the consumer or reducing expenses (wages, benefits). And when those steps aren't successful, they reduce dividends - and that reduces the value of their shares, and that, my friend, reduces the value of your RRSP's.
So - you can pay the tab now, or pay it later.. but my fellow Albertans, it will be paid.
Me? I'm closing in on retirement.. so, selfishly, I suppose, we support Ms. Redford, look the other way at continued deficits, and let our children and their children worry about it.
Though one might just wonder how the culture of the entitled might react to a burgeoning retirement population creating a massive social service deficit, and then leaving the tab for the next generation to pay.
Might not be pretty.
4 comments:
Danielle Smith was interviewed on the SUN Network, about an hour ago ... video here.
Near the end, she responds to a question about the type of campaign Wildrose will run.
This woman is one impressive politician !
How many TV's and cash give aways is the Wild Rose party going to give away to buy votes. Face it with the price of natural gas down now things will be tough, but it will rise, this is the main reason the province is in debt. Danielle Smith is a puppet for the Oil companies, everyone outside of Calgary can see this.
The budget has all the ear marks of the Dick Johnson budgets of yore. We didn't run a deficit our actual revenue just didn't meet our expected revenue.
These deficits are not going to end any time soon. The new PC-Lib Party has too many mouths to feed now that the public sector bureaucrats, unions and the ATA have elbowed their way to the best seats at the PC head table. I wonder if the old style barnacle PC’s are feeling a little put out and a little concerned that they’ll be frog marched to the back of the Gravy Train and then cut loose after the upcoming election. They should.
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