This is getting interesting.
Carrying on where I left off, in my four part series called “sober-second-thought-part-4” I was withholding judgement and holding my breath.
Now it is becoming more apparent that the true colors of the new socialist government of Alberta are starting to show through. Here we have a quick precis of an article from the Calgary Herald.
Published on: June 1, 2015 Last Updated: June 1, 2015 3:00 AM MDT
No assessment of the provincial balance sheet, no budget, no plan to fix the most expensive and poorest performing systems in the country.
The new Alberta government is committing to still more large tranches of tax dollar spending and reversing past PC cuts and future planned cuts, as the Premier starts to pay the voters who put her there.
So what are we seeing?
- An Alberta recession is unavoidable (Conference Board of Canada)
- Small business confidence has dropped to the lowest in the country (Canadian Federation of Independent Business).
- Low oil prices, that are unlikely to recover any time soon.
- Depressed manufacturing, retail and financial sectors that are all under-performing against a national index (CFIB again).
- Increase in the minimum wage to $15 by 2018, an unprecedented rate (excepting Greece),
- A royalty review, which spun the economy into a tailspin the last time it was threatened,
- An increase in corporate taxes,
- Carbon tax regulation which will do nothing meaningful, but serve as yet another deterrent to doing business here,
- Oil companies response amounts to : “Hello, Saskatchewan and North Dakota, said the oil company to Alberta — don’t let the door hit you in the face on our way out”.
What about extra expenditures:.
- There’s already $103 million to education,
- Reversal of cuts announced by the Tories (much of this goes to pay teacher salaries, the highest in the country).
- Keeping open the costly young offenders’ centre in Calgary,
- The restoration of 1,600 were-soon-to-be-laid-off employees of Alberta’s health-care system (the most expensive, and worst performing in the country). and …
- tuition freezes,
- lunch programs,
- smaller classes,
- more health-care coverage,
- a cut in school fees,
- more hospital beds,
- more home care
- job creation for unemployed youth,
- support for wind power and small breweries .
Important Note: All those folks on the black part of the balance sheet – the Makers – are in the dumper, they have become prime targets.
All the announced gains are to the mainly unionized, revenue-draining red side of the balance sheet, all the Takers, the vampires.
Rhetorical question: Once you eat all the Makers, what happens then? This approach is why socialist and communist governments everywhere have never proven to be sustainable over time. With all the union representation that’s taken over in the new Alberta government, it’s AUPE (Alberta Union of Public Employees) first, ask questions later.
This math just does not add up. Nothing done by the government so far decreases my fiscal anxiety about where the province is going next.
“Might as well move to B.C. now,” one oil exec says. “If we’re going to get screwed, at least we’ll have an ocean view.”
I’m staying right here to ride our the coming storm. I don’t see any jurisdiction in significantly better shape than Alberta and I think we can hunker down and outlast them, it’s only four years … how bad can it get?
Keep paying down debt and keep fixing what we have and wait, and while we are waiting we will pray to the God that the socialists refuse to believe in.