Politics and Economics

It’s the Economy Stupid …

Ballad Of A Thin Man”, Bob Dylan, from the album “Highway 61 Revisited” (August, 1961)

Reviewing our Year End financials prior to discussing it all with our accountants. It appears that we lost money this year, the first year we have made a loss since year one of this pilgrimage.

Fortunately it is all still in the “paper loss” part of the ledger where the amortization of assets exceeded the net profits for the year. So far we can still pay the bills and put food on the table.

Alberta Premiere Rachel Notley

Alberta Premiere Rachel Notley

Two years into an classic NDP economic massacree and looking down the road I wonder how many more years of losses we will have to face while Rachel and her merry band of communists do their level best to destroy any semblance of an economy in Alberta, which Province once supported the healthiest economy in Canada.

One wonders what the “have not” Provinces will do (under Canada’s generous re-distribution scam) now that the Province which they were sucking the blood from has become a have not Province as well.

There is no Province left in Canada with a positive economy (that is, an economy in surplus) so is this the place where the Socialists discover that taking other peoples production only works as long as there is someone producing. Anybody? Anybody?

Move over E.U. and Venezuela, we need some room on the Group W bench for Canada. It should be an interesting time watching the biggest spending government in the history of Alberta implode as it tries to come to grips with running out of other peoples money. Interesting, that is, as in May you live in interesting times.

Carbon Tax, Electrical Generation Companies closing half their generation stations, Oil industry departing for more favorable venues, “Might as well move to B.C. now,” I heard one oil exec say. “If we’re going to get screwed, at least we’ll have an ocean view.”, royalty reviews, higher taxes on business. Hello, Saskatchewan and North Dakota, said the oil companies to Alberta — don’t let the door hit you in the face on our way out.

Now, let’s look at expenditures. There’s already $103 million to education, plus a reversal of all cuts announced by the Tories (much of this goes to pay teacher salaries, the highest in the country for the lowest quality of education). Then there’s keeping open the costly young offenders’ centre in Calgary, which, will now leave two half-used, expensive facilities staffed with government employees.

4 horsemen of the ApocalypseAnd then there’s the restoration of 1,600 were-soon-to-be-laid-off employees of Alberta’s health-care system (the most expensive, and among the worst performing in the country). And 2 years of new NDP hiring all taken together is heading past the 3000 new government jobs level. That’s why Edmonton booms while the rest of Alberta is in it’s death throes. But that is where the votes are, right Rachel?

That’s just the start of the many campaign promises now being fulfilled on the backs of producers. These include tuition freezes, lunch programs, smaller classes, more health-care coverage, a cut in school fees, more beds, more home care in case you don’t want those beds, job creation for unemployed youth, support for wind power (German Companies are singing) and small breweries (AUPE loves their beer, right?) — just basically more of everything.

What’s noticeable about this equation? The ones who generate the wealth, who take the risks, and make the investment — those on the black part of the balance sheet — are in the dumper, while the gains are all to the mainly unionized, revenue-draining red side of the balance sheet.

AUPE is running Alberta. Does this all sound like the kind of expenditures you would make when all the economic indicators the rest of the universe uses to make smart decisions about budgetary issues are all pointing in the other direction? Obviously, it is easy to spend other people’s money and of course, maybe, maybe, even the Socialist NDP sincerely believe they are helping people …  they take their collective actions all “with the best of intentions” … but as C.S. Lewis opines:

“Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.”
– C.S. Lewis

Not exactly the 4 horsemen but for a modern western economy, totally dependent on energy and exports it is about as close as one gets.

Cheers

Joe

Blind leading the blind over the cliff edgeStupid is as stupid does

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