Quote:
Originally Posted by Flame On
Politically unstable?! Don't make me laugh. Am I the only one that's finding the mellowdrama coming from industry types to be laughable? Where were they in their concern when their industry lead to the countries highest inflation, or the increasing numbers of homeless people. The cherry picking of "moral fibre" is laughable.
|
Politically unstable as in the political whims of the province are not stable, and that they would be going from being pro-business laissez-faire (with already massive regulation) to an even more hands-on, punitive political jurisdiction. No one is talking juntas and coups here... but politicians playing economist means an unstable business environment. Period.
As for the rest of your argument... talk about a straw man argument. Yes, its all the evil oilpatch's fault for the increasing numbers of homeless... seeing as they are providing thousands of jobs for people who run the gamut of education from nothing to PhD for better than average pay? Homelessness is a societal malady, not an industrial one.
The primary reason this boom has devastated Alberta is due to political incompetence and a severe lack of foresight. Ralph Klein cut the hell out of the budget with the mentality that oil would never again breach $20/bbl. Something anyone who has even walked by a Hubbard curve would say is temporary, because supply is finite and prices will naturally increase... and they did over 5 fold from mid 1990s lows. Therefore, rather than building schools, hospitals, roads, LRT and encouraging TOD when the local economy was weak (and laborers NEEDED work) and putting less emphasis on debt reduction until the economics improved (then sitting back and paying off the debt)... they eliminated the debt (by slashing healthcare and education to the bone despite persistent population growth), and are now competing with private enterprise to catch up at a severe premium... so new developments, oil and gas projects (which are paying for all these overbudget improvements) and private construction are all progressing at a snail's pace. Condo towers and new communities are being delayed because there aren't enough crews. "Cause they're all in Fort MacMurray??" Sure, but what about the ring road, new CBE building, Rockyview expansion, Lougheed expansion, Children's Hospital, Glenmore Trail, etc.
Government projects decades overdue sucking up a ton of labor... and they are paying handsomely for it.
The result? Housing shortages and inflation.