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Originally Posted by Slava
Well do you think that the collapse of the price of oil and the provincial reliance on that for our economy explains almost every point there? I'm sure that 2008 had a similar impact, so how do you explain that without the NEP to fall back on?
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No, I dont.
The huge drop in oil didnt come in until the NEP was no longer in effect. yes it started downwards shortly after the program was implemented, and would have had some effect on the Alberta economy, but not to the degree that we saw.
This is from Wiki but it explains it just as it was always explained to me...
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the decline in world crude oil prices that began only a few months after the NEP came into force, the graph of long-term oil prices show that prices adjusted for inflation did not drop below pre-1980s levels until 1985. Given that the program was cancelled in 1986, the NEP was active for five years which are amongst the most expensive for oil prices on record and the NEP prevented Alberta's economy from fully realising those prices
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And to put some perspective on it...
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It has been estimated by a number of different scholars that Alberta lost between $50 billion and $100 billion because of the NEP
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At the time Albertas entire population was just North of 2.2 million. Think about that.