Quote:
Originally Posted by Slava
I don't know what you do, but I get the impression you work in finance somewhere, so let me ask you this. I think we can agree to accept that since 2008 (1/2 way through or so) the economy has been recessed and government revenues have dropped. From there it makes sense that as things recover government revenues will follow suit...there is evidence to that end as we speak.
So if the revenues get to the point where we are again running a balanced budget and have no debt in Alberta (which isn't exactly pie in the sky forecasting) would you change your position that the spending is out of control?
I'll lay my cards on the table first. I'm not terribly pleased with how the money has been spent. Even given that though a lot of the WRA/WAP or whatever they're going on this week strikes me as sort of flavour of the month. Its basically predicated on the recession and those conditions continuing ad infinitum. Its basically a "we can't afford it" line, which is fine when times are tough...but does that hold as times improve?
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I work in oil and gas, finance is just an interest. I might make a career transition at some point.
I would of course stipulate that the economy has been bad, and that revenues are likely to increase. Oilsands projects are starting to reach payout, which will cause an increase to non-renewable resource revenues. I'd like to think the WRA is more nuanced than that, and that the idea is "we should only spend money we need to spend, and spend it smartly" rather than "we can't afford it." That's my opinion, but I'm not directly affiliated with the party in any way, so can only go by what I've read in the policy documents.
Ultimately, per capita government spending in Alberta is much higher than other provinces. Per capita program spending was $10,431 in 2009, compared to $7264 in Ontario and $9270 in Quebec.* Some of that difference is due to past success. Because we spend less on debt, we have more for other spending. I think we should be able to at least hold the line on spending, limiting it to population growth/inflation.
The Wild Rose party may go the way of other "protest" parties (Alberta Separatists, etc) or it may go the way of the federal Reform party. The next election is likely to be decisive on that score, imo.
*
http://policyschool.ucalgary.ca/file...icy/albsp2.pdf Numbers from 2009 were all I could find