Quote:
|
Originally Posted by Fozzie_DeBear
1) I'm not sure where we are going on point 1, I agree the demand for 'the trades' type jobs are what in most demand now. All I am saying is that the downside to an economy that is able to lure young people out of school is that you may have a less educated population down the road.
2) I don't see the evidence that a flat tax does anything in particular (in Alberta) to diversify the economy. If anything I think that many factors have come together to create a 'market failure', basically energy investments are so sweet right now that they are sucking the capital away from other sectors like young high-tech companies (which is also inefficient b/c we spend major $$$ that should be resulting in more high-tech companies). Furthermore, the 'flat-corporate tax' is a bald untruth as energy companies recieve tax subsidies for some of their exploration and exploitation costs. I think that a well-managed tax break for investing in non-energy high-tech companies would be a wise intervention, OR the goverment should stop nursing the energy industry, I think they can handle themselves at ~$60 a barrel.
3) As was said earlier by another poster, diversification makes sense. Especially long term strategic diversification, which the government is thinking and talking about...but aren't doing enough to initiate. I don't think that leaving economic policy to market forces is always smart, it is the easiest way to run things though.
4) I agree that the gov should be creating a good business climate, I also think that the gov has to make sure that whatever economy is left over when the energy sector dips (and it will), is strong and established and the time when we can afford to develop that is when the sun is shining.
|
Fozzie, first off, I appreciate that you have been keeping this discussion above board... no reason for those with differing opinions to result to insults and attacks.
1) Are some youth being lured from school into industry... most likely. However it would seem that there are plenty of other youth who may not have chosen to attend school previously who are now filling those spots. Until I see reduced post-secondary entrance and graduation rates I am not worried about this. Besides, there is no reason to beleive that these bright kids can't make a good living and contribute to society in the skilled trades.
2-3) Bring me a business plan trying to raise 10 - 15 million for a non-resource related company that couldn't be situated better in another region. Face it... O&G is too attractive right now to focus capital in other areas that are not providing the same upside.
Is a diversified economy a good thing? It certainly could be argued that it is. However, I am sceptical that governments can stimulate diversity in the current environment in a cost effective and sustainable matter.
When oil is $20 again there will be a much stronger economic incentive for diversification than
anything the gov't. could dream up right now (whatever happened to that magnesium plant by High River anyways?).
4) The gov't is debt free and in much better shape than any other regoin to survive an economic bust (spending levels are worrysome however... but those could always be Ralph'ed again if needed).
In a bust situation there will be a glut of skilled and/or educated labour allowing other industries to establish themselves (like what has happened previously). I still see no need for the gov't to artificially motivate the already highly efficient flow of investment capital.
Those of us currently enjoying the fruits of the boom need to personally ensure that we are going to be able to handle any future downturn(s). Gov't meddling rarely makes any of these situations better, and frequently makes them worse.
Best regards,
~bug