There are chinks in Harper’s economic armour

[Harry]

It seems that our Canadian economy is based on short term gain for long-term pain. And that's quite shocking if no money has gone into Alberta's Heritage Fund since 1987.

There are chinks in Harper’s economic armour

Although Harper is riding smugly high on those pollsters’ virtues of competence, trustworthiness and vision, mainly because the public isn’t looking as long as the economy is good and the opposition is fractured, he’s actually riding an unstable bubble that could pop any time.

Here are a few sobering insights from the British- and Montreal-based consulting firm MRB Partners, fished from Wednesday’s Globe and Mail. Canada has some "alarming structural imbalances building," the firm warned investors. Canada’s record in taming the deficit is "terrible" given its commodities boom, it says. Plus, Canada’s exports outside the oil and minerals sector are increasingly not competitive.

Since the political debate is unfocused and muddled, let us ask this question for ourselves: What exactly is Harper’s economic "vision" that is so immune to attack? We’ll find that it is just that: speak in prime ministerial tones and hope the illusion doesn’t pop before the election. But it has deeper roots.

When Harper returned from visiting former President George W. Bush and company in Texas a few years ago, he proclaimed Canada was the new "energy superpower." At the heart of the scheme is Alberta’s oil — and the whole "Alberta economic model," which he had touted long before becoming prime minister as something other provinces should emulate, instead of pursuing the "socialistic" and the "second-rate." And, lest we forget, the Atlantic provinces had an active "culture of defeat."

Alberta’s economic status is a nearly taboo subject, like Quebec’s constitutional status, (which did break out meekly at public prodding in the French debate). After all, our young people flock to Alberta for the high-paying jobs. What would we do without them? Is this not a clear plus, as long as we don’t get queasy about the environment and Canada’s international black eye over the tarsands?

Alas, despite the huge wealth of its oil boom, the Alberta government is all but bust: deficits in the billions, schools and hospitals being cut back to pinch pennies, inadequate infrastructure, and accumulated oil money from the past being depleted to pay the bills. All this is the result of basically giving it away to oil companies — in the middle of a resources boom

http://thechronicleherald.ca/Opinion/1238551.html

Edited April 17, 2011 by Harry

[Shady]

You're suppose to provide a link to material you're referencing. And you're suppose to have something to say about it.

[Harry]

Alberta governments have been hell bent on destroying the future of its citizens which is quite short-sighted and not necessary. Too bad.

Alberta's Oil Wealth and the Big Question for Harper

PM's favourite province squandered its petro profits like a 'banana republic.' Is this any way to run an economy?

Harper's bragging about Alberta

Alberta is closer to a purely conservative experiment in economic policies than any other part of Canada. Stephen Harper has held up the province as a shining example the rest of Canada should envy. In one famous example, in December 2002, Harper wrote an article in the National Post headlined "Separation, Alberta-style" in which he declared:

"Alberta has opted for the best of Canada's heritage -- a combination of American enterprise and individualism with the British traditions of order and co-operation. We have created an open, dynamic and prosperous society in spite of a continuously hostile federal government." The other provinces should emulate Alberta, he said, but "Canada appears content to become a second-tier socialistic country, boasting ever more loudly about its economy and social services to mask its second-rate status.”

How to square this with Allan Warrack's grim assessment of the legacy of Alberta's abundant resource wealth? Does the Alberta government's undermining of the Heritage Fund and soft-dealing with corporations at the expense of taxpayers provide a glimpse into Canada's future under continued Conservative rule?

http://thetyee.ca/Opinion/2011/04/13/HarpersBigQuestion/

Edited April 17, 2011 by Harry

[wyly]

compare alberta heritage fund with norway's pension fund...main resource for both oil, population alberta just under 4 million, Norway just under 5 million....alberta heritage fund $13 billion, norways pension fund $513 billion...those nordic socialists obviously have no financial ability

[kimmy]

Alberta's disappointing use of its oil royalties isn't the business of any federal party.

-k

[bloodyminded]

...........

Edited April 17, 2011 by bloodyminded

[Tilter]

So, where did the rest of the heritage fund go? My bro lives in Alberta and he is really pissed at Stelmach but I never did ask where the billions went. Albertans bitch about poor schools & medical assistance but if the money's not going there WHERE???

[wyly]

Alberta's disappointing use of its oil royalties isn't the business of any federal party.

-k

it addresses the issue of conservatives being touted as superior financial managers to socialists of which members of this forum point to socialist nordic countries as economies in the toilet...and harper bragging about alberta's economic security due to conservative rule...conservative rule in alberta is a disaster,it's all about living in the moment and screw the future because oil will never disappear or lose it's value...norway obviously disagrees, they've planned for the future when oil runs out or loses it's value when it's is replaced by clean energy...

[blueblood]

it addresses the issue of conservatives being touted as superior financial managers to socialists of which members of this forum point to socialist nordic countries as economies in the toilet...and harper bragging about alberta's economic security due to conservative rule...conservative rule in alberta is a disaster,it's all about living in the moment and screw the future because oil will never disappear or lose it's value...norway obviously disagrees, they've planned for the future when oil runs out or loses it's value when it's is replaced by clean energy...

Oh stop the madness. Stat oil which is a govt entity enjoys a lot more govt support than oil companies in canada. That's why there is so much money in norway's kitty is that the profits go to the govt. As a result norweigans are paying an opportunity cost of epic proportions. It is much harder to get rich out there. There are no lifted up trucks or 3000 sq. Ft homes. Why is it so many immigrants prefer to come to north america vs the nordi countries?

The opportunity for any one person to get ahead and become rich is worth far more than a 500 billion dollar kitty. Its free to succeed and free to fail. And judging by albera, bc, and sk's success of lowering taxes and have an increasing prosperity is proof that the low tax model works.

[Smallc]

And judging by albera, bc, and sk's success of lowering taxes and have an increasing prosperity is proof that the low tax model works.

Except that those places were able to lower taxes because of oil, gas, and potash money, not the other way around. The lower taxes were a result (and Saskatchewan still has high taxes for single individuals).

[blueblood]

Except that those places were able to lower taxes because of oil, gas, and potash money, not the other way around. The lower taxes were a result (and Saskatchewan still has high taxes for single individuals).

Your right, and that's why I brought up those places because of the discussion of norway and its oil and gas situation.

Still we have mb and ontario lowering taxes as well without oil...

[Smallc]

Still we have mb and ontario lowering taxes as well without oil...

Actually, despite their lesser ability to raise revenue (hence being have not) Ontario and Manitoba have very similar per capita GDPs to BC...though they're not even close to the numbers that Alberta and SK pump out. I took a whirlwind trip through both provinces over the weekend...wow, the money there is incredible.

[Evening Star]

Oh stop the madness. Stat oil which is a govt entity enjoys a lot more govt support than oil companies in canada. That's why there is so much money in norway's kitty is that the profits go to the govt. As a result norweigans are paying an opportunity cost of epic proportions. It is much harder to get rich out there. There are no lifted up trucks or 3000 sq. Ft homes. Why is it so many immigrants prefer to come to north america vs the nordi countries?

The opportunity for any one person to get ahead and become rich is worth far more than a 500 billion dollar kitty.

I guess this is the crux of our disagreements. I definitely don't think it's madness to have different priorities than "lifted up trucks or 3000 sq. Ft homes".

[Smallc]

I guess this is the crux of our disagreements. I definitely don't think it's madness to have different priorities than "lifted up trucks or 3000 sq. Ft homes".

3000 sq ft homes are alright (ours is almost that), but lifted up trucks are just in bad taste.

[ToadBrother]

Oh stop the madness. Stat oil which is a govt entity enjoys a lot more govt support than oil companies in canada. That's why there is so much money in norway's kitty is that the profits go to the govt. As a result norweigans are paying an opportunity cost of epic proportions. It is much harder to get rich out there. There are no lifted up trucks or 3000 sq. Ft homes. Why is it so many immigrants prefer to come to north america vs the nordi countries?

The opportunity for any one person to get ahead and become rich is worth far more than a 500 billion dollar kitty. Its free to succeed and free to fail. And judging by albera, bc, and sk's success of lowering taxes and have an increasing prosperity is proof that the low tax model works.

Trying to assert Norway's standard of living is lower than Alberta's is laughable.

Do you even read some of the utter crap you type?

[bush_cheney2004]

Norway was the largest per-capita recipient of Marshall Plan dollars after WW2....Alberta didn't get anything!

[blueblood]

Trying to assert Norway's standard of living is lower than Alberta's is laughable.

Do you even read some of the utter crap you type?

That depends on what metrics a person uses as a standard of living. Some people use the average on what services they get, or being comfortable, others use the metrics of the opportunity to improve one's self and the luxuries a person gets when one improves themselves.

[Smallc]

Trying to assert Norway's standard of living is lower than Alberta's is laughable.

Alberta actually is quite a lot richer (per capita GDP is about $20,000 more) than Norway. Alberta is similar to Luxembourg. Norway is more in line with Saskatchewan or Newfoundland and Labrador (believe it or not, they are one the richest provinces per person now).

[Blizko]

It seems that our Canadian economy is based on short term gain for long-term pain. And that's quite shocking if no money has gone into Alberta's Heritage Fund since 1987.

There are also chinks in Harper's defense armour. Turns out the fighter jets will only be partially ours. That's right. The Pentagon is maintaining the operation codes, meaning certain invaluable features can be disabled by the US from remote locations. How can you possibly use a system of defense that basically relies on permission of another country? Doesn't make sense, especially for a price tag in the billions. Things like radar can just be shut off by a foreign government. And what about hackers?

"An issue that affects all the international partners in the F-35 involves access to the computer software codes for the aircraft. The F-35 relies heavily on software for operation of radar, weapons, flight controls and also maintenance. The US military has stated that "no country involved in the development of the jets will have access to the software codes" and has indicated that all software upgrades will be done in the US. The US government acknowledges that Australia, Britain, Canada, Denmark, Italy, the Netherlands, Norway and Turkey have all expressed dissatisfaction with that unilateral US decision. The UK specifically indicated they might cancel its entire order of F-35s without access to the coding, without which the nation will be unable to maintain its own aircraft. Allen Sens, a defence analyst at the University of British Columbia stated in November 2009: "What has happened is really quite unusual because we're talking about some of America's very close allies. You would have thought they could build in some maintenance codes that could be accessible to their allies." Sens indicated that the decision could be as a result of concerns about software security and also pressure from Congress to protect jobs in the US.[12]" (Wikipedia)

http://www.todayszaman.com/news-237992-code-crisis-overshadows-turkeys-planned-purchase-of-f-35-jets.htm

[wyly]

Alberta actually is quite a lot richer (per capita GDP is about $20,000 more) than Norway. Alberta is similar to Luxembourg. Norway is more in line with Saskatchewan or Newfoundland and Labrador (believe it or not, they are one the richest provinces per person now).

2008 alberta's per capita gdp was $52,800-hrsdc.gc.ca...norway's GDP-2009 was depending on the source ranged from 52,000-IMF to 59,000-CIA...plus they have 500 billion dollars more put away for future use...

[Guest peterb]

Iggy's Viagra Campaign Rise Up Rise Up

Not too long ago another Liberal Leader told us, government had no business in the bedrooms of Canadians, but I suspect Canadians were brought as close to the sounds of Iggy's boudoir, as they are ever going to get, at a campaign rally in Sudbury, where he made the rafters ring with his arousing screech to a crescendo of Rise Up - Rise Up - Rise Up.

Can we be forgiven if our instinct tells us that sounds eerily like someone waiting in overwrought anticipation of results, after ingesting a small purple pill . The line was delivered with such artistry, who could not believe that the line was not rehearsed many times.

It is also a reminder of another time at a Liberal leadership convention when Ignatieff attacked Dion for his failure to deliver as environment minister "You didn't get the job done" ( Little did we know then that these were also boudoir lines maybe rehearsed many times as well)

Dion's reply then, which appeared to be just some mumble jumble of words at the time, maybe had a ring of truth and familiarity, when he said "you think it is easy being hard" or words to that effect.

Our only fears are that if Count Ignatieff ever gets in a position of power, that he addresses taxes for Canadians with the same invigorating command of Rise Up Rise Up . Fortunately that is unlikely to happen, purple pill or no purple pill, and the Count's loyal subjects don't appear to be responding to his command from on high, according to the polls.

[wyly]

Iggy's Viagra Campaign Rise Up Rise Up

Not too long ago another Liberal Leader told us, government had no business in the bedrooms of Canadians, but I suspect Canadians were brought as close to the sounds of Iggy's boudoir, as they are ever going to get, at a campaign rally in Sudbury, where he made the rafters ring with his arousing screech to a crescendo of Rise Up - Rise Up - Rise Up.

Can we be forgiven if our instinct tells us that sounds eerily like someone waiting in overwrought anticipation of results, after ingesting a small purple pill . The line was delivered with such artistry, who could not believe that the line was not rehearsed many times.

It is also a reminder of another time at a Liberal leadership convention when Ignatieff attacked Dion for his failure to deliver as environment minister "You didn't get the job done" ( Little did we know then that these were also boudoir lines maybe rehearsed many times as well)

Dion's reply then, which appeared to be just some mumble jumble of words at the time, maybe had a ring of truth and familiarity, when he said "you think it is easy being hard" or words to that effect.

Our only fears are that if Count Ignatieff ever gets in a position of power, that he addresses taxes for Canadians with the same invigorating command of Rise Up Rise Up . Fortunately that is unlikely to happen, purple pill or no purple pill, and the Count's loyal subjects don't appear to be responding to his command from on high, according to the polls.

an intelligent poster would've put this in the proper thread

[August1991]

compare alberta heritage fund with norway's pension fund...main resource for both oil, population alberta just under 4 million, Norway just under 5 million....alberta heritage fund $13 billion, norways pension fund $513 billion...those nordic socialists obviously have no financial ability

Nordic socialist?

Norway is not a member of the EU and so makes no contribution to any European fund. Norway does not use the eruo. For example, Norway will not pay any money to a Greek bailout.

Albertan taxpayers OTOH write cheques to the federal government including large sums for equalization.

So, who in fact is the socialist?

[Evening Star]

Nordic socialist?

Norway is not a member of the EU and so makes no contribution to any European fund. Norway does not use the eruo. For example, Norway will not pay any money to a Greek bailout.

Albertan taxpayers OTOH write cheques to the federal government including large sums for equalization.

So, who in fact is the socialist?

What seems more important is the fact that ownership of a key resource is under public ownership control in Norway. Isn't that more fundamental to the definition of socialism?

[August1991]

What seems more important is the fact that ownership of a key resource is under public ownership control in Norway. Isn't that more fundamental to the definition of socialism?

The Albertan government owns the resource and collects royalties from its exploitation so there is no practical difference. We can argue about whether Albertan royalties are too low but for the most part, Albertans benefit from the resource.

There is another significant fact: the price of gasoline in Oslo (about 4$ per litre) is similar to other world cities. IOW, Norway sells its resource to its own citizens at the same price that foreigners buy it. This means that Norwegians don't waste this valuable resource.

Compare that practice with socialist Venezuela (where gasoline is about 2 cents per litre) or even Quebec which sells its electricity at home for less than half the price people in, say, Boston pay.

----

Norway is truly unique. It has oil and natural gas like Alberta, and it has hydro resources like Manitoba or Quebec. They have established political institutions.

IMHO, Norwegians are more Lutheran practical than socialist.

Edited April 17, 2011 by August1991