I have no problem with sharing oil wealth with the rest of the country, as long as it is done in an economically sensible manner. The current level of transfer payments takes thousands from every Albertan for re-distribution to other provinces. It is based on income taxes and other Federal revenue that is proportional to the strength of the economy. The absolute amount of transfer is similar in scale to that of the NEP, but it is honest and doesn't destroy industries (well, not like the NEP did, at least). It's a choice of milking the cow or bleeding it to death. Perhaps a better analogy is that good parasites don't kill their hosts. ;)
One thing about oil i could never understand, is what is the hurry to pump it all out
Simple. Net present value increases with early exploitation. I'd rather sell a barrel of oil for $50 now, if I can re-invest the $50 and make 2 barrels of oil next year, than sell the barrel for $100 5 years from now.
Don't worry about Alberta/BC/NWT running out of oil any time soon.
sheik Yamani guy had a bad analogy, oil is not stones, the oil age will die from lack of oil
Actually, I think he was right. If oil demand sends the price any higher, there will be a lot of substitution with other energy sources - renewable, nuclear, etc. When oil gets expensive, it will be relegated to making plastics and chemicals. Oil isn't expensive yet; it's still cheaper than in the early 80's in constant dollars.
there was a lot more to it than the NEP, but that's where the ire gets focussed
You're right. The NEP draws ire because it was a betrayal of kin, whereas the oil shock and the U.S. recession were factors beyond our control. Central Canada tried to stave off the recession by bleeding Alberta, so Alberta got hit doubly hard while ROC got a soft landing. Why shouldn't we have been pissed?
(Actually, I'm over it now and only get upset when somebody mentions Trudeau with insufficient disdain.)
;)
-g |
