I hope everyone who drives is enjoying the falling oil prices, but for the province of Alberta, it’s not necessary a great thing.
Alberta is the suggested province job seekers should move to if they live in Eastern Canada. Its fiscal house is currently in order with a surplus, the economy is very healthy and businesses and the jobs they create are moving there.
Not so fast. Alberta’s economic prosperity was based on the high price of oil. Now the price of oil is falling rapidly and Alberta Premier Jim Prentice is considering creating a sales tax (it was the only province that did not have a sales tax). While oil prices eventually will go up again — that’s how any commodity that is sold will behave — the choice to go west is not as sound an argument as it used to be.
On the flip side of the coin, if Alberta’s shine as the go-to province for work is fading, then Ontario, currently a have-not province with a sluggish economy, could become the prosperity engine it used to be back in the 1970’s and 80’s. Here’s a CBC story that supports my opinion.
Is the possibility that Ontario will return to better times a good thing? Well, perhaps for me since I don’t want to chase jobs all over the world, but it’s not a solution for the country as a whole. The Canadian economy is just like a well-maintained car. You’d never consider driving a car with one flat tire, a cracked driver’s mirror or a leaky gas tank, would you? Of course not. You wouldn’t work around a defect, compensate for a loss in functionality, or assume the other working parts will keep the car going. You expect everything to work properly. You fix anything that is not working properly.
Same goes for Canada’s economy. Every province, every territory, every region, every city and town, every person must be working at optimal performance. Just like a fine-tuned car.
Thanks for reading!