Alberta
“…(Alberta’s) been booming so long that people think it’s our time to suffer…”
Producer Notes:
What an emotional piece of video here shared by Heidi, and the links between layoffs and suicide in Alberta. The data is very clear that there’s a direct correlation and an increase in suicide rates and what’s going on in our world gasps History and dad’s especially fathers can be under tremendous pressure if they’re the solo income earner for their family. Not only are you at high risk of financial collapse if you lose your job, but the emotional toll that that can take and the impact on your mental health, confidence. My heart goes out to families that are suffering…”
The following is a transcript of the above video interview with Heidi McKillop, Director, Producer “A Stranded Nation”.
“… The interesting thing about when you see this issue in the news about oil and gas and that we don’t need it, for instance, or that it’s dirty oil and then it’s getting displaced to another jurisdiction around the world is quite literally the impact it has had directly in this province.
I mean, you can see in downtown Calgary especially, but definitely in the rural communities as well, like Grande Prairie, you name it. There has been an unbelievable shift in terms of what communities are up against with layoffs, and there’s a part of a documentary — I don’t know if you know this, but there was an article, and it was the suicide rates going up 30 percent in Alberta that year.
I mean, it’s a debate of if that was directly related related to the recession or not, that was part of it. But there was certainly a connection between economic downturn and mental health issues on the rise.
And that article was actually about a little girl that had killed herself because her dad had lost his job. And it was a really, really sad article, and I just said to myself, I was like, if people can’t have compassion about the fact that people are drastically getting affected in their family lives, then that’s probably not the messaging that we’re trying to reach to those people, because they are obviously showing a lack of compassion in that area. And that, to me, is very sad to see because it happens quite often.
Especially when I go home, you know, Alberta’s been booming for so many years and so many decades, people just think we’ve been booming for so long and long enough that it’s our time to suffer. But that’s just not the way that we should start thinking. It’s very dangerous. Yeah, it makes me so angry actually. Yeah, it’s pretty rough.
Heidi McKillop, Director, Producer “A Stranded Nation”
https://twitter.com/heidimckillop?lang=en
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Alberta
Alberta government should eliminate corporate welfare to generate benefits for Albertans
From the Fraser Institute
By Spencer Gudewill and Tegan Hill
Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.
And this is just one example of corporate welfare paid for by Albertans.
According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.
Why should Albertans care?
First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.
For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.
Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.
Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.
In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.
By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.
Authors:
Alberta
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