Doug's Blog
Reflections on a week in Realville
For the last two years I have lamented the amount of money that was being spent by everybody and expressed my worry over the inevitable day that the boom goes bust. I pointed out repeatedly that all levels of government and individuals themselves were spending incredible amounts of money on things that were always called necessities, when in fact, they were what we wanted rather than what we needed. I pointed out that governments are to blame for their spending, but Alberta’s themselves had to take some responsibility for expecting and demanding so much from them. You know what I mean if you ever heard someone start, "In a province this rich . . . "
We find ourselves now in the midst of a global recession and no one is certain what will happen in the next 2 years. Some claim it is already catastrophic, as bad as those dirty ‘30’s, and worse the impact of the National Energy Program, but in reality it does not compare. It may get worse, but it is hardly that bad now. We currently have inflation and interest rates under 2%, and unemployment rates in this province are anticipated to reach as high as 5.8% this year. Compare that to unemployment and interest rates at 20%, and inflation nearing double digits in those by-gone downturns and we are not in comparably devastating economic times. Compound those numbers with the fact that Canada is in the best economic position to weather this slowdown, and Alberta is in the best position in Canada to weather this slowdown, and we find ourselves in the most enviable position in the world right now.
We have resources put away to balance out the reduction in government revenue that can cover a continued investment in important programs and infrastructure for the next two years. If the downturn worsens or lasts longer than that we may have to make some very, very critical choices, but again, we will be two years ahead of other jurisdictions that are forced to make some very painful and critical choices at this moment. Don’t get me wrong. We should not blissfully drive ahead with spending, but we have the ability to make choices that are not drastic or reactionary. We can plan out our own future.
That means that we don’t have to make huge cuts, or slash and burn programs or projects, but we also shouldn’t spend unwisely, whether it is now because of economic uncertainty, or then when times are good. Just as I said 2 years ago, we have got to ask ourselves if we are spending money on what we really need, or is it on what we really want? Are we investing to build for tomorrow, or spending to enjoy today? Are we spending and saving so that we are prepared for the next downturn . . . which will come, or are we spending and saving as though there will never be another downturn?
Now is not the time to panic. Now is the time to take a breath, collect our thoughts and be thankful for the reminder that highs don’t last forever, and neither do the lows. Now is the time to remember what JFK’s immortal words meant, "Ask not what your country can do for you, ask what you can do for your country." Now is the time to stop asking what the government can do for me and give to me and provide for me, and start asking, what can I give, what can I build, what can I sacrifice to ensure my province and my nation are strong and prosperous for the next generation and generations to come. No success comes without some giving, some building and some sacrifice. That is the spirit that built this province. We have all the opportunity in the world right here. Are you ready?
