3 ms·
Plan for the future by not leaning into the upswing of a boom and bust cycle. Governments encouraged more development, accentuating the cycle. Governments coul
by graeme 11y ago
Plan for the future by not leaning into the upswing of a boom and bust cycle. Governments encouraged more development, accentuating the cycle.
Governments could also have established rainy day funds. Alberta has one, but they haven't added anything to it since 1987. Canada as a whole has none (this is somewhat reasonable, as the federal government doesn't have jurisdiction over natural resources)
https://en.wikipedia.org/wiki/Alberta_Heritage_Savings_Trust_Fund https://en.wikipedia.org/wiki/Alberta_Heritage_Savings_Trust...
- forgetsusername 11y ago>Plan for the future by not leaning into the upswing of a boom and bust cycle. I disagree. The upswing of the commodity cycle is precisely when you sell. Who knows, maybe oil is obsolete in 10 years. Then we're sitting on a pile of worthless gunk. Get your money when the gettin' is good.
- graeme 11y agoI would agree with you, if the country had been saving any of it. As we currently ran things, the oil sales crowded out other sectors via currency appreciation for no long run gain. That's environmental concerns aside. There are pretty good global and domestic reasons for leaving the most marginal bits of the gunk in the ground. And leaning into the cycle develops precisely those marginal sources that were most polluting or least profitable.