albertas finances

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As Albertans approach another provincial budget, the usual fables about Alberta's finances often crop up. To inoculate ourselves in advance, let's ponder two myths.

Myth Number One: Alberta's wealth is a result of luck.

This tall tale assumes that the existence of natural resources automatically results in wealth creation, jobs, and a higher standard of living. That's hardly the case. Plenty of jurisdictions have little in the way of natural resources but prosper, while others have plentiful natural resources yet flounder.


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All politics is local, said Tip O’Neill, the 1980s-era leader in the U.S. House of Representatives. 

That may be true, but government budgets—especially in Alberta—are increasingly anything but local. International events and economic developments regularly affect economies and government finances on the other side of the planet.

One century ago, few would have wondered how a sovereign debt default by a Greek government might affect British, American and Canadian economies.