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0 pointsayngg4y ago0 comments

A big difference is that Norway is a sovereign state and didn't have to deal with federal and inter-provincial politics like Alberta did. I have my doubts about whether or not a federal government that has done something like the National Energy Program would allow a province within their country to hold a sovereign wealth fund worth hundreds of billions, or even over a trillion dollars.

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throw0101a4y ago

> A big difference is that Norway is a sovereign state and didn't have to deal with federal and inter-provincial politics like Alberta did.

As I understand it the Alberta Fund is completely controlled by the province. There is some national policies, especially with exports, that falls under the Feds, but how much (or little) flows into the Fund is completely up to the province.

It is on Alberta itself that it decided to have low/er provincial income taxes and no provincial sales tax. Those things were 'funded' by the resource revenues, which effectively came a sort-of cheque to the habitants of the province. And when oil prices went down, government funded went sideways.

IMHO Alberta shouldn't blame Ottawa for not setting aside something for a rainy day.

aynggOP4y ago

I am not saying that there is blame or not, it isn't so much blame as recognizing that there are different circumstances between Alberta and Norway that influenced the direction they went.

The big example is the National Energy Program which (aside from its economic impact on the province) basically tainted politics in Alberta and probably contributed to their hesitancy to contribute to a fund which could potentially be raided by the Federal government in the future.

thedmstdmstdmst4y ago

> would allow a province within their country to hold a sovereign wealth fund worth hundreds of billions, or even over a trillion dollars.

This is Alberta we are talking about? If in your hypothetical the Federal Government didn't mess it up the Province would.

soperj4y ago

They're the only province to run a balanced budget for last 50 years.

throw0101a4y ago

Alberta has had plenty of deficits in the last 10 years, never mind the last fifty:

* https://www.fraserinstitute.org/fr/node/9227

And they're not the only ones to be positive, as Ontario has had several surpluses or small deficits ($200M):

* https://en.wikipedia.org/wiki/Ontario_government_debt

This of course assumes that a balanced budget (or surplus) is something that even should be aimed for. Certainly one shouldn't go crazy with spending (especially when stimulus isn't needed), but the balanced idea seems to be a strange fiscal fetish that is over-focused upon.

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throw0101a4y ago

> A big difference is that Norway is a sovereign state and didn't have to deal with federal and inter-provincial politics like Alberta did.

IMHO Alberta shouldn't blame Ottawa for not setting aside something for a rainy day.

aynggOP4y ago

I am not saying that there is blame or not, it isn't so much blame as recognizing that there are different circumstances between Alberta and Norway that influenced the direction they went.

thedmstdmstdmst4y ago

> would allow a province within their country to hold a sovereign wealth fund worth hundreds of billions, or even over a trillion dollars.

This is Alberta we are talking about? If in your hypothetical the Federal Government didn't mess it up the Province would.

soperj4y ago

They're the only province to run a balanced budget for last 50 years.

throw0101a4y ago

Alberta has had plenty of deficits in the last 10 years, never mind the last fifty:

* https://www.fraserinstitute.org/fr/node/9227

And they're not the only ones to be positive, as Ontario has had several surpluses or small deficits ($200M):

* https://en.wikipedia.org/wiki/Ontario_government_debt

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