Any glimmer of hope the economy is turning around is better than no hope at all, even if it is tempered by the fact we’re still looking at $10.3 billion deficit this budget year in Alberta.
Last week’s proclamation, by Alberta Finance Minister Joe Ceci, that Alberta is rebounding is good news. Ceci even went so far as to say the recession is behind us. That may well be a bit of a stretch, especially as the province is weighted down by a massive debt load of $39.1 billion, according to the Canadian Taxpayers Federation debt clock. That equates to just over $9,000 per Albertan.
To put things in perspective, Saskatchewan’s debt sits at $8.7 billion. But, compared to British Columbia $66 billion accumulated debt load, we don’t look so bad. Interesting how other’s misfortune can make us feel better about our own challenges.
What’s also interesting is good economic news tends to lift the spirits of people in general. Even the average working Joe is happy to hear things are turning around, especially if that translates into increased private sector job opportunities. When people are more confident and optimistic about the future, they tend to spend money. No one can argue that’s a bad thing.
However, Ceci also delivered a bit of a bitter pill to Albertans last week, especially those in the public sector. As oil prices regain some buoyancy, and the New Democrats look inward to tighten the belt on government spending, hiring freezes are on the table and that could certainly impact the services Albertans receive. Government management and non-union employees are already in a salary freeze and that has now been extended to September 2019.
It would seem, recovery in the Alberta economy won’t come without a price.
