Our economy didn’t break recently. It’s been broken for awhile. And much of the reason is because the traditional business model for capital investment in Alberta O&G is broken. 2/n
Today’s stock market crash and the plummeting prices must be a wake up call for all of us, but particularly for the #abgov. 3/n
There may be a global conspiracy to landlock Canada’s oil, but it’s not driven by environmentalists, it’s driven by our competition in oil and gas production. 4/n
Russia and Saudi Arabia are much better positioned to profit off low cost oil because their production costs are much cheaper. Fracking is also a game changer and $60/barrel cannot be viewed going forward as a low or even moderate price of oil; it’s the ceiling. 5/n
For Alberta to hope and dream that if they only elect the right government or start a war room with a “fight back” strategy things will change is frankly idiotic. Why did we not learn from the collapse in natural gas prices? When will we learn from this? 6/n
We cannot rebuild the economy the same way it was built. We cannot expect that reducing corporate taxes will bring back capital investment and all the jobs that came with it. 7/n
Corporate tax cuts only apply to profits and if the old business model is incapable of generating profits then it doesn’t matter if you set the rate at zero, they still aren’t coming back! 8/n
So, we need a new approach. And no the answer to a broken private sector is not to turn around and break the public sector. We will need investments in education in order to build the new economy and we will need a social safety net to catch those who fall in the transition. 9/n
Let’s acknowledge that deficits and debt will be needed in this transition. Let’s agree, as adults, that our provincial debt load is actually really, really low and that debt taking is not only prudent, but also necessary in the next while. 10/n 
Then let’s move forward with reforming our taxation regime. It is so crazily out of whack with the rest of the country and with other jurisdictions that don’t rely on resource revenue to balance the books. 11/n
Still reading? Thanks. Here comes the important stuff. 12/n
We could raise an additional $14.4 billion in revenue and still be the lowest taxed province in Canada if we adopted Ontario’s tax rates. Yes, that would include a sales tax.
This graph shows how much more revenue we’d have if we used each province’s tax rates. 13/n
This graph shows how much more revenue we’d have if we used each province’s tax rates. 13/n
If we adopted Ontario’s tax rates we’d be tied for lowest taxes in country, we’d eliminate the deficit AND we’d completely replace resource revenue use as general revenue.
(I take that these numbers are based on a rosier economic forecast, but the argument is still valid) 14/n
(I take that these numbers are based on a rosier economic forecast, but the argument is still valid) 14/n
All of this is part of what we would call a “just transition” or even a “green new deal”. It isn’t about a war against O&G. It’s about a realization that the global economy is changing and we need to move ahead before we get left behind. 15/n
The “fight back strategy” won’t work. The “war room” concept is a total waste of money. The fear, smear and divisiveness of stoking a battle between O&G workers and public sector workers is cynical zero-sum politics that will destroy us. 16/n
