It's no secret that suppressed oil prices are taking their toll on the Alberta Economy. Not only are there tens of thousands out of work, the reduced employment has also seriously decreased Albertans' spending power.
It's no secret that suppressed oil prices are taking their toll on the Alberta Economy.
Not only are there tens of thousands out of work, the reduced employment has also seriously decreased Albertans' spending power. That means less money is being spent across all sectors from entertainment and restaurants to automotive and real estate.
For people like Lee Long, a Cochrane oil and gas consultant, the impact of low energy prices has meant loss of work and income as he struggles to stay afloat.
In a story in this week's Eagle, Long had some excellent insight into what has led the energy industry down this dismal path - aside from the obvious slump in process per barrel oil.
He pointed to the need for more consistent regulations and for government's to support Alberta business with well thought out policies that factor in the long-term effects. He was also critical of governments that repeatedly give into special interest groups and stymie projects.
While his criticism was directed at provincial governments for the past 15 years and did not put full blame on the NDP - as so many others are quick to do - he did made an excellent point about NDP policies that are doing further harm.
Increased corporate taxes, increases to minimum wage and a coming carbon tax came as no surprise, the NDP campaigned on those issues and a successful election provided the mandate to follow through.
Even those who support those changes - and indeed there are those who do - must admit the timing and the fact they were all done at once was a mistake.
Businesses already suffering from a reduced customer base due to the high unemployment are being hit hard by increased costs. In some cases those costs are being passed onto the consumer and in others they are biting into already slim profit margins.
They are also changes that leave no industry or service unscathed. When the province was booming and the oil flowed at a $100 a barrel perhaps the impacts would have been less noticeable.
Now, with the economy the way it is, the last thing people need is to pay more at the pumps, more to heat and light their homes, and more to feed their families, the pressures of all these changes all at once might be too much for some to bear.
Good government must be able to separate idealogy from sound practice. While there might be support for increased minimum wage and increased corporate taxes and even for a carbon tax, blindly pushing forward when people and businesses are already struggling doesn't make sense.
