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An Alberta Case Study
             Diana Gibson, Parkland Institute
   Less reliance on taxes
   Regulatory capture
   undermining democracy
   Dutch disease
   Inequality and a system skewed in the
    interest of corporations and the corporate
    elite.
   From 1989 to 2008, Alberta’s spending as a portion
    of GDP shrank 40 percent—and is easily lowest
    among provinces.
   Alberta’s economy has grown 76 percent more than
    population and inflation in the past 20 years.
   Corporate profits more than doubled their
    share of Alberta’s economy from 1989 to
    2008, rising from 9.6 percent to 22.6 percent.
60000




                  50000




                  40000



$Million (2002)

                  30000
                          Corporate Profits

                          Corporate Tax Revenues



                  20000




                  10000




                      0
Table 1: Changes in selected fiscal indicators in Alberta, 1989-1993 vs. 2004-2008




                          1989-1993            2004-2008
                      Five Year Average    Five Year Average         Change
                      (per capita, 02 $)   (per capita, 02 $)   (per capita, 02 $)   Change (%)

Health Care                 2,061                2,563                 502            24.35%

K-12 Education              1,248                1,276                 28              2.28%

Post Secondary               819                 1,014                 195            23.87%

Social Services             1,546                1,032                -514            -33.26%

Personal Income            28,214               37,041                8,828           31.29%

Corporate profits           2,923                13,290              10,367           354.68%
ROYALTIES
85%




80%




75%


                                                                            Rest of Canada

                                                                            Alberta
70%




65%




60%

      2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
Share of Earnings top and bottom half of households
                               90%



                               80%



                               70%



                               60%



                               50%



                               40%



                               30%



                               20%



                               10%



                                0%

                                           Bottom 50%   Top 50%
$700,000



$600,000



$500,000



$400,000

                                                                       Threshold

$300,000                                                               Average



$200,000



$100,000



     $0

           NL   PEI   NS   NB   QC   ON   MB   SK   AB   BC   Canada
Median Alberta Income        Median CEO Income

Top 5 Median CEO Income

                                   $11,084,12
                                      3.00




                  $2,473,439.
                        00




    $68,100.00


             Median Alberta Incomes
Year                            %
2008                            40.6
2004                            44.7
2001                            52.8
1997                            52.8
1993                            60.2




 In the last election Alberta had the lowest turnout for a Canadian
 provincial election in the last 50 years.
2
Albertans Believe that Government Should be Doing More




  Believe gov’t should be doing more or at least the same to
             protect free, high quality healthcare.




                                                       Believe gov’t should be doing more or at least the same to
                                                                             reduce GHGs.
21
    By a 2:1 margin, Albertans believe in funding social
           programs over eliminating the deficit
Q   Which statement is closest to your view?
        The provincial government should increase finding for social programs such as health and education even
        if it means running a deficit
                                                        -or-
        The provincial government should eliminate the deficit, even if it means reducing funding for social
        programs such as health and education
22




Q   Do you agree or disagree with the following statements?




                                     Note: ‘Don’t know/Refused’ not shown

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Diana Gibson April 13 Corner Brook

  • 1. An Alberta Case Study Diana Gibson, Parkland Institute
  • 2. Less reliance on taxes  Regulatory capture  undermining democracy  Dutch disease  Inequality and a system skewed in the interest of corporations and the corporate elite.
  • 3. From 1989 to 2008, Alberta’s spending as a portion of GDP shrank 40 percent—and is easily lowest among provinces.  Alberta’s economy has grown 76 percent more than population and inflation in the past 20 years.  Corporate profits more than doubled their share of Alberta’s economy from 1989 to 2008, rising from 9.6 percent to 22.6 percent.
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  • 6. 60000 50000 40000 $Million (2002) 30000 Corporate Profits Corporate Tax Revenues 20000 10000 0
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  • 8. Table 1: Changes in selected fiscal indicators in Alberta, 1989-1993 vs. 2004-2008 1989-1993 2004-2008 Five Year Average Five Year Average Change (per capita, 02 $) (per capita, 02 $) (per capita, 02 $) Change (%) Health Care 2,061 2,563 502 24.35% K-12 Education 1,248 1,276 28 2.28% Post Secondary 819 1,014 195 23.87% Social Services 1,546 1,032 -514 -33.26% Personal Income 28,214 37,041 8,828 31.29% Corporate profits 2,923 13,290 10,367 354.68%
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  • 14. 85% 80% 75% Rest of Canada Alberta 70% 65% 60% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  • 15. Share of Earnings top and bottom half of households 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bottom 50% Top 50%
  • 16. $700,000 $600,000 $500,000 $400,000 Threshold $300,000 Average $200,000 $100,000 $0 NL PEI NS NB QC ON MB SK AB BC Canada
  • 17. Median Alberta Income Median CEO Income Top 5 Median CEO Income $11,084,12 3.00 $2,473,439. 00 $68,100.00 Median Alberta Incomes
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  • 19. Year % 2008 40.6 2004 44.7 2001 52.8 1997 52.8 1993 60.2 In the last election Alberta had the lowest turnout for a Canadian provincial election in the last 50 years.
  • 20. 2 Albertans Believe that Government Should be Doing More Believe gov’t should be doing more or at least the same to protect free, high quality healthcare. Believe gov’t should be doing more or at least the same to reduce GHGs.
  • 21. 21 By a 2:1 margin, Albertans believe in funding social programs over eliminating the deficit Q Which statement is closest to your view? The provincial government should increase finding for social programs such as health and education even if it means running a deficit -or- The provincial government should eliminate the deficit, even if it means reducing funding for social programs such as health and education
  • 22. 22 Q Do you agree or disagree with the following statements? Note: ‘Don’t know/Refused’ not shown

Editor's Notes

  1. What I will talk about today.
  2. growth losers, such as Nigeria, Zambia, Sierra Leone, Angola, Saudi Arabia and Venezuela, are all resource-rich, while the Asian tigers: Korea, Taiwan, Hong Kong and Singapore, are all resource-poor.However Australia, Canada and Norway are opposite experiences. Recent studies look at institutional strength to break the resource curse. Studies of growth impacts of resource wealth – institutions - especially low levels of corruption, law and democracy.
  3. From 2005 to 2008, for example, Alberta’s per capita spending on social services was 33 percent lower than the national average.
  4. The top and bottom bars are illustrations that Albertans are not the stereotypical “hard right-wingers” that some might believe.