Alberta’s budget, the Coronavirus and toilet paper stockpiling

We do live in crazy times indeed. Jason Kenney brought down a budget based on the fantasy of $50-plus prediction for oil. He has promised to balance the books by giving corporate Alberta a hefty tax cut in the illusory belief that this will create 55,000 new jobs in Alberta. He predicts welcome economic growth in Alberta’s economy with a positive impact on fiscal health. But the evidence from numerous studies, economists — even right-wing economists — reject this notion as more fantasy than reality.

Studies by Finance Canada suggest that corporate tax cuts in Canada over the past 20 years have failed to stimulate employment or meaningful growth. The evidence points instead to a decline in investment and a large build-up of corporate surpluses, fuelling speculative investments, share buy-backs, mergers and acquisitions, dividend increases and increases in corporate compensation.

But this budget is already in tatters. Oil is closer to $30-plus and the big money investors have left town. What is worse, Kenney has had to cope with rail blockades and COVID-19. So Kenney is suddenly very humble and has gone cap-in-hand to Trudeau. But a solution is staring him in the face. We are currently experiencing empty supermarket shelves where toilet paper is treated like gold, flour is not to be found anywhere, butter is being stockpiled and it is easier to find a rare single malt whisky than hand sanitizer products.

Jason, bring down another budget. Negate the big corporation tax cuts and give them to toilet paper manufacturers, flour mills, dairies and hand sanitizer producers. Make sure they are not foreign owned. That is where jobs will be created. Your War room can dream up the spin! Think of it. Alberta consumers will think that “you are the greatest” by ensuring that a roll is always handy. Alberta will lead Canada in toilet “hygiene”. Toilet paper could even be the catalyst for a new Alberta Bitcoin (or Bitpaper) banking system. Another toilet roll Alberta advantage brought to you by Kenney. Albertan economic life will be fuelled by the roll. So go for it, Jason. Exploit the frenzy and Albertans will soon forget about your earlier “voodoo” budget. Mike Hruska

Edmonton