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Posted Jan 20, 2007, 7:13 AM
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Registered User
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Join Date: Feb 2004
Posts: 1,977
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Quote:
Originally Posted by freeweed
Incorrect, and I wish people from outside of this province would do some research before spouting off on another "you're nothing without oil" rant.
Remember those record budget surpluses last year? Remember those insane Ralph Bucks? Economists ran the numbers. If Klein hadn't worked on eliminating the provincial deficit, and paying down the provincial debt in the 90s, there would have been NO surplus. No Ralph Bucks, no extra infrastructure money, nothing. All that with $75 oil. Every last dollar sucked up by a budget deficit and debt financing.
Oil (although as already pointed out it's moreso natural gas) definitely fuels this economy, just as <<pick whatever is appropriate>> fuels <<insert province here>>'s economy. Duh, that's called revenue. Money doesn't grow on trees, and every province has SOMETHING that brings it in.
The difference is, in Alberta it's not wasted. At least, for now.
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I have done the research before (you know the internet does exist outside of Alberta), and you didn't address the fact that many pundits/economists state that Alberta's spending has increased incredibly, and Alberta is not the only province facing increased infrastructure costs, etc. Yes, every province has something that brings revenue in, but no province receives anywhere near the income that Alberta does from it's natural resources. Is the incredible wealth in the middle east due to conservative fiscal management, or oil!? (Oil, especially in Alberta's case being shorthand for oil, natural gas. Afterall, people say Oil Rich Alberta, not Oil and Gas Rich Alberta!)
What about Norway?
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Norway looks set to log another huge state budget surplus this year amounting to NOK 270 billion (about USD 38 billion). The windfall, fuelled by high oil prices, marks another record and further pumps up the country's oil fund, which acts like a national savings account.
Around a third of every krone rolling into the state treasury is now being stashed into the so-called "state oil fund." Since its creation in the 1990s, the fund aims to set aside a solid portion of the country's oil revenues for future generations.
The fund started with an initial deposit of NOK 2 billion in 1995. Today its assets have reached dizzying levels, now around NOK 1,300 billion, and that in turn is invested and generating more income as well.
This year's budget surplus stems from government expectations that Norway would get around NOK 300 per barrel for its oil. Steadily rising prices mean the country is instead getting much more than that, as much as NOK 400 per barrel at current levels.
That means a windfall for Norway, and the country's budget surplus is now believed to lag only that of Kuwait's.
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Now, don't tell me Manitoba' economy can bring in as much government revenue as oil!!
And all is not lost in Manitoba:
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PROVINCE LEADS NATIONAL ECONOMY ON SEVERAL FRONTS, ACCORDING TO YEAR-END STATS
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GDP, Manufacturing, Construction Work Above National Average, Job Growth Continues: Selinger
Manitoba’s economy continued strong growth in 2006, leading the national economy on many fronts, Finance Minister Greg Selinger announced today.
“Our economy is strong and despite the high Canadian dollar, impressive gains have been made in the manufacturing sector,” said Selinger. “Construction work, total exports and capital investment are also leading the country.”
According to year-end statistics Manitoba is leading the country in the following economic performance indicators:
· Manufacturing capital investment is up 60.8 per cent, compared to 3.4 per cent nationally. In the last 12 months, the number of jobs increased by 3,100 in this sector or 4.7 per cent.
· Construction work increased 24.1 per cent, compared to seven per cent nationally.
· Total exports increased 15.1 per cent, compared to 1.6 per cent nationally.
· Capital investment is up 14.6 per cent, compared to 6.1 per cent nationally.
Economic forecasts have set Manitoba’s gross domestic product (GDP) growth in 2006 at
3.1 per cent, above the Canadian rate of 2.8 per cent.
Selinger also noted that an average of 6,700 more jobs were created in 2006 compared to 2005. Of the jobs created, more than 80 per cent have been private sector jobs. Over the last seven years, Manitoba’s full-time employment has grown by an annual average of 5,140 jobs. This is a 135 per cent improvement over the period of 1990 to 1999 when it was only 2,190 jobs. In December, Manitoba’s unemployment rate also went down to 4.1 per cent, third best in the country.
“We’ve had strong economic growth this year and we expect the economy to continue to be strong in 2007,” said Selinger, who noted the GDP is expected to be above the national average in 2007.
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No, I'm not saying Alberta is nothing without oil, I'm just saying it would be another prairie province. Also, let's stop beating up on Manitoba, yes, like Alberta it could definitely be doing some things better, but I like to think that it's headed in the right direction.
Go Jets Go!
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