It’s almost as if we have data on this or something.
While Conservatives busy themselves self-immolating over the government’s choice to deficit spend, the economy moved the fuck on and responded exactly as predicted:
Alberta’s economy is more than just back on its feet, it’s about to run faster than any other region in Canada.
Gross domestic product in the western province will rise by 2.9 percent this year, according to a Bloomberg survey of economists, up from an April estimate of 2.5 percent. That matches forecasts for neighbouring British Columbia, and in 2018 Alberta comes out on top with a 2.4 percent expansion that would be tops among Canada’s 10 provinces.
It’s a huge comeback from Alberta’s last place finish in each of the last two years when oil prices plummeted below $50 a barrel, triggering layoffs and an investment freeze that shrank GDP by about 4 percent. The rebound is another sign Canada may retain its top spot among Group of Seven nations as economic growth diversifies away from consumer spending.
Step two, of course, is the part that really gets the Conservatives excited–Keynesian spending requires taxation during the booms. It remains to be seen whether this will be the case. Conservatives tend to shriek “Greece!” the moment someone suggests 8 hours is not an adequate response time in the emergency room, but they do have a point. You have to balance the budget eventually, and a boom is the best time to do just that. Just running a deficit is the easy part, the real test will be whether Alberta’s NDP or the Canadian Liberals actually shear their capitalist sheep. The saying is “tax and spend,” not just “spend,” after all.