"Curiously, Alberta has much in common with the Venezuela that Hugo Chavez bequeathed to the world. Both rely on heavy oil exports to the U.S. Both are one-party states (Alberta more so than Venezuela). Both are utterly dependent on the price of oil and both have economies that, in different ways, have been deformed as a result of this dependence.
"Venezuela faces a reckoning and so does Alberta. So, indeed, does Canada as a whole.
"We are already seeing a decline in the Canadian dollar as a result of the resource slowdown. In the long run, this should be good news for Canadian manufacturers who export their goods. In the short run, it means all of us are a little poorer.
"Where we don’t see any change is in the federal government’s approach to the economy. The Harper Conservatives remain dazzled by resources. They believe that if the markets want Canadians to hew wood and draw water, that’s what we should do.
"But markets are notoriously fickle. This is a fact the entire country will have to face. Alberta is just getting there first."
Full article: Alberta’s oil woes mean trouble ahead for Canada.
