The Economy: Why the UCP Receives a Failing Grade

The Economy: Why the UCP Government Receives a Failing Grade

In May 2023, Albertans once again chose the UCP to form government. There are several opinions on why the Alberta NDP lost the election they seemed destined to win, given the chaos created by Smith government: too much focus on Edmonton and Calgary, not enough focus on other small cities and rural ridings, too much negative campaigning, not enough promoting the NDP’s record when they were in government and how well they did to keep Albertans employed in spite of a world wide recession and crashing oil prices. . .  

Most Albertans know that the Alberta NDP wins unquestionably when it comes to managing public health, education, and other public services. In a province where healthcare is in chaos, education is crumbling, the income gap between the rich and the poor is ever widening, in the May 2023 election, people STILL put their faith in a government that seems intent on padding the pockets of the wealthiest while ignoring hard-working Albertans. And as more and more Albertans slip below the poverty line, it makes the tax burden even harder for those in the middle class.

So, we should not be surprised that healthcare is still a mess, classrooms are still underfunded, and citizens are still struggling to make ends meet!

When Rachel Notley formed government in 2015, she not only inherited a mess, but she also started her term during one of the worst economic world recessions with crashing oil prices that we have not seen since the early 80s. Yet, she managed to keep Albertans employed, classrooms funded, and healthcare functioning. By the end of her term, she was already paying down debt and building a strong and resilient economy.

And yet, in 2023, Albertans didn’t trust the Alberta NDP to manage the economy! They trusted the UCP! That was a big mistake. Truth be told, the Alberta NDP had a much better plan for the economy than the UCP. Alberta now has the highest inflation rate in all of Canada. Let’s explore some reasons how the UCP is failing the economy and the people of Alberta!

Let’s begin by examining the UCP's policies pertaining to the business environment in Alberta. Many of the UCP’s policies that favor big corporations over small and medium-sized enterprises are stifling innovation, entrepreneurship, and job creation. In addition, their approach to regulations is creating an unstable business environment. Reduced regulations, which result in a lack of oversight, may lead to irresponsible business practices, environmental harm, and lower quality standards. This approach is discouraging investment and hindering economic growth in Alberta. And this is hurting middle class Albertans!

The UCP's approach to the energy sector is also damaging the Alberta economy. Smith’s obsession with the oil and gas industry lacks vision and leaves little room for diversification. Over-reliance on one sector of the economy without a plan for the future, makes our province vulnerable to the fluctuations in commodity prices, environmental regulations, and global market trends. Moreover, the moratorium on renewables has had a disastrous effect on Alberta’s economy: stifling investment and hindering long term economic sustainability and competitiveness on a global scale. As a result of this short-sighted decision, we’ve lost out on trillions of dollars in investments, and significant potential income streams from revenues generated from taxes, royalties, and lease payments.

         Smith’s lack of vision for the future can also be seen in her treatment of public sector employees. To be exact, Smith offered public sector employees a 7.5 percent increase in wages over the next four years. This, however, does not even allow these workers to keep up with inflation which has increased by 15 percent in the last three years. Experts predict this move will further detract doctors, nurses, teachers, and other professionals from moving to Alberta or staying in Alberta. And this short-sighted plan creates huge instability to the future prosperity of our province. Such a decline in public services is bound to weaken Alberta’s overall competitiveness and attractiveness for investment.

         There is much more to be said, but I will save that for future articles. All I hope for now is that Albertans will chose better in 2027!