To watch the conversation go to Youtube
In the first of a series of conversations with well respected and informed Albertans, Todd Hirsch,
best known as for his role as the Chief Economist with ATB Financial, discussed three challenges faced by Alberta.
These challenges are fiscal, economic, and political. This series, begun during the hotly contested 2023 provincial general election, is designed to engage readers on subjects which, regrettably, are not being discussed on the election campaign trail. These issues will form the real challenges that a new government will need to confront over the next four years.
In the conversation which took place on May 8th, Hirsch reveals some of the background to his report for the NDP “A Better Future.”
He had two conditions stipulated in doing the report: 1) he not be compensated and 2) his report be made public. In the report, he describes the imbalance inherent in Alberta’s fiscal structure. A key input for his report were 37 interviews with labour leaders, current and former politicians, academics and business leaders. A key recommendation -to pay off debt as the default option when periodic windfalls to the treasury produce surpluses-arose from Hirsch’s interviews with David Dodge former Bank of Canada
Governor. Dodge also was responsible for a report to the NDP government in 2015 on public infrastructure investment The default option is “not the best option but involves the least risk” when compared with public spending or savings. The report emphasizes the importance of a having a financial plan to guide decision-making. A nuanced discussion on the sales tax followed. Hirsch observed that policy solutions could be very different when politicians were the decision-makers and not economists.
In our discussion about Alberta’s economic future, Mr. Hirsch is optimistic overall. He spoke about the dynamism of Alberta’s business community as a central attribute and advantage. While recognizing the vulnerability of Alberta’s economy to boom and bust, he regards Alberta’s economy as being in the midst of “organic diversification.” He notes more balance is being seen with oil company investment not consuming the majority of scarce capital as in the past.
On politics, Hirsch is less sanguine about Alberta’s future. Tribalism and divisiveness in the electorate will produce very difficult challenges which will require governments to somehow overcome this division.
Reproduction of any or all of the conversation is prohibited except with written permission of Abpolecon.ca
Series production by Brendan Ruddy- As the Crow Flies.
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