The Real World Effects of a Liberal and NDP Government Calgary landlords are turning empty offices into apartments as city’s oil jobs dry up! – June 11, 2019,
Turning a market economy into socialist utopia takes careful planning and anticipation. Austerity is something that voters or government rarely want to experience and it’s for the reason why people warn against Socialism and all forms of Collectivism. To avoid Austerity measures Italy instead of considering changing the way it governs itself instead is toying with the idea of a new domestic currency. You see the Euro or the European Union has rules that govern its currency that doesn’t allow Italy to devalue its currency to pay its bills and if you know anything about the history of the Lira, it was basically printed into oblivion before Italians embraced the Euro. Now, most people believe that money backed by something, will prevent governments from overspending, but I’ve always disagreed with this. What stops the government from overspending are its citizens.
In a Republic or Monarch that allows democracy, it’s extremely important that the civilized citizens understand that Government workers don’t work for free, furthermore, voters must also understand that markets, open or free markets fluctuate and if the democratically elected government opts to intervene into the markets for social justice related causes, they still won’t be able to prevent the inevitable market downturn which with a big government will lead to a now bigger government consuming more taxpayer dollars.
Furthermore, it should never be assumed that government intervention into a company won’t lead to private businesses either changing their business model or simply closing up shop. Humans don’t react well to force, slavery has always been an unproductive means of production, so via legislation, regulation or government decree an entire industry can be destroyed in a few years, simply for a law that was made to apparently create social justice.
Well, the reality is Rachel Notley and her NDP Party along with Justin Trudeau and his extremely socialist Liberal Party, knowingly or unknowingly destroyed Alberta’s economy. Now, let me make something clear, the Alberta economy was never perfect, I’ve often complained about it, however, their markets were relatively free and because they basically were paying the bills of Quebec and most of eastern Canada Pipelines was something that they should have been able to build and if they couldn’t build pipelines something realistic should have been done to allow their economy to be productive. Unfortunately, for Alberta under Trudeau, Notley, and John Horgan everything was stalled and one of the hardest hit cities in all of this was Calgary.
Calgary landlords are turning empty offices into apartments as city’s oil jobs dry up – CBC
Now, although the assumption is that a house or an apartment is an asset, the reality is that a home is only an asset if it’s surrounded by economic activity, there are plenty of houses all over Canada that are worthless because they’re located in areas that are far from economic activity. Now, in China there are a lot of Ghost cities because the central planners in a China, assumed that if they built it people would come, but even with Billions of people in China, most of the Chinese gravitate to the cities with the most economic activity, I say this because most people move to Alberta because of its economic activity and because the Social justice types assume that economies simply fix themselves, they assumed that their intervention or their hope to restructure the Albertan economy wouldn’t create some of the economic disasters Alberta is now facing.
Although this action is a step in a direction, if Calgary has no economic activity, there’s the potential of a mass exodus out of Alberta, if the lifeblood of their economy isn’t allowed blossom. Most of the people I know that moved to Alberta, did so primarily for the economic opportunity. An excess of rental housing isn’t a good thing if there’s little to no economic activity, because property taxes as an example are too high for small businesses. When people have no jobs, the demand for welfare and other social services grow and this is why government intervention into the markets is a delicate thing, because as we’ve seen in American states like Michigan, California, and Chicago if a big government loses its economic base even it’s public services are threatened, and with less economic activity, what often happens next is a mass exodus, which doesn’t bode well for real estate commercial or residential rentals.
Interesting times ahead.