This article appeared in the Edmonton Journal, and it offers suggestions on how to deal with Alberta’s revenue deficit. The author of this article is a business columnist who boasts of three decade’s experience. The article is authored in light of the recent six billion dollars revenue-deficit in Alberta province. This deficit is a result of decreasing energy revenues. The author tries to offer sound suggestions that might help cushion this blow. The article notes that this deficit does not necessarily spell doom for Alberta or put the province in the same position as countries like Italy and Spain. According to the author, Alberta can respond to this shock by adjusting its taxation levels. The article compares the taxation levels of Alberta with those of other provinces and points out the obvious advantages. The author maintains that tax hikes should be a measure of last resort. According to the article, it is possible for Alberta to cover this deficit without compromising its existing tax policies. The author concludes by noting that Alberta needs to equip itself with more tools to combat these tax problems.
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The author of this article offers his version of the solution to a problem that has had many stakeholders worried. His solution is very solid from a financial standpoint. This is because the author offers numerical backing to his rhetoric. For instance, the author notes that Alberta is not in debt yet. Therefore, this is the most opportune time to handle the deficit crisis. This is a very valid argument because if the province starts slipping into debt, the effects of the deficit might begin being felt at the grassroots level.
As a regular financial columnist, Lamphier mostly represents capitalistic ideals. The author has been around for over three decades, and he obviously has a wealth of experience in economic matters. One can correctly assume that he has witnessed many economic downturns and turnarounds. This fact makes his opinion on the matter hard to ignore. When he calls the stakeholders’ attention to the deficit, it is likely that his instincts are on to something. However, there is a certain flair and arrogance that is often associated with such “gurus.” This means that the author might just be making a mountain out of a molehill. In fact, this deficit might correct itself within the next two years when the prices of natural resources stabilize. As the author notes, Alberta is not in debt yet (Lamphier, 2013).
The article does a great job of diffusing the propaganda surrounding this issue. For instance, the author faults the comparisons between Alberta and other failed economies like Greece. This implies that there is already budding propaganda surrounding the issue. The article also puts the whole issue into perspective. First, he notes that all non-renewable energies are bound to be exhausted at one point or another. In addition, this is not the first time the prices of energy resources have dropped. Therefore, the magnification of this issue and the consequent panic is not necessary. Another way in which he diffuses this propaganda is by showing that there are many possible solutions to this issue.
This article does a good job of putting the issue of revenue deficit into perspective. The author employs his wealth of experience in watering down an issue that seems bloated by propaganda. I agree with the author that Alberta is still a rich province, and there is no need to panic. A slow down should not be mistaken for a collapse of the economy.
Lamphier, G. (2013). Alberta should tax its way out of hole. Edmonton Journal, p, D1.