An Alberta Case Study

Diana Gibson, Parkland Institute

Less reliance on taxes

Regulatory capture

undermining democracy

Dutch disease

Inequality and a system skewed in the interest of corporations and the corporate elite.

From 1989 to 2008, Alberta’s spending as a portion

of GDP shrank 40 percent—and is easily lowest

among provinces.

Alberta’s economy has grown 76 percent more than

population and inflation in the past 20 years.

Corporate profits more than doubled their share of Alberta’s economy from 1989 to 2008, rising from 9.6 percent to 22.6 percent.

0

10000

20000

30000

40000

50000

60000

$M

illion (2

00

2)

Corporate Profits

Corporate Tax Revenues

Table 1: Changes in selected fiscal indicators in Alberta, 1989-1993 vs. 2004-2008

1989-1993

Five Year Average

(per capita, 02 $)

2004-2008

Five Year Average

(per capita, 02 $)

Change

(per capita, 02 $) Change (%)

Health Care 2,061 2,563 502 24.35%

K-12 Education 1,248 1,276 28 2.28%

Post Secondary 819 1,014 195 23.87%

Social Services 1,546 1,032 -514 -33.26%

Personal Income 28,214 37,041 8,828 31.29%

Corporate profits 2,923 13,290 10,367 354.68%

ROYALTIES

60%

65%

70%

75%

80%

85%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Rest of Canada

Alberta

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Bottom 50% Top 50%

Share of Earnings top and bottom half of households

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

NL PEI NS NB QC ON MB SK AB BC Canada

Threshold

Average

$68,100.00

$2,473,439.

00

$11,084,12

3.00

Median Alberta Incomes

Median Alberta Income Median CEO Income

Top 5 Median CEO Income

Year %

2008 40.6

2004 44.7

2001 52.8

1997 52.8

1993 60.2

In the last election Alberta had the lowest turnout for a Canadian

provincial election in the last 50 years.

Albertans Believe that Government Should be Doing More2

Believe gov’t should be doing more or at least the same to protect free, high quality healthcare.

Believe gov’t should be doing more or at least the same to reduce GHGs.

By a 2:1 margin, Albertans believe in funding social programs over eliminating the deficit

Which statement is closest to your view?

The provincial government should increase finding for social programs such as health and education even if it means running a deficit

-or-The provincial government should eliminate the deficit, even if it means reducing funding for social programs such as health and education

Q

21

Do you agree or disagree with the following statements?Q

Note: ‘Don’t know/Refused’ not shown

22