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Friday, July 03, 2009
Stelmach asks new Premier’s Council to “think big” about Alberta's future
Alberta Premier Ed Stelmach announced Thursday the 12 members of the Premier’s Council for Economic Strategy. The council will be chaired by business executive and former Liberal cabinet minister David Emerson and will consider long-term goals for Alberta and provide advice on actions the Alberta government can take to best position the province for the future.
“We’ve put together an impressive range of experts from around the globe to advise on how we can best position Alberta for the future - and reach our full potential as a province,” said Premier Stelmach. “I want them to think big and provide an external perspective on our efforts to boost innovation, diversify the economy, enhance our quality of life, and sustain prosperity over the long-term.”
So far, the “think big” strategy of the Alberta government under Stelmach has been confined to big government, big spending and big deficits.
Council members are Elyse Allan, Professor Sir John Bell, Robert (Bob) Brawn, David Dodge, Juan Enriquez, James K. Gray, Clive Mather, Honourable Anne McLellan, Courtney Pratt, Dr. Lorne Taylor and Professor Jennifer Welsh.
It’s a collection of accomplished people, for sure, but will this “ideas incubator,” a term the province is using, really improve the quality of life for Albertans? I don’t think so.
In a recent post titled “Thanks to President Obama, smart is the new fabulous -- and why that’s a bad thing in politics,” I wrote:
While I’m not convinced President Obama’s team is any smarter than the Bush team, I am, however, convinced that it doesn’t matter. Did Soviet central planning fail because the Politburo was staffed with idiots? Of course not. It failed because central planning and socialism doesn’t work due to what economist Ludwig von Mises called the economic calculation problem.
The economic calculation problem is a criticism of socialist economics, or more precisely economic planning. It was first proposed by Ludwig von Mises in 1920 and later expounded by Friedrich Hayek. The problem referred to is that of how to distribute resources rationally in an economy. The capitalist solution is the price mechanism; Mises and Hayek argued that this is the only possible solution, and without the information provided by market prices socialism lacks a method to rationally allocate resources. (Source: Wikipedia)
The danger of inviting the so-called best and brightest into politics is that they believe they can overcome this economic calculation problem. They think they can succeed in engineering a better world where others have failed – and by a better world they invariably mean a socialist one. They’ll work harder, do more research, bring in the best minds and commit themselves fully to the task. The results of these efforts, of course, are always disastrous, and often bloody. Communism, the most ambitious utopian scheme to date, cost almost 100 million innocent lives.
To go from Stelmach’s 12-member public relations team to the mass murder under communism is a bit of a leap, but the thinking is the same: compel outcomes, through the force and coercion of government, that the market -- the freely expressed preferences of consumers -- won’t achieve or is prevented from achieving due, ironically, to government interference.
Putting aside my general suspicion of political brain trusts, central planning and social and economic engineering, the Council seems like a missed political opportunity. The Stelmach government faces a very real threat from the conservative Wildrose Alliance and risks losing its conservative base over issues like the New Royalty Framework, growing deficits and spending, not to mention non-fiscal policy like inaction on reform of the Alberta Human Rights Commission. So why not appoint a beloved Alberta figure like Preston Manning to chair the Council? I don’t find myself in agreement with Manning much these days, but he’s as qualified to sit on this Council as anyone and his appointment would have signalled to conservative voters that the party hasn’t abandoned its base entirely. The appointment of two former Liberal cabinet ministers to the Council, Anne McLellan and David Emerson, sends a very different message.
Furthermore, while it is well understood by those outside the political classes that Alberta’s’ energy sector drives the rest of the economy in the province, only three members of the Council come from this sector: Bob Brawn, Jim Gray and Clive Mather. This is no accident. Stelmach has made it clear that he wants to see diversification in Alberta’s economy, with more jobs coming from things like green energy, bio-sciences and high-tech manufacturing. It’s not a bad vision for the province, but the way to get there is to lower taxes and decrease regulatory costs that might keep these industries away. Taxing oil and gas companies into bankruptcy to pay for government schemes to engineer a Green New Deal is the wrong approach.
When the energy sector in Alberta is performing well, there’s a feeling in the province that anything is possible. Oil money in the private hands of fearless Alberta entrepreneurs flows freely into a broad range of business ideas. It’s what made the province wealthy and vibrant. Premier Stelmach’s “think big” model for the future is a throwback to Soviet-era economic thinking and is an insult to the laissez-faire culture of Alberta.
Posted by Matthew Johnston
Posted by Western Standard on July 3, 2009 | Permalink
Comments
Matthew, excellent post. I prefer the "no-plan plan" from the Klein days to any government strategy. Stelmach is a politician who wants to do good, and that's what worries me.
Posted by: TM | 2009-07-03 1:35:26 PM
Stelmach is cut from "collectivist" cloth.
Nuff Said?
Posted by: The original JC | 2009-07-03 2:29:45 PM
I couldn't agree more with this post!
The irony is that the majority of the government finance committee was dismissed, rather than having any ability to give input regarding the February budget. In reality, Chief of Staff Ron Glen, and Minister Snelgrove wrote the budget themselves and then sent Iris under the bus to deliver it - snotty comments about the Feds and all. This was backed up by Nigel Hannaford on Alberta Primetime who said, "I'm not sure why were grading Iris on her performance, given almost everyone knows that this budget was exclusively written by Ron Glen and Lloyd Snelgrove." A little too much hubris....just remember, pride goeth before the fall!
This new council is another attempt at social engineering, taxing citizens and only exploring one particular point of view (anti-business, anti-free-market, anti-limited government) as all of these Liberals gather to give their input on how to spend Alberta's money!!!!!! I'm not really sure why the government is so caustic towards the Feds but they are not doing themselves any favours in acting this way. The worst thing about all of this is that the government, nor the party, seem to realize how this is contributing to the demise of the PC Party of Alberta and the entire province.
Although I think the Wildrose Alliance Party definitely has some challenges to be a viable option in the 2012 election, with these kinds of decisions being made by the PC's, don't be surprised as they continue to gain momentum in membership sales and fundraising.
I've been a political activist for 10 years but this has got me so angry I think I might just sit on the sideline and watch the PC train wreck for a change!!!!!
Posted by: libertybelle | 2009-07-03 3:42:48 PM
Looking at some of those names... What the hell is Eddie doing?
Posted by: Richard Evans | 2009-07-03 5:41:36 PM
When the energy sector in Alberta is performing well, there’s a feeling in the province that anything is possible.
Posted by Matthew Johnston
When oil is $150 a barrel a chimp could make money in the oil business. The world however can't sustain $150 a barrel oil for long. Oil will be staying in the $60 - $75 range for the foreseeable future. In that price range Alberta is uncompetitive. Stelmach can appoint as many councils of "experts" as he wants. Unless Alberta diversifies the province is kaput. Nuclear is the answer to large energy projects not scooping goo out of the ground that requires as much energy inputs as you get as an output.
Posted by: The Stig | 2009-07-03 5:56:58 PM
They are trying to look busy, this is what politicians do when they are unsure. Committees are formed , study groups , panels ,etc... we need to throw the bums out and elect new MLA's ! These guys don't know how to run the province with out taxing the hell out of the golden goose so they look busy while the people are watching.
http://www.daniellesmith.ca/
Posted by: Calgary Libertarian | 2009-07-03 7:22:09 PM
These guys don't know how to run the province with out taxing the hell out of the golden goose so they look busy while the people are watching.
Posted by: Calgary Libertarian | 2009-07-03 7:22:09 PM
Let me be the first to second that! :)
Posted by: The original JC | 2009-07-03 8:09:08 PM
The conservatives are indeed afraid of the Wildrose challenge! What we are watching now is either a defense of extreme conservatism or, a race to put in as many pritized policies as they can before they get ousted.
Posted by: cyberclark | 2009-07-04 7:45:55 PM
Cyberclark,
The PC's are not afraid of the Wildrose challenge at all - they are completely oblivious as to what's actually going on out there!!!! (There's so much, I wouldn't even know where to start with making my case.)
These guys are drinking nothing but kool aid - Jim Jones would be proud. Ugh.
Posted by: libertybelle | 2009-07-04 9:23:12 PM
The chances of diversifying the economy went out the window when the privatization of the power lines took hold.
We now have the highest electrical rates in north America! How can one possibly start a new industry in that climate?
Now, with their move to force every one onto contracts at .10 and .12 cents a kWh, they have made a bad situation worse.
Looking down the road the Edmonton sale of it's electricity to Capital city will ensure the council cannot be drawn into utility arguments in the future.
After 30 years of Conservative rule we are flat broke heading for total privatization of services including health insurance.
Posted by: cyberclark | 2009-07-05 9:49:14 AM
Maybe total privatization of services is what we need. The step towards a seniors' drug system by insurance is the first step.
The PC's are on the right track - I voted Wildrose Alliance last time but I'll be voting PC this time.
Posted by: Claire Benson | 2009-07-12 4:42:20 PM
on oct 14 is there anything stelmac will say we can believe i have my i dont think so any question that he will be asked he will respound with another question he is a politician you never get good respounce from them
Posted by: denis | 2009-10-14 1:21:04 AM
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