Quote:
Originally Posted by goodgrowth
Saying "we need to diversify the economy" is typically an oxymoron (similar to having a "Bureau of Competition") when used because people mean "government should be diversifying the economy". Any top down approach (ie government) is going to have the opposite effect of "diversification". If you really wanted a diversified economy you would create a 100% even playing field(ie flat tax and no tax credits) and literally do nothing else. No intervention to save dying industries in the name of jobs....no intervention to "invest" in new industries to create jobs.
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The government can provide direction, and can give grants or funding to kickstart change.
In the late 1980s, Moncton had a near death experience. Moncton traditionally was a railway town with 5,000 people employed at the CNR shops facility. It closed, and in short order, CFB Moncton and the Eatons catalogue warehouse in the city also closed, with the loss of about 2,500 other jobs.
7,500 jobs is a huge loss for an urban area at the time of about 80,000 people. Obituaries were being written for the city, and comparisons were being made to the languor of industrial Cape Breton, but a small group of civic business leaders decided that the time was not right to give up the ghost, and with the help of Premier Frank McKenna and federal assistance plans, this railway town reinvented itself with IT and customer contact jobs, and bolstered some pre-existing strengths in health care, education, distribution, transportation, banking and insurance to create a regional economic success story. The population of the city has doubled since the 1980s.
Before the CNR shops closure, Moncton had been complacent about its role as a railway town. The near death experience of the shops closure gave the city the kick it needed to explore other opportunities and move on into a different type of future; more successful than it was before.
The same can be true for Alberta.