Calgary Update: Can Money Create Optimism?

Calgary Update: Can Money Create Optimism?

calgarymomchildIt seems like yesterday when I left school to work in an Ontario economy that was dead. I left for Calgary. Now a  whole new group of young people in Ontario and Quebec are facing the same fate. Many of them 19 to 25 years of age will make the decision to go West to Alberta, or even Saskatchewan to work because they want a great future.

And they’ll get what they ask for in the land of optimism. The fact that these newly rich provinces offer so much is testament to the power of money. Great opportunities and great jobs for those that want them.

Alberta is no Dubai, but it’s economy is booming in Canadian terms and it has the world’s largest supply of crude oil. What an exciting time it is for anyone heading out west. The sunshine, the mountains, and the incredible sense of optimism that money brings. Fuse ideas, money and smart, productive people together and you can do just about anything.  Cash is the fuel of business and you can see how much good money can create.

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The latest stats show Alberta is growing at the same rate as Ontario and Quebec are falling. And with Mexico set to wipe out Ontario’s auto production business, the news can only get grimmer.  Taxation has become a noose around the necks of businesses which struggle to stay afloat.

Calgary’s average household income: $125,733 and no provincial sales tax!

Fortunately, there are still a lot of innovative entrepreneurs here, and the power of 10 million people. However, they’re getting old and high skilled immigrants will not come to Toronto or Montreal when they can get high wages in Alberta or Saskatchewan who are desperate and will pay. If you go, you’d better know someone or you’ll have to live in a trailer. They’re having a housing crisis too.

I wrote in a previous post  that really wise Ontario businesses are setting up shop in Alberta where it’s rated best.  This is exactly what Eastern businesses need to do to stay alive. If you’re an investor or have a business with products/services you can market out West, you should get to it now, before more Easterners realize its potential, and set up sales offices there.  That profit will make them more competitive here in Ontario.

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Energy is Making Alberta Very Rich

The price of oil looks like it will rise, the oil sand is producing and set to deliver oil to China via the Northern Gateway Pipeline. That’s received conditional approval. And shale gas production is booming now too, adding to the incredible fortunes of Alberta.

The province’s famous Heritage Fund earned 16% interest last year and has grown to 17.2 Billion dollars.  That’s a nice nest egg that will fund incredible projects to make their lives much richer and health care much better.

All you need to find a job in Calgary or Edmonton is show up. They’re in panic mode again. And if you want to set up a remote sales office or produce in Alberta, why not do it?

There’s a very big threat on the horizon however. The Liberals and Justin Trudeau could win the next Federal Election. Turn the clock back to the 70’s and 80’s when PE Trudeau confiscated western wealth and thwarted their  growth.

In October 1980, Prime Minister Pierre Elliott Trudeau introduces a tougher, more rigid national energy program (NEP). During a decade-long energy crisis, the federal government wants more control over the country’s energy. Ottawa also says that Alberta’s oil profits must be shared throughout the country. Alberta’s Premier Peter Lougheed says he’ll take Trudeau’s NEP to the courts. In the House of Commons, Trudeau surprisingly responds that Lougheed is taking a “reasonable and rational approach.”

This could happen again with his son at the helm.  The west is much more powerful now and is Canada’s economic engine, so any attempt to confiscate their wealth will bring war. War fueled by social media.

With the Ontario and Quebec debt continuing to soar, we can only surmise that history will repeat itself.

Check out the current market update and Calgary Housing Forecast for 2018 and beyond.

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