With Alberta going all-in on its sovereign wealth fund (posted yesterday), should Saskatchewan take another look at one of its own? We had one, but it didn’t last long, and turned into something of a slush fund for Crown corporations, apparently. I dug up this discussion paper that was written by U of R professor Stuart Wilson which is actually pretty good. I republished the entire paper, with his permission, on Pipeline Online.
Perhaps ironically, Norway’s massive sovereign wealth fund was originally modelled on Alberta’s. And that fund is now worth US$1.42 trillion dollars (with a “t”). (Norway has less oil than Alberta).
No. If the slush fund vanished in the past, someone will inevitably make it vanish in the future.
Dennis – Or they will waste it/ or inflate it away.
Brian notes, as have my liberal friends back east, that Norway has a $1.4 T slush fund. Why doesn’t Alberta have that much in the bank? Those same friends say it is because our taxes are too low!
– Norway taxed their high rolers and achievers to death. It’s a massive transfer of wealth from citizens to the government.
– Their oil is lower cost conventional oil so larger margins.
– Quebec has never demanded that Norway pay them friendship dues (equalization payments) of $10B per year.
– That $1.4 T will only buy half as much as it would three years ago.
Pay off the debt, then see about saving for a rainy day. Why treat public finances different than your own, Margaret Thatcher would say.
I don’t think governments should have any funds other than those necessary to do the jobs needed to keep the infrastructure viable.
Amen
Saskatchewan doesn’t normally get the big surpluses they see in Alberta. Our oil and gas industry isn’t big enough to see the same boom and bust cycle. I think a better idea would be to control spending and deficits through legislation. Stop allowing the provincial government to ramp up vote-buying spending during good economic years and then increase the debt during bad years. Require the provincial government to pay off a portion of the public debt in good years instead by limiting per capita spending.
If the government wants to increase spending in healthcare, for instance, then they have to reduce spending in another area to keep the per capita spending balanced.
Sensible approach. After all, sooner or later the NDP will be back in power. A large provincial wealth fund will simply allow them to splurge huge amounts of money on whatever worthless socialist scheme is the fad of the day. If they have to start deficit-spending to indulge their delusions, the voters may start questioning their competence that much sooner.
Does Saskatchewan have debt? that should be paid off first before creating an opaque slush fund that will get wasted on whatever the latest shiny thing is.
This ^^^
No. This is just a ploy to appear as though a gov’t is being prudent, but all this does is create a fund to be raided later. And just like in AB, it will be wasted on public sector unions and other far-left stupidity.
Any excess funds should be returned to the people, pay down debt, and lower taxes.
Period.
Shouldn’t any extra money go to Zelensky and the oligarchs?
If not, you are wanting Russian tanks to be rolling down the Yellowhead.
Just like passing laws against speech, assembly, etc. These things will eventually be turned against you. Saving money for your political opponents to lavish on their supporters is a bad idea.
While you have debt at 3 or more percent there are no good reasons for savings at 2 or less percent. How can this be misunderstood?
No. The voters would spend every penny the politicians didn’t steal.
Pay off the debt. Put the rest away. Pass a law that only the interest can be spent. Put in the law that a 2/3 majority is needed to raid the principle.
Who will be the first fast food outlet in Saskatchewan to start selling Slushies as “Sovereign Wealthies”?