I am just loving these latest gas prices this past week. I was shocked last week when all of a sudden prices started falling at the gas pumps, seeing prices like $1.30 per litre was welcomed as my fuel bill was worrying me–effecting my overall budget–now seeing them fall even further is music to my ears. From the weeks of a $1.50 per litre, my budget was being hammered as I was dealing with low wages, less demand for local goods, higher taxes, and everyone spending less because of all of this. In the short term the extra money saved will benefit, and right now I could care less for “Petrol Loonie” as our foolish governments banked all of their eggs into one basket. Sure, I never voted for the Cons., but no Canadian who voted for them can complain as this is what they got in the end; in the end, Alberta hurts, and the Cons. will have to raise taxes to evoke rounds of Corporate Welfare to bail out their sponsors in the Oil Industry, but that is the price we all will pay. I still do not feel one bit of sympathy for them.
For now, I relish in the thought that energy prices are finally dropping. Even with the lower Loonie the cost of gasoline will keep the scales of my budget ledger well into the black, and I can use that money to pay down on my personal debt created when the whole economy melted away at the start of of this in 2007. I know this will be a blip on the chart overall, but I enjoy the relief as my budget is less taxed.
Sure there is the other side of the argument: the Federal Cons. will either have to cut public programs, or raise taxes to make their promises as oil revenue shrinks, and many people who are making their living off of the natural resources will need to migrate away to other parts of the country that will now experience a boom as a result of the change. Manufacturing should start to flourish again as the Loonie drops, and local economies away from the oil industry should start to shift back to prosperity again in my local economy. But who do I believe when each side claims they are right, as the facts only support their side? My B.S. meter goes into the red every time I hear it.
I was also thinking of the day Thomas Mulcair said Canada could be suffering from Dutch Disease. Today could be the Litmus Test of that theory, as the stock markets crumble their gains away and fears that the global growth is slower than expected, this could prove once and for all how Canada will stand during the latest changes of economic weather (with its Oil sector). Many outside organisations are starting to see Canada as suffering from Dutch Disease, as much as I hate to admit it, I see it for what it is, this could be true. Please see the links at the end of this post for more information about Dutch Disease, and how the Canadian Government views this label.
I have lived and worked on the side of the economy that has been struggling for so long since the market crash and meltdown of 2007 that when I seen the price drops in gasoline prices, and manufacturing production starting to take off again, I breathed a sigh of relief. This could be the turnaround that we needed to get us back into the game, no thanks to our “One Track” Government. So even if this is a small blip on the charts and graphs, and Oil prices climb up again, at least in the short term my bottom line will be showing black–a nice feeling.
Perhaps too, those hart throbbing oil propaganda commercials will stop spewing out onto our media. That would be nice. But I watch commercial free content anyway. LOL
Added Oct 16, 2014: Analysis – Loonie, oil prices could fall much further: Don Pittis
Canada Has Dutch Disease, Bank Of America Declares
Kelly McParland: NDP needs a new theory as low dollar puts a damper on Dutch Disease
Thomas Mulcair’s Dutch Disease warning supported by OECD report
Wood Buffalo mayor questions NDP leader Thomas Mulcair on use of ‘Dutch disease’
Canada Dutch Disease? OECD Says Yes
Mulcair should drop the ‘Dutch disease’ rhetoric