Déjà vu
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Déjà vu all over again?The boom and bust in energy prices experienced recently has its parallels in the boom and bust of energy prices in the 1970s and 1980s. The earlier boom period saw the Government of Alberta struggle with restraining spending and so became heavily dependent on high energy prices. In 1986, energy prices crashed the government suffered a string of large deficits that was followed by drastic cuts to spending. From 2000 to 2008, the government enjoyed another boom in energy prices and again found it difficult to restrain spending.As the 2009 Alberta budget nears, the recent decline in energy prices threatens the government with repeating the earlier experience of deficits followed by dramatic spending cuts. As it prepares its budget, the provincial government has an opportunity to learn from the past and to quickly and decisively put Alberta’s finances on a path toward a much smaller reliance on energy-related revenues. But will the government recognize the pitfalls, and take advantage of the lessons learned from that experience, or is it doomed to repeat the past? Join Department of Economics Professors Herb Emery and Ron Kneebone as they discuss this subject in a free lecture on Thursday, April 2 from 9:30-10:45 a.m. in the CIBC Hub Room of the Rozsa Centre. Light refreshments will be served; please email sppcommunity@ucalgary.ca or call 403-220-2540 to RSVP.
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April 1, 2009