Alberta Productivity

Allen Schultz

June 19, 2022


The Federal Government has recently announced  their affordability plan for Canadians.  The reason for announcing an affordability plan is because Canada is experiencing inflation that has never been seen for at least 30 to 40 years.   

In order to understand the issue of why Canada is experiencing these issues we would have to understand the economic cycle within the context of a long-term debt cycle where we find ourselves today.  While MPs offer their opinions of the affordability plan, the take-away from understanding the economic cycle is to not unbalance the deleveraging. 

The affordability plan offered by the Federal Government does not tackle the issues that would lead to improving Canada's productivity which is what is actually needed.

Alberta should be investing to improve Canadian productivity

Alberta needs to reverse  post-secondary education system cuts to guarantee necessary skills are available for industry to improve productivity. 

To promote the migration of workers or work within Alberta, Alberta needs to promote more work-from-home practices and by incentivizing universal high-speed network infrastructure to rural areas. 

Most importantly however, is the need to reduce tax on capital equipment in order to reverse the low equipment investment rates that have occurred as a result of the high tax rates on investments in Canada.  Alberta has no provincial tax rates on capital equipment, but Alberta can challenge the Federal Government to eliminate the GST for capital equipment (computers, industrial machinery, transportation, etc.) and perhaps adjust the capital cost allowance formula for business to improve investment in productivity and thus providing sufficient balance during this part of the economic cycle.