Trickle Down Economics In UCP Budget

Media Release

October 29, 2019



EDMONTON – The recent budget brought forth by the UCP government has the Green Party of Alberta rejecting both its premise and details.

Will Carnegie, Interim Leader of the GPA, says “This is a budget that is a return to the so-called trickle-down theory of economics that has been thoroughly disproven in North America for more than three and a half decades. The slash and burn style of governance puts us on a road to nowhere and in fact generates economic instability and hardship. Contrary to it being promoted as a ‘jobs budget,’ it is a jobs killing budget.”

The UCP plan to cut the corporate tax rate one per cent per year through 2022, reducing the rate from an already too low 12 per cent to a minuscule 8 per cent. Carnegie says the UCP fails basic economics by implementing this approach. “We do not have a spending problem in Alberta, we have a revenue generating problem. The situation will be even further exacerbated thanks to this significant misstep. They are, in effect, generating conditions for a recession by starving the government of basic resources to run needed programs and undercutting the means of economic stability.”

The Green Party of Alberta are alarmed at the UCP’s overt prioritizing of the welfare of corporations over people. In the works is a 2.8% cut to program spending over four years. However, they also intend to de-index programs, meaning expenditures will not be adjusted for the cost of living. This means a very deep cut of between 8-10 per cent, meaning much damage will be done to the foundations of the economy.

“This is a budget that can be said does not deal in reality. Reducing the provincial civil service by 20,000 jobs at a time when Alberta’s population is going up is nonsensical and destabilizing,” says Carnegie. “This is a dangerous approach to budgeting that will result in the further destabilization of our social systems. There is no forward thinking in expecting stability or growth from trickle down economics.”

Just this week, Husky Oil, based in Calgary, announced they would not be increasing investment in Alberta and would be laying off hundreds of employees, despite receiving a $233 million tax cut from the UCP.

“Instead of attacking hard-working civil servants, university students, and municipalities, we ought to be making investments aimed at pivoting us into the clean, green economy. What the UCP are giving us is a movie that we have all seen before and we know it does not end well,” says Carnegie.

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For more information, please contact:

Will Carnegie
Interim Leader of the Green Party of Alberta, Candidate of Record in Calgary-East
Phone: 403-973-6035

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