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”Some day the sun will shine and have-not will be no more” - Premier Brian Peckford, 1982
“Hurtin’ Albertan with nothing more to lose. Too much oil money, not enough booze.” - Corb Lund
Yesterday was a day of celebration in Newfoundland and Labrador. Within the signing of the Hebron deal, providing the province with increased royalties and an equity stake in the project, the fourth major oil project is officially underway. And oh, how the money rolls in!
This project will almost certainly benefit everyone in this province to some extent. For those who can find high-paying jobs working directly on the project, the benefit is obvious. Similarly, those who provide services to the oil industry- business owners, engineers, lawyers, accountants- should see a nice increase in demand for their services. Then there’s the whole range of spin-off economic benefits for real estate developers, car salespeople, retailers and restaurateurs. Basically, if you’ve got anything to sell, there are going to be a lot more people looking to buy.
Even if you’re not in a business that will benefit directly, there’s a good chance you’ll benefit indirectly. Homeowners have already seen very significant increases in their housing values- on paper, I’m quite a bit richer today than I was even just a few months ago, and I expect values to continue to climb. Recent oil money has also allowed the provincial government to lower income tax rates, putting more money in people’s pockets. Hopefully, we will see continued tax incentives and increased funding to vital services- everybody benefits from that.
Unfortunately, it’s inevitable that some people will get left behind. While we may see some wage inflation as a result of an increasingly competitive economy, for many people it is unlikely that their wages will keep pace with the rapidly rising housing and service costs. This doesn’t just apply to minimum wage earners, either- teachers, nurses, public servants, or anyone working in an industry that relies on business from outside the province are unlikely to see raises that will match market inflation.
There’s another major factor at play here that cannot be overlooked- the influx of money from those returning “home” from “away”. With the promise of 3500+ new jobs and a booming economy, hordes of people who fled Newfoundland in her hour of darkness are looking to return home, pockets filled with Alberta oil riches or Upper Canadian wealth, waving their flags and declaring their love for this province. The influx of money from people returning “home” has been a driving force behind the dramatic rise in housing costs in St. John’s and other pockets across the island. As a result, many of those who stuck around and worked hard to keep things moving forward find themselves priced out of their own market. The influx of “foreign” money has pushed houses and cabins out of reach for many who made sacrifices to stay. We fought for a brighter future, and now find that it may be as much curse as blessing.
There’s a little bit of irony here. Many of us made a principled decision to stay in Newfoundland, even when times were tough. We decided to stay even though we could have made much more money elsewhere, even though it would have been easier to pick up and move to Toronto or Calgary or Fort McMurray. We were the ones who kept the lights on. We were the ones who paid the high taxes, who struggled, who endured. We fought to improve our situation for future generations. We stayed because we thought this rock was worth saving.
I concede that not everybody had a choice to leave- if there was no work, you had to find a way to feed your family. Many people found themselves in difficult situations and did what was best for themselves and their families. But for many, the issue was not that there was no work available here, it was that there was better work available elsewhere. They were not economic refugees- they were economic opportunists.
And there’s nothing wrong with that- self interest always has been the driving force behind migration and general economic development, and I would never fault anybody for making a better life for themselves. I’m glad that those who left can now find the opportunities they want in Newfoundland. But to claim to be a true patriot and economic refugee when you left your home in her time of need rings hollow. You can fly the pink, white and green all you like and plaster jingoistic stickers all over your shiny full-size pickup- you chose to leave. We chose to stay.
Welcome home, brother. Can you spare a dime?
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I thought you were taking today off? Decided to be inflammatory instead? Do I sense a little bitterness, MGL?
How could I resist posting on my favourite topic?
I’m not bitter- no really, I’m not! We’ve done quite well here, and the rising property market only serves to increase the value of my house. I’m genuinely glad that so many people can move back- I just can’t help but think that it can be bad news for many who stayed.
MGL, we both know that most people didn’t leave because they wanted to- they left because they had to. Don’t be jealous that they’ve profited from Alberta. I say good for them.
Lard Black: For every person that left out of necessity, there’s someone who left because they could make $40 an hour in Fort Mac rather than $15 an hour in St. John’s. MG is right when he points out that the “economic refugee” sob story is getting old.
MG, alls I’ll say is- you’ve got guts!
Sigh… I wish things could improve for everyone out there. I also wish I lived there… If we still lived in St. John’s, working in major chain retail stores and the like, I doubt we’d have seen much of that money.
Allison, it’s true that there are those who get left behind during times like this. Not only will those working retail not see much of a wage increase (unless we hit a labour shortage of massive proportions), but the costs for many of the basics- most notably shelter- will continue to rise. I wish I knew what the solution was… it seems to me that the wage gap is growing ever larger.