Thursday, June 25, 2009

"Welfare" by any other name ...


I'm sorry ... what's the word for when the government shovels money in the direction of people just because they need it?

Drilling incentives to be extended in Alberta to encourage exploration

EDMONTON - Alberta has announced a one-year extension to two incentive programs designed to breathe life into a sagging natural gas drilling sector that has been ravaged by low commodity prices.

The move means the province would pony up as much as $3 billion between now and March 2011, Energy Minister Mel Knight told reporters Thursday.

In other news, welfare is sometimes bad. I heard that somewhere.

16 comments:

Kelly said...

The term is called "vote buying".
Also see "auto-sector" and "Quebec".

Cameron Campbell said...

Kevin, and yet when it's done in Quebec and Ontario it's THE WORST THING EVER AND A CLEAR SIGN THAT THE PEOPLE IN THE EAST OF CANADA ARE STUPID SOCIALISTS WHO ARE EVIL AND DUMB.. but when it happens to Alberta, why that's just awesome.

Kind of like how the money for the oil sands development just appeared out of no where. Spontaneous like.

Ti-Guy said...

Also see "auto-sector" and "Quebec".

Can you expand on that?

...No, of course you can't. You don't have to prove you're informed. All you have to do present a façade of being informed.

Reform schools. That's what we need.

burpster said...

This is just another scam to funnel money to the oilco's. It's the same thing that was done in the mid 80's when I was a driller on the rigs.

If I recall correctly, when a oilco buys it's leases it also has a commitment to drill so many wells a year. During the 80's oilco's were being paid to drill wells they had to drill anyways.

mikmik said...

Not happy at the attention you direct towards Edmonton

Called an artiste drawing a cheque

Don't get stupid or you WILL vote for Stelmach. That are your choices in AB

mikmik said...

Auto sector, LOL

wv undeniable right to govern

Kelly said...

Sure Ti-Guy. The government will subsidize/co-chair/sponsor (my personal favourite)/bailout... certain sectors of the economy for political gain. Political gain being votes in the next election. Votes being check marks beside their name on the ballot.
I can't really dumb it down more than that. Maybe if I used fancy French words in my response I would be seen as more sophisticated? Or maybe my response is missing a little "je ne said quoi"?

Cameron, I didn't think I said I supported it. FYI, it's provincial money, not federal which makes your whole east/west argument stupid, evil and well, dumb.

Ti-Guy said...

I can't really dumb it down more than that.

Oh, I doubt that.

Kelly said...

Maybe Alberta's oil industry is "too big to fail". SNORT.

liberal supporter said...

But it makes money. So why the bailout?

Holly Stick said...

Natural gas is not the same as oil. I believe its price has been quite low. It's also cleaner than oil.

Kelly said...

Holly, you are correct. Oil is not the same as gas and yes, it is quite low (about two-three bucks). At these low prices, companies are starting to shut in production because it costs more to extract than it's worth.
liberal sup. the bailout is targeted at the junior gas producers. These companies are NOT making money and many have gone out of business. This is Stelmach's effort to correct a faulty royalty change that went into effect two years ago when prices were at record levels.
That being said l.s., are you suggesting there should only be a bailout to companies that lose money (ie. GM, Chrysler...)? That seems just as silly. Of course, this has nothing to do with economics. The government will be paying for those laid off workers one way or another. It looks better for them if they "inject a stimulus plan" than to just hand out an e.i. cheque. That way the politicos are justifying their own paychecks.

Anna said...

"the bailout is targeted at the junior gas producers. These companies are NOT making money and many have gone out of business. "

If a small company cannot make money doing what they're doing, regardless of sector, even after: cutting wages, cutting expenses, etc. I just don't get why would the government give them money to lose??

If I own a retail store selling widgets and I selling these widgets for less than it costs to operate the business, wouldn't I be a dumb business person? Is it the government's responsibility to ensure I keep my store open?

Anna said...

*I sell

Kelly said...

Yes Anna, many are scratching their heads. Like I said, it's not about economics; it is about politics, optics and power. Just like employment insurance. Neither the Liberals nor the Conservatives give a shit about E.I. It's an issue that will give them traction in the media and with the voters. See above.

Saskboy said...

Oil tycoons are people too! Leave Oily Alone!