William D. Marriott is a retired economist who specialized in public policy analysis of the oil and gas industry.For the 200,000 new Albertans who immigrated to Canada in the last ten years, the words “Distinct Society” are largely meaningless. For the other 800,000 Canadian folks who swelled Alberta’s population during this time, the words Meech Lake and associated debates don’t necessarily bring fond memories. These defining ideas of the first unity challenges to Canada seem like ancient history. But are there any lessons for the Alberta debate today? And a million people in ten years — a 25% increase — why do all these people keep flocking to Alberta?In a recent Ottawa scrum, Bloc Québécois leader Yves-François Blanchet was asked if he had any tips for Albertans wanting to secede from Canada. After the widespread mocking laughter subsided, he said: “The first idea is to define oneself as a nation. Therefore, it requires a culture of their own.” So far so good. But he couldn’t resist a denigrating stereotype by saying, “And I am not certain that oil and gas qualify to define a culture.” No laughter at this point; this was profound truth. Rest assured that Quebecers will elect a secessionist government this fall, not because of a rising independence sentiment, but because on this issue, they don’t want to be upstaged by those hayseed oil and gas hicks out West.But what is striking about Mr. Blanchet’s comments is that the central ideas that drove the Quebec debate so long ago have since receded in favour of “culture” and “nation.” Two terms that have resolved into meaninglessness because they were hijacked for political purposes. The first by endless claims about Canada’s multicultural society and the latter by Indian bands who see themselves as “Nations.” Even Stephen Harper’s later attempts to appease Quebec with the “Québécois nation motion” failed to mollify the Bloc.But what if he hit the nail on the head but just didn’t look deep enough at the antecedent conditions that are necessary to develop a thriving oil and gas industry? After all, there is oil and gas under Manitoba, Nova Scotia, and Quebec, and yet there is no industry. How do we explain that if not by cultural differences? Can Alberta’s history shed some light?.The earliest settlers to Alberta after the indigenous peoples were the American whisky traders who were unceremoniously kicked out by the North-West Mounted Police. The next group, epitomized by the freed slave John Ware, were Americans again, this time in the form of cattlemen. Mr. Ware drove cows all the way from Texas to Calgary but decided that Millarville was the best place on Earth to settle. He liked the freedom to work and benefit from his substantial skills as a cowboy.Even the arriving homesteaders, who created no end of trouble for the cattlemen, were largely European rather than Laurentian Canadians, driven from oppressive regimes towards the hope of a better life. But they were tough — essentially living in a hole while they earned the right to own their personal section of land. And another American promoter, Guy Weadick, created the Calgary Stampede as a throwback to the long-gone ranching economy. While the use of the Stampede and culture in the same sentence may cause involuntary gagging, the Stampede indeed provided a much-needed anchor to the evolution of the modern sport of rodeo. Then again, if you want high culture, both the Bloody Caesar and Ginger Beef were invented in Calgary.And the Americans came again with their oil industry expertise and capital. Imperial Oil drilled 133 dry holes before the Leduc discovery. Even the northeastern BC gas industry couldn’t develop until the Alberta Gas Trunk Line created a viable way to transport gas through Alberta and then on to both eastern Canada and the United States. And the oil industry evolved again with the development of the technology to separate oil from the sand at Fort McMurray. This was a huge technological and engineering accomplishment.It is undeniable that many of our attitudes, perspectives, and resulting governance are a product of American influence. And yet it is an Americanism tempered by Canadian values. The best of both worlds. And our oil industry shows that..Over the years, Albertans developed the single most productive industry in Canada, along with the highest exports. At the same time, it is the most heavily regulated and taxed. But it can proudly claim to have the highest environmental standards in the world, along with the highest safety standards for its employees. At the same time, Quebec’s claim to fame is dairy supply management and the heavily subsidized Bombardier.Alberta’s economic history is still being written, most recently with the development of AI data centres and more expansion of our tourist industries to exploit our world-class scenery. So what is the Alberta secret?It turns out that economists are very curious about what causes some economies to succeed and others to stagnate. It turns out it is very dependent not only upon wise fiscal and taxation policies but also on the underlying legal and institutional foundations of society. Not all institutions and laws, but only those that support individual freedoms to make economic choices. For example, property rights, business and labour freedom, government integrity, and judicial effectiveness. (The underlying healthy human drive for self-preservation and security is universally assumed as well as the unhealthy drives of greed and avarice.) All of these things together are termed economic freedom, and studies are routinely undertaken to measure the economic freedom of national and sub-national jurisdictions..Not surprisingly, it turns out that in Canada, the province with the highest economic freedom is Alberta, and the lowest is Quebec. Further, seven of the 10 Canadian provinces rank below all 50 US states in all-government (federal and state/provincial) economic freedom.Not that this should come as a surprise, but it confirms that Canadians generally don’t really want economic prosperity and, in fact, elect governments that suppress it. What exasperates Albertans is that the ROC, while pursuing MAiD economic policies, also wants us to join the suicide pact. We won’t do it.So why do people continue to come to Alberta? It has nothing to do with esoteric studies on economic freedom. Word of mouth confirms that this is the place where you can build a life for yourself and your family. If you want freedom, opportunity, and personal responsibility, this is the place to be. It was true for John Ware in 1882, and it is still true today, in the only truly distinct society in Canada.William D. Marriott is a retired economist who specialized in public policy analysis of the oil and gas industry.
