North American Austeriry

North American Austeriry | Ecency

For over ten years, the Canadian province of Newfoundland, my home, was booming because of oil and mineral extraction, and the Canadian federal government benefitted. People started moving to Newfoundland, there was construction everywhere, and that long-neglected place was finally being viewed and cherished for its amazing culture, landscape, and people.

As with any bubble, Newfoundland's has burst with the bottoming out of the price of oil. A province of half a million people faces a $2billion deficit and an aging population. The solution is reminiscent of what the EU did to Greece: Newfoundlanders will pay a levy; there will be $50million cut from healthcare (again, again population); five schools have closed, resulting in some being bused an hour to and from school; rural libraries have shut their doors, cutting off thousands who depend them for information access; and astronomical increases in taxes are all in an effort to somewhat reduce the province's deficit.

This is not the first time Newfoundland has faced seemingly insurmountable difficulties. In 1992, the cod fishery was closed and Newfoundlanders found themselves without their primary industry and without a practice that was ingrained in nearly every facet of their culture. Generations lost their livelihood, similar to the auto industry in Michigan. However, at that time, Newfoundland had the highest rate of home ownership and lowest mortgage debt in the country. People had savings and they owned their homes, so they had something to fall back on.

Unlike the collapse of the fishery, the number of Newfoundlanders who owe on their homes outnumbers those who don't by 2.5:1. The average household owes more than $60K and while most Newfoundlanders were able to squirrel away about $1075 in savings last year, that was during the last year of the oil boom and those savings don't come close to covering the increase in the cost of living that comes with the levy, tax hikes, and impending job cuts.

This was going to be expensive, there's no doubt about that. The lack of planning and saving on the part of the provincial government was shameful. However, the federal government benefitted from Newfoundland's boom, apparently did not pressure the province to budget for a rainy day fund, and - most alarmingly - made no effort whatsoever to aide the province in its budgetary woes. Harkening to Greece, Newfoundland was left to fend for itself when negotiating with banks with no assistance from the feds and no ability to defend its people and their future.

With an aging population, a soon-to-be depressed economy, and an unlivable cost of living, there will be a mass exodus from Newfoundland. A wonderful place with so much to offer, with such rich culture and history, now faces a very dark and uncertain future. My heart breaks for my home and so I say shame on the provincial and federal governments for allowing this to happen. Let it be a lessen to us all that who you vote for now can have consequences that last a generation, and don't fool yourself into thinking it can't happen to you.