[jseutter]

So production isn't really subsidized in the traditional sense. Producers actually pay quite a bit in royalties and taxes, and employ people, who also pay taxes. It's more about these externalities like pollution that aren't factored into the total cost of production. Alberta has oil, and when the price is high, oil producers pay top dollar for people, which sucks all the air out of the marketplace, and makes it really difficult for anyone not in oil to stay in business because their people just quit for more money. Then when the price drops, a bunch of people get laid off, some try to start businesses, and the whole cycle starts again. It's difficult to have a well-rounded economy in this situation.

I agree, there's probably a good reason I'm not dictator of Alberta. Several reasons, actually. Something something dehumanizing people something..

[pstuart]

I guess letting the externalities go as a freebie could be considered a subsidy but I hear ya.

[HPsquared]

With that definition, a completely anarchic state would have subsidies all over the place. Sounds wrong.