Spending Like There’s No Tomorrow

When Peter Lougheed died last September, those paying tribute to the revered former Alberta premier summed up his legacy in terms of three main achievements: he modernized a former agricultural economy; he aggressively took on Ottawa when provincial interests were at stake; and he established a political dynasty that still governs the western province more than four decades later. These are impressive accomplishments. But they are not what set Lougheed apart from his peers. What distinguished the former Alberta premier was that even as he dealt with short-term problems, he kept one eye fixed on the horizon and planned for the day when Alberta’s plentiful resources would no longer keep the economy afloat.

A key part of that plan was setting up the Alberta Heritage Savings Trust Fund in 1976 and depositing into it 30 percent of the oil and gas revenues pouring into provincial coffers. The temptation for most politicians is to spend the money available (and sometimes...