November 30th, 2016 ~ Vol. 85 No. 47
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New West Versus the Old West Economy
Rick's Corner
JOHN PUNDYK
Feature Writer
The story goes somewhat like this. In the Old West, the economy always swung between the boom and bust of commodity prices. When the price of timber and coal were high, everyone prospered, when the price fell, everyone suffered.

By contrast, in the New West, the thinking goes, the economy is built on mountain tourism and the influx of new residents who move there for the mountain lifestyle.

Many of them are escaping the urban hustle and noise and very much appreciate their new found mountain tranquility and beauty.

In a perfect world, found mostly in books, these new arrivals come with pockets full of money and income which comes from outside, be it pensions or investments.

When the numbers of these new arrivals reach critical density, they create the need for more services, such as restaurants, hotels, medical services, and all other things which make life easier and more enjoyable.
However, in reality only a few places become entirely “New West”, places like Whistler, Canmore, and in a smaller way Fernie.

In most places, be it in the Alberta Rockies or just across the border in BC, people live and work in an economy which sits squarely in both the New West and the Old West.
continued below ...
This mixed old and new economy makes a place like the Crowsnest Pass affordable for most people, and a place where the new arrivals blend with the old timers.

Think for a second what would be the reality of living and working in a place like Whistler. For the most part, places like Whistler or Aspen are commuting towns, as far as working people are concerned.

People who work there, with probably a few exceptions, seldom can afford to buy a home in a place like that.

Also, along the same lines, residents of the Old West are no less passionate about their beautiful surroundings than the later arrivals.

Just like any idyllic definition, the New and Old West categories refuse to conform to reality.

In practice, the West keeps on producing the goods which the economy at large still needs, even as it attracts new residents who do not depend on the old economy.

Canada is a major exporter of timber, beef, all types of minerals and, most important to us, steelmaking coal.

Exporting resources is not only a part of our history, but also an important part of our future.

Extracting minerals efficiently, and mitigating the environmental impact of the industry, takes a lot of specialized knowledge and this activity makes us no less resourceful than many other leading nations.

Take for example Sweden, a country which is seen, by many, as a paragon of the modern state built on the foundations of social and environmental responsibility.
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Sweden has a long history of iron ore mining and timber harvesting, but has also developed a modern, complex economy based on services such as engineering and precision manufacturing.

Nevertheless, the country has developed a set of policies “so that Sweden maintains and strengthens its position as the [European Union’s] leading mining nation.”

Swedish policy model sees, “mining and minerals industry in harmony with the environment, culture and other industries.”

When we look to combine the needs of the Old West and the New West, we will end up with an economic model which resembles what the Swedes have already developed.

Leading economic nations like Sweden, Norway or Finland continue to rely on their resource industry as they build ever more sophisticated economies.

Governments are always faced with many different and often contradictory appeals as they strive to develop and enact policies which guide the economic lives of their “charges.”

We, the “charges,” are not always appreciative of the difficulties faced by those who govern us, and we are quick to criticize.

Nevertheless, most of us seem to agree that economic activity and environmental protection should not be viewed as mutually exclusive activities.
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November 30th ~ Vol. 85 No. 47
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