BY SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT THE ALBERTA ENTERPRISE GROUP

At Alberta Enterprise Group (AEG), we believe strong economies are built on fiscal responsibility, productive enterprise, and smart public policy.  That is why the recent insights shared by renowned investor and macroeconomic thinker Ray Dalio deserve our full attention.

In his latest LinkedIn post, Dalio breaks down the complex dynamics of how countries go broke – not through a single event, but through a predictable sequence of missteps he calls “The Big Cycle.” It’s a must-read for anyone concerned about economic sustainability.

Dalio identifies a pattern: governments spend more than they earn, borrow to make up the difference, and eventually rely on money printing to cover escalating deficits.  This leads to inflation, eroded purchasing power, and a loss of trust in the currency – often followed by social unrest, polarization, and decline.

His message is clear: fiscal indiscipline has consequences, and those consequences tend to fall hardest on the middle class, entrepreneurs, and future generations.

So, what does this mean for Alberta?  It means that clearing the way for Alberta’s businesses isn’t just smart policy – it’s essential to avoiding the very decline Dalio warns about.  At AEG, our members are on the front lines of the real economy – building businesses, employing Albertans, and investing in the future.  We know that productive output, not debt-fueled spending, is the true foundation of prosperity.  That’s why AEG continues to champion the reduction of red tape, the removal of investment barriers, and policies that unleash the full potential of private enterprise. While many governments are doubling down on borrowing and short-term fixes, Alberta must choose a different path – one rooted in real economic activity, export-driven growth, and value-added innovation.  Empowering Alberta businesses is how we safeguard prosperity.

We encourage all our members and readers to take a few minutes to reflect on Dalio’s post. The lessons are global, but the implications hit close to home.

📖 Read Ray Dalio’s full post: “How Countries Go Broke – The Big Cycle in a Tiny Nutshell”