Economy
Federal carbon tax hike will hurt future generations
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From the Fraser Institute
” since 2005, emissions from China increased by a staggering 71.7 per cent. It’s absurd to think that, even if Canada could drive it’s GHG emissions to zero, there would be any measurable impact on the global climate. “
Despite calls from seven of Canada’s premiers (including one premier from his own party) to scrap the upcoming carbon tax hike, and the threat of a non-confidence vote by the Opposition in Parliament, Prime Minister Trudeau has doubled down as he tries to convince Canadians that somehow this tax, which is set to rise from $65 per tonne of greenhouse gas emissions (GHG) to $80/tonne on April 1, will really be good for them.
Speaking with reporters in Calgary (not coincidentally Premier Danielle Smith’s backyard), the prime minister said, “My job is not to be popular,” adding “My job is to do the right things for Canada now and do the right things for Canadians a generation from now” to “deliver that better future one generation from now, two generations from now.”
But Trudeau’s argument that somehow GHG reductions, which might stem from Canada’s carbon tax, will yield appreciable benefits of any kind—economic or environmental—now or in future is nonsense.
Why?
Because Canada’s share of global GHG emissions is slowly declining and small relative to the world’s larger emitters particularly China. Indeed, in 2021 Canada’s emissions comprised 1.5 per cent of global GHG emissions compared to 26 per cent for China (in 2018). And since 2005, emissions from China increased by a staggering 71.7 per cent. It’s absurd to think that, even if Canada could drive it’s GHG emissions to zero, there would be any measurable impact on the global climate. And no impact on climate means no improved environmental benefits for future generations.
Economically, the prime minister’s argument is even less compelling than the proclaimed environmental benefit. According to a study published by the Fraser Institute, implementing a $170 carbon tax would shrink Canada’s economy by 1.8 per cent and produce significant job losses and reduced real income in every province.
The cadre of Trudeau government policies, including the carbon tax and imposition of federal bills C-48 (which bans large oil tankers carrying crude oil off British Columbia’s north coast, limiting access to Asian markets) and C-69 (which introduces subjective criteria including the “social impact” of energy investment into the evaluation process of major energy projects), combined with impending regulations such as GHG emission caps, are contributing to a collapse in business investment and ultimately economic stagnation in Canada. Per-person gross domestic product (GDP)—a broad measure of living standards—has barely budged in the last nine years and in fact stood in 2014 at $58,162, which is $51 higher than at the end of 2023 (inflation-adjusted). In other words, living standards for Canadians have declined.
Capital investment, which contributes to economic growth and higher living standards, is also declining. A 2021 Fraser Institute study showed that the growth rate of overall capital expenditures in Canada slowed substantially from 2005 to 2019, and the growth rate from 2015 to 2019 was lower than in virtually any other period since 1970. Moreover, as recently as 2000 to 2010, overall capital investment in Canada enjoyed a substantially higher growth rate than in other developed countries, but from 2010 to 2019, Canada’s investment growth rate dropped substantially below that of the United States and many other developed countries. Corporate investment in Canada as a share of total investment was also the lowest among a set of developed countries from 2005 to 2019.
Far from delivering environmental or economic benefits for Canadians “one generation from now” or “two generations from now,” Prime Minister Trudeau’s policies have thrown serious shadows over the future economic prospects of Canadians who will find themselves less well-off and less economically capable of adapting to predicted climate risks whether manmade or natural.
Author:
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Business
Argentina’s Javier Milei gives Elon Musk chainsaw
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MxM News
Quick Hit:
Elon Musk made a dramatic appearance at the Conservative Political Action Conference (CPAC) on Thursday, wielding a chromed-out chainsaw gifted by Argentina’s President Javier Milei. The prop symbolized Musk’s commitment to slashing bureaucratic red tape through his Department of Government Efficiency (DOGE).
Key Details:
- Musk received the chainsaw from Milei before his sit-down interview at CPAC in Maryland.
- The chainsaw was engraved with Milei’s catchphrase, “Viva la libertad carajo!” which translates to “Long live freedom, Goddammit!”
- Musk brandished the chainsaw on stage, declaring it the “chainsaw for bureaucracy” to a cheering conservative crowd.
Diving Deeper:
Argentina’s President Javier Milei presented the symbolic chainsaw to Elon Musk ahead of his interview at CPAC, reinforcing their shared vision of reducing governmental influence. The chainsaw, emblazoned with Milei’s signature slogan, was meant to represent Musk’s mission with the Department of Government Efficiency (DOGE) to cut waste, fraud, and abuse within federal agencies.
Musk enthusiastically accepted the gift and held it aloft, declaring it the “chainsaw for bureaucracy.” The bold gesture was well-received by the conservative audience, with Musk adding a simple yet effective rallying cry: “Chainsaw!” The theatrics were in line with his commitment to DOGE’s mission of downsizing federal bureaucracy, drawing inspiration from Milei’s aggressive government-cutting measures in Argentina.
Milei’s fiscal conservatism has gained international attention, influencing Musk’s approach to DOGE. The Argentine president’s radical budget cuts and advocacy for limited government resonate with Musk’s goals for the United States. By symbolically passing the chainsaw to Musk, Milei reinforced a partnership rooted in economic freedom and governmental reform.
Musk later posted a photo of himself with the chainsaw on his social media platform, X, captioning it, “This is a real picture,” underscoring his commitment to his bureaucratic overhaul agenda. The image quickly went viral, amplifying the message of aggressive government reform.
The bold display at CPAC not only solidified Musk’s role as a disruptor within the political landscape but also strengthened the ideological bond between Musk and Milei, signaling an international alliance against government inefficiency.
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