At an event at the Economic Club of Canada yesterday, Ontario premier Doug Ford asserted that the federal carbon price backstop – which will affect Ontario – will plunge the country into recession. That Ford wasn’t laughed out of the room is a bit more than curious, because that kind of assertion is beyond ridiculous. BC has had a carbon tax for ten years, and not only is not in recession, but is leading the country in economic growth. Quebec has a carbon price using cap-and-trade, and is also doing quite well in terms of its own economic growth. Alberta’s carbon tax didn’t cripple its economy either, and what fiscal troubles it has are related largely to the low world price of oil that stems from a global supply glut, the temporary price differential issue having pretty much been resolved before the production cut even went into effect, now that the American refineries are back in operation. “Oh, but there’s a report that says it’ll slow the economy!” Ford says – except that report says it’ll be about by 0.02 percent at a time when the economy is growing by two percent.
Ford’s environment minister later took to TV to try and falsely insist that the federal Parliamentary Budget Officer projected a hit to the economy from a carbon tax (he actually said that it would only have an impact if revenues weren’t recycled in an efficient manner), and that BC’s carbon tax didn’t stop its emissions from growing (also false, because the emissions are far lower than they would have been without the price, while their economy continued to grow). So Ford is relying on lies to feed his false narrative that is trying to get the population angry so that they’ll vote out Trudeau. And what was Catherine McKenna’s response? Her same line about Conservatives wanting to make pollution free, and that they have no plan for the environment. So, the lies stand on the official record. Slow clap, everyone.
"When asked if Mr. Ford has any experts to back up his claim, his office pointed to a 2018 report from the Conference Board of Canada that said a federal carbon tax could shrink Canada’s GDP by as much as $3-billion."
That's 0.1% of GDP ($2.2tr). https://t.co/pzBsnxURkL
— Stephen Gordon (@stephenfgordon) January 22, 2019
1) Life always gets more expensive. It’s called inflation. We consider 2% to be a good thing.
2) Data have proven that carbon taxes have not had an adverse effect on inflation.
3) Carbon taxes do mitigate the growth of GHGs. This is proven. Saying otherwise is just lying. https://t.co/z7YW6RCd1t— Dale Smith (@journo_dale) January 22, 2019