It’s well known that if you want less of something all you need to do is tax it. The carbon tax is no exception. Since carbon is a by-product of human economic activity, a tax on carbon will lead to less economic activity.
With that in mind, it makes zero economic sense for the Trudeau government to be imposing a carbon tax at a time of stagnating economic growth.
Nowhere is that more true than in the energy industry.
With oil prices below $50 per barrel, and the US shale industry gaining market share, Canada’s oil industry is facing significant challenges.
As reported by Bloomberg, Canadian Energy Services recently cancelled a bond offering after investors expressed concern about low oil prices, and these concerns are being expressed throughout the sector.
Chris Kresic from Toronto-based Jarislowsky Fraser Ltd. told Bloomberg, “Energy bonds have lost some appeal among investors recently due to concerns about oil prices.”
That is just one of many examples of investors showing greater concern about the Canadian energy industry. Clearly, the industry needs fewer taxes, not more. The economy of Alberta, and all of Canada is at stake. As one of Canada’s core economic engines, what happens to Alberta impacts the entire country.
And yet, the Trudeau government pushes foolishly ahead, showing no sign of stopping the implementation of their economically destructive carbon tax.
The consequences of Trudeau’s anti-jobs policies will be felt immediately by consumers and businesses through higher prices. But the true damage will happen in the long-term. Competition in the oil industry is reaching unprecedented levels. OPEC is losing ground to the United States, and Canada risks being left behind if we don’t change our policies.
Worst of all, the carbon tax is a self-inflicted economic wound. All it will do is make it easier to produce energy in the US shale regions and the Middle East. It won’t lower emissions in the world. It won’t help the environment. All it will do is make Canadians poorer.
Photo – Twitter