Throughout history, there was always the hope of strong growth to overcome an economic crisis. But how will strong growth happen when the government is heaping taxes and regulations on everyone?
Canada’s economy is stagnating.
That would have been a true statement before the pandemic, and it’s even truer now.
Most concerningly, that stagnation is taking place from a much lower economic level, with many jobs having been lost, hundreds of thousands of businesses on the brink, and debt levels up everywhere.
Now, all of this could be overcome.
If the government brought in large tax cuts for Canadians, and reduced centralized regulations, we could see an explosion of investment, creativity, and innovation that would help us recover.
But instead, the Liberals are moving in the opposite direction.
According to reports, the Liberals are planning to introduce a net-zero emissions plan, which aims to have Canada at net-zero emissions by the year 2050.
However, there will be mandatory emissions cuts beginning in 2025 under the plan.
This comes as Canada is already dramatically missing our current targets.
Think about that for a moment:
Even after one of the largest economic contractions in history, we are still missing current targets, yet the Liberals want us to hit even tougher targets.
How does that make any sense?
There is a clear relationship between higher economic growth and higher emissions, with technological advancement being the only thing that can change that.
What that means is the government should be incentivizing Canadian innovation, rather than punishing economic success.
We now face the prospect of trying to dig out from a severe economic hole, while being held down by our own federal government, which will be piling taxes and regulations onto us at a record clip.
Rather than unleashing the potential of the Canadian People, the government will be drowning that potential.
Of course, this will also hit the provinces of Alberta and Saskatchewan the hardest, further weakening Canada’s national unity.
All in all, this is a huge mistake by the government, one that could cause consequences we all pay for for a very long time.
Photo – YouTube