Tuesday, May 3, 2011

The Canadian Economy will soon suffer from Harper's out-of-touch energy policies

Stephen Harper claims to be "business friendly" - his critics might even call him "corporation friendly". This is generally observed in terms of his government's plans to reduce corporate taxes while burdening consumers with unpopular HST programs and decreasing public services like health care because there isn't enough money to fund them. Harper justifies this by saying that these corporation friendly actions are needed to insure that companies will invest in Canada and create jobs which will grow the economy.

However, it is important to note that a Harper government isn't friendly to corporations that seek to develop important new economic sectors. Even when these companies would provide many quality jobs and even reduce our economic dependence on declining (and increasingly expensive) supplies of fossil fuel.

When it comes to carbon taxes or cap and trade systems to benefit the environment, the Harper conservatives claim these measures would ruin the economy and threaten countless jobs. Economic analysis shows that this economic slow-down is caused because the carbon management systems simulate high oil prices - and this causes the economy to shift away from fossil fuel usage. Fortunately, government raises money with these systems that is typically used to fund alternative energy systems, public transit etc. This new industry and transportation development creates new jobs that ultimately grow the economy. For a good example of this, just look at Denmark.

Harper's extreme loyalty and complete allegiance to the oil and gas industry leaves Canada completely vulnerable to high oil prices - which are inevitable as oil production slows on a global level. Lagging behind the rest of the world on renewable energy and environmental protection will ultimately handicap Canada's economy far more than any carbon management regulations.

Green energy sector not cheering Tory majority - The Globe and Mail

Their man has a majority; now oil patch wants elbow room - The Globe and Mail

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