When Ontario Premier Doug Ford claimed the federal government’s carbon tax would cause a recession in Ontario, many economists disagreed. And it seems most regular people do as well.
According to the first in a series of Clean Energy Canada / Abacus Data nationwide polls:
- Few Canadians (19%) expect a recession next year. If there were to be one, most (63%) say it would likely have more to do with global economic trends than domestic policies.
- When told Premier Ford warned the federal carbon tax would cause a recession in Ontario, almost two out of three across the country (64%), and in Ontario (63%), disagreed, believing he was overstating the impact.
- When respondents were presented with a question which noted that many economists had offered a contrary view, namely that the impact of the tax would be too small to cause a recession, even more people (73% in Ontario, 74% across Canada) rejected Mr. Ford’s contention.
Latest Bank of Canada statement on major risks to the economy in 2019 doesn’t mention carbon tax
In a speech to the Economic Club of Canada, Ontario Premier Doug Ford warned of a ‘very, very real’ risk that the federal government’s carbon tax will trigger a recession. (Radio-Canada)
“A carbon tax will be a total economic disaster,” Ford told the estimated 1,000 paying guests at the lunchtime event in downtown Toronto on Monday.
Asked by CBC News for clarification, Ford’s press secretary pointed to a study by the Conference Board of Canada that suggests a federally imposed carbon tax would shrink the nation’s economy by $3 billion. While that sounds like a big number, it is only a fraction of a per cent of the country’s $2.1 trillion GDP.
“Our analysis suggests the economy will shrink marginally in response to the carbon tax,” the authors said. “While the overall economic impact is small, the distribution is not equal across sectors, with some industries bearing notable costs.” The report does not say that the carbon tax will cause a recession. Nor do other economists. MORE