A misguided policy

The Canadian Government has used a number of catch phrases to legitimize its support of fossil fuels.  The Government described its environmental monitoring and regulation of the tar sands as “world-class”, also referring to Canada in this context as “a world leader”.  Although the international community recognized these words as meaningless hype, many Canadians were re-assured that environmental risks were under control.

The value of Canadian dollar, also known as our petrodollar, soared.  Most Canadians considered that this development validated the goal of Canada as “an energy super-power”.

The Canadian Government countered criticism that an inflated dollar was detrimental to Canada’s manufacturing base. Supported by the Alberta Government and the fossil fuel industry, it emphasized that the exploitation of the tar sands resulted in substantial purchases of goods and services from suppliers in other Provinces.

Read moreA misguided policy

“Dutch Disease” or Canadian Politics?

There has been a lot of commentary in the print media about Thomas Mulcair’s remarks on the connection between “Dutch Disease” and the tar sands.  Mulcair claims that the vast exports of fossil fuels have led to a high Canadian dollar.  In turn, a high dollar hurts the competitiveness of Canadian manufactured goods in foreign … Read more

A Canadian history lesson!

In 1993 Canadian Prime Minister Kim Campbell called an election, running on a platform of new leadership and deficit reduction. She honestly but incautiously admitted that she did not foresee any fall in Canada’s unemployment rate for 4 years. Sensing an opportunity, the Liberal Leader, Jean Chretien, immediately adopted the campaign slogan of “Jobs! Jobs!  … Read more

Resource Curse or Dutch Disease aka “Petrodollars”

 Many discussions of the impact of oil discovery and exploitation focus on the Dutch Disease. Simply put, the economic benefits of a large oil discovery may be muted by the repercussions that can impact an economy. For example, the production of oil may attract domestic resources, such as finance and labour, with a consequent negative … Read more

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