The federal government’s social action budget and recent counterproductive changes to the assessment of natural resource projects are the latest in a host of misguided policies that will damage employment and economic growth prospects in Alberta and the entire country. In spite of how much better Justin Trudeau is regarded here compared to Donald Trump, dramatically different tax, energy and regulatory policies are putting Canada at a severe economic disadvantage to the U.S.
Delusion soothes, but reality bites.
According to the International Energy Agency, this year the U.S. will overtake Saudi Arabia and Russia in the production of oil, becoming the biggest producer in the world. This historic achievement, largely based on the shale revolution, has implications for global energy, American national security and geopolitics. It also dramatizes the gigantic Trudeau/Trump chasm in resources that will have a diametrically opposite impact on their two countries.
President Trump approved Keystone XL and the Dakota Access pipelines. His government will auction massive oil and natural gas drilling leases in the Gulf of Mexico, expand offshore drilling for oil and natural gas to most U.S. coastal waters and permit growth of the coal industry.
That will make America less dependent on imported oil and gas, reduce its trade deficit, create employment and bolster economic growth. In addition, he significantly slashed taxes and reduced the regulatory burden on business, which is ramping up private sector investment. We have done the opposite.
At the same time, GHG emissions in the U.S. declined by 758 million metric tons (Mt.) from 2005, by far the largest of any other country. That compares to a decrease in Canada of 16 Mt. and an increase in China of 3 billion tons.
Trump’s aggressive embrace of resource development starkly contrasts with the negative rhetoric and frequently hostile policy approach in Canada to its energy wealth. That’s remarkable since resources are 2.4 times larger in relation to the Canadian economy than in the U.S.
Our prime minister is hailed by liberals and an adoring media for his progressive agenda and green policies. Meanwhile, he is taxing carbon and putting regulatory roadblocks on the development of our resources and access to tidewater. While he claims to support the Trans Mountain pipeline expansion, he has yet to back his words with action.