COVID-19 has driven governments into debt traps

Printing money to address short-term needs will lead to inflation and dampen any potential economic recovery

COVID-19 has driven governments into debt trapsThe financial consequences of COVID-19 and the shutdown of economies are difficult to evaluate. But some of those consequences have begun to appear and could hinder economic recovery. Inflation is one of these harmful consequences. In the United States, consumer prices jumped 4.2 per cent in the 12 months through to April, up from 2.6…

Climate simulation models are not reality, nor are they science

Climate simulation models are no more real than your favourite video game

Climate simulation models are not reality, nor are they scienceIn a recent article about climate change, Associated Press science writer Seth Borenstein gave us a master class on how to sell the results of a computer model as if it represents reality. In his world, a group of scientists can take a short-term heat wave, crank it through an “ensemble” of theoretical mathematical climate…

Why bailing out Air Canada is counterproductive

Rather than subsist on government aid, Air Canada should urge officials to ease travel restrictions

Why bailing out Air Canada is counterproductiveA year and a half into the COVID-19 pandemic, the only thing keeping Air Canada alive is the federal government bailouts. They’re delaying the inevitable and sensible way out: cutting travel restrictions, encouraging tourism by ensuring effective containment and encouraging vaccination. In April, the government granted the firm another $5.9-billion loan to keep it afloat…

Is China turning its back on science and progress?

Totalitarian societies such as China require conformity and loyalty, not independence of thought

Is China turning its back on science and progress?One of the most notable features of Nazi Germany was its anti-intellectualism. While it claimed to be at the forefront of scientific and technical advances, its ideology and totalitarian rule made free enquiry and interchange between scientists and other technical people untenable. Researchers became wary of making bold assertions, even when backed by solid evidence…

The economic dangers of a new inflationary era

Interest rates will rise dramatically to compensate financial institutions with effects lasting for years

The economic dangers of a new inflationary eraIt’s not entirely clear whether the Canadian and the global economies are heading for a new inflationary era. It may turn out that inflation is not only elevated from recent negligible levels, but escalates, steadily at first, and then dramatically, as it did in the 1960s until the early 1980s. If it does, the havoc…

Why Canada’s latest deal with the U.S. creates trade barriers

Canada must be aware that protectionism has returned which makes international trade complicated

Why Canada’s latest deal with the U.S. creates trade barriersCanada faces new pressures on any attempts to ramp up international trade. In 1994, the United States, Mexico and Canada created a free-trade region with the North American Free Trade Agreement (NAFTA). Considering that the U.S. has been the largest economy in the world from 1994 to now, NAFTA was a true asset for the…

Wealth taxes ultimately cripple economic growth

The rich put their earnings into new ideas, venture capital funds and angel investments

Wealth taxes ultimately cripple economic growthThere has been increasing clamour from some circles to impose a wealth tax upon Canadians. The usual government-expanding social ‘democratic’ pressure and interest groups are especially enthused by the idea. They also claim it’s popular among the public. A one-time tax of three per cent on individuals with wealth above $10 million and five per cent…

Higher mortgage hurdles beat up on working class

The Trudeau government is papering over its policy failures by rationing housing to the working class

Higher mortgage hurdles beat up on working classThere’s no mystery as to why Canada has seen a record-setting housing spike in the past year: negative real interest rates and monetary debasement from federal deficits. Rather than considering fiscal austerity and getting inflation under control, the federal government has opted to ration home buying and exclude those on the margins. Officials have raised,…

How the free market is driving an energy evolution

Things are changing faster, and for the better, than radical environmentalists recognize or acknowledge

How the free market is driving an energy evolutionA recent Globe and Mail story about a firm developing garbage-to-biodiesel technology shows how continuing progress makes the global warming extremists’ most hysterically apocalyptic predictions, and their extreme absolutist ‘solutions,’ not only grossly wrong but already likely obsolete. In the case of the company profiled, Cielo Waste Solutions Corp. is able to transform not just…

How the Western world failed in the face of the COVID-19 crisis

Bureaucracy was a significant obstacle to effective action

How the Western world failed in the face of the COVID-19 crisisThe COVID-19 pandemic has taken countries, governments and people by surprise. Most of us weren’t prepared to face this crisis. Most Western countries initially refused to panic and wanted to manage the situation like other illnesses such as the flu. But the outbreaks in hospitals and other medical facilities in most countries led to true…
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