Carbon Tax The real effect

Here WE GO CANADA

brad-wall

Picture Bard Wall

screen-shot-2016-11-04-at-1-26-55-pm

https://www.spreaker.com/user/ehradio/morning-minute-carbon-tax-the-real-effec

What I want to talk about is something that only one politician has talked about as far as I can see just one that’s Brad Wall of Saskatchewan

I want to explain in simple terms basic economics and how the ‘butterfly effect’ has started to ‘kick in’ in Canada

So here we go

The cost of everything in this country like any other is made up of number of basic items

  • Labour
  • materials
  • taxes

So labor is set at certain rate for that job

Tax is incurred on that job plus materials to make up the finished product

Here’s the problem

Lets say that suddenly those materials cost 10% more that means either profit margin is reduced or product will have to increase

lets say it increases just 2 or 3%

Well thats 2 or 3% you don’t have to spend not much difference you say I can live with yes

But what if overnight you cost of all your goods and services went up 10% and then another 10% and another

This just one person

So you stop going to a restaurant so much don’t buy as much food don’t go to the movies don’t buy so many new clothes etc etc

This is the butterfly effect all this has a knock on effect that goes to reduce demand resulting in the with job losses and on and on

Well that’s​ what happening with the Carbon tax ‘ A tax on your way of living’

You already know if you live in the Province of Ontario that energy prices have shot up more than doubled in some cases up to 4 times the amount of only a couple of years ago

So what does this mean for the Canadian economy

lets take a simple example not typical but it does well to explain simple economics

lets say you work in gas station and price is around 90cents a ‘liter’ and lets say the price goes up a few cents no big deal you OK figure a month, lets say it costs you

$40.00 a fill very conservative 44 ‘liters’  now a few cents cost

So now its $44.00 to fill up cost of 1 or cups of coffee but doesn’t end

So now your customer has to pay $4.00 more to fill up and guess what they’ve also had an increase for heating their house another 10% increase and their cable their cell so at the end of the month this customer that comes to your gas station regularly to fill up can no longer do that

They buy less gas fine for a while but at some point your boss has to cut back so he cuts your hours you have less to spend so you cut back

Oh you say I’ll just ask for a pay rise well we all know in real world its only the unions can do that

And if anyone is old enough to remember the final result of that is massive inflation and the final result your $ is worth less and round and round it goes

In the meantime goods and services cost more and you have less so the economy shrinks and jobs disappear

Finally by borrowing more money and spending on things that don’t generate wealth for the country the value of the dollar drops as we borrow more spend on non-essential goods and services so when we have to buy products from outside the country our buying power has diminished and those products etc will cost more

Putting it simply by artificially raising the cost of everything in a vain hope to reduce some fictitious pollution that doesn’t exist

But upshot will be a complete collapse of the Canadian economy and we will very soon start to resemble Mexico

I’ve tried to simplify but I hope you get the idea

Maybe that’s their plan but it’s not mine and we don’t have to take it. Its time to act I think!

Before it is too late

Comments

extended version

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s