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Economy

Should climate change action cost the economy? Canadians unsure, poll says – Global News

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Following a summer of record-setting heatwaves and devastating forest fires, it has become clear to Canadians that something needs to be done about climate change. But new Ipsos polling suggests they are divided on whether fixing climate change should come at the cost of the country’s economy.

The Ipsos poll, conducted exclusively for Global News, also found that the issue of climate change had become a primary issue during this year’s election, ranking top five among respondents.

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“The underlying current of the data here is that a lot of people like to treat the environment and the economy as a zero sum game, as mutually exclusive. But it seems to me that Canadians refuse to believe that’s the case,” said Ipsos Vice President Sean Simpson.

“They believe that we can, in fact, move towards greener policies, move towards actions that help stem climate change while at the same time growing the economy in a responsible manner.”

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Canada election: Complete list of promises about tackling climate change


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What can Canadians do to avert climate crisis?


What can Canadians do to avert climate crisis? – Aug 11, 2021

Data from the poll, which interviewed 1,500 Canadians online over the weekend, found that 77 per cent of those surveyed said the country needs to do more to reverse its effects, but 51 per cent said the federal government needs to “balance economic considerations with environmental efforts.”

Meanwhile, 35 per cent of respondents said they believed Canada should do everything in its power to fight climate change, and 13 per cent said they felt “no urgency” to correct it if the country’s economy has to suffer. That said, 58 per cent agreed combatting climate change would require solutions that would negatively impact the economy.

Roughly 75 per cent of Canadians surveyed, regardless of party affiliation, said they could get on board with a carbon tax “if they knew the money collected was going directly to initiatives to combat climate change.”

Conservatives were most likely to say that Canada needed to find a balance between the economy and the environment at 67 per cent, the poll found, in contrast to the 48 per cent those who identified as Liberal voters and 42 per cent who said they would vote NDP.


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Canada Election: Singh blasts Trudeau’s record on climate change at same site where Trudeau joined 2019 climate protest


Canada Election: Singh blasts Trudeau’s record on climate change at same site where Trudeau joined 2019 climate protest

Similarly, Conservative voters were also more likely to say that it wasn’t worth destabilizing the economy over at 19 per cent, versus three per cent of Liberals and seven per cent of NDP voters surveyed. Meanwhile, Green Party voters were the most likely to to “favour combating climate change, even if the economy slows” at 60 per cent, while 51 per cent of NDP voters, 47 per cent of Liberal voters and 14 per cent of Conservative voters agreed.

Simpson noted there was no generational divide on these beliefs.

“Age is no longer the primary determinant of whether you’re green (not the party), but in your in your attitudes and beliefs,” he said.

“What that suggests is that there is an emerging consensus in Canada that it’s important to take action to help stop our impact on on climate change.”

Read more:
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That growing consensus could be attributed to the country’s spate of extreme weather.

Eighty-four per cent of Canadians surveyed agreed the “extended heat warnings, drought and wildfires” this year were more cause for alarm than they were five years ago while 77 per cent said it made them more concerned about climate change.

This could also be because more Canadians are being impacted by climate change this year. Sixty-six per cent of Canadians surveyed said they were directly affected by extreme weather this year, and 81 per cent said they felt like their government should provide those who have been directly impacted with more support.

The sentiment was felt highest among respondents in British Columbia, who dealt with record-breaking heat waves and poor air quality throughout much of the summer. The province was followed closely by respondents who live in Quebec and are facing high temperatures and scorching conditions not seen since the year 1916.

“You look out the window, you walk outside, you’re seeing funny sun because you know there’s smoke in the air,” Simpson said. “That creates a sense of urgency.”


Click to play video: 'The Impact of Climate Change on Atlantic Canada'



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The Impact of Climate Change on Atlantic Canada


The Impact of Climate Change on Atlantic Canada – Aug 11, 2021

Those surveyed in Ontario and Alberta were least likely to agree that it was more of a concern that it was five years ago, that it made them more concerned about climate change or that climate change directly impacted them.

“Alberta is always the least likely to to say that climate change is urgent. It’s not that they don’t believe it. It just means that maybe those economic considerations are a little bit more important for for Albertans,” Simpson said.

He added that Ontario was one of the hardest hit provinces throughout the COVID-19 pandemic, which could shift their priorities.

“The economy may be more top of mind for Ontarians than it is elsewhere,” Simpson noted.

Read more:
Climate change a likely ballot issue for Manitobans this federal election: pollster

He added that the conversation about climate change has shifted since the last election.

Only 27 per cent of Canadians surveyed agreed that climate change activists are “overreacting.” This is down five points from 2019. In contrast, there is a growing number of Canadians who believe that Canada contributes little to the world’s pollution at 34 per cent, up seven points from 2019.

While Canadians have made it clear that climate change needs to be addressed, there is also a growing number that believe it may be too late to reverse its effects.

Forty-nine per cent of Canadians surveyed — up eight points from 2019 — said they believed there was no way to “significantly reduce carbon emissions” within the next ten years, no matter how hard anyone tried.


Click to play video: 'B.C. wildfire smoke socks in Alberta again; Calgary with second-smokiest summer on record'



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B.C. wildfire smoke socks in Alberta again; Calgary with second-smokiest summer on record


B.C. wildfire smoke socks in Alberta again; Calgary with second-smokiest summer on record – Aug 16, 2021

According to the poll, 74 per cent of Canadians surveyed agreed that “Canada has an obligation to lead on climate change globally.” This was highest among Bloc Quebecois and Liberal voters, and true for most respondents, regardless of party affiliate — with the exception of those who said they would vote People’s Party of Canada.

“In a sense, the People’s Party is is a hodge-podge of maybe contrarians, maybe climate change deniers,” Simpson said.

“But, of course, they only represent about two per cent of the population at this point in time, so I don’t think they’ll have a big impact on the outcome of the election.”

A sample of n = 1,500 was interviewed online, via the Ipsos I-Say panel and non-panel sources, and respondents earn a nominal incentive for their participation. Quotas and weighting were employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos polls which include non-probability sampling is measured using a credibility interval. In this case, the poll is accurate to within ± 2.9 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

© 2021 Global News, a division of Corus Entertainment Inc.

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Economy

Biden's Hot Economy Stokes Currency Fears for the Rest of World – Bloomberg

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As Joe Biden this week hailed America’s booming economy as the strongest in the world during a reelection campaign tour of battleground-state Pennsylvania, global finance chiefs convening in Washington had a different message: cool it.

The push-back from central bank governors and finance ministers gathering for the International Monetary Fund-World Bank spring meetings highlight how the sting from a surging US economy — manifested through high interest rates and a strong dollar — is ricocheting around the world by forcing other currencies lower and complicating plans to bring down borrowing costs.

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Economy

Opinion: Higher capital gains taxes won't work as claimed, but will harm the economy – The Globe and Mail

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Open this photo in gallery:

Canada’s Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland hold the 2024-25 budget, on Parliament Hill in Ottawa, on April 16.Patrick Doyle/Reuters

Alex Whalen and Jake Fuss are analysts at the Fraser Institute.

Amid a federal budget riddled with red ink and tax hikes, the Trudeau government has increased capital gains taxes. The move will be disastrous for Canada’s growth prospects and its already-lagging investment climate, and to make matters worse, research suggests it won’t work as planned.

Currently, individuals and businesses who sell a capital asset in Canada incur capital gains taxes at a 50-per-cent inclusion rate, which means that 50 per cent of the gain in the asset’s value is subject to taxation at the individual or business’s marginal tax rate. The Trudeau government is raising this inclusion rate to 66.6 per cent for all businesses, trusts and individuals with capital gains over $250,000.

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The problems with hiking capital gains taxes are numerous.

First, capital gains are taxed on a “realization” basis, which means the investor does not incur capital gains taxes until the asset is sold. According to empirical evidence, this creates a “lock-in” effect where investors have an incentive to keep their capital invested in a particular asset when they might otherwise sell.

For example, investors may delay selling capital assets because they anticipate a change in government and a reversal back to the previous inclusion rate. This means the Trudeau government is likely overestimating the potential revenue gains from its capital gains tax hike, given that individual investors will adjust the timing of their asset sales in response to the tax hike.

Second, the lock-in effect creates a drag on economic growth as it incentivizes investors to hold off selling their assets when they otherwise might, preventing capital from being deployed to its most productive use and therefore reducing growth.

Budget’s capital gains tax changes divide the small business community

And Canada’s growth prospects and investment climate have both been in decline. Canada currently faces the lowest growth prospects among all OECD countries in terms of GDP per person. Further, between 2014 and 2021, business investment (adjusted for inflation) in Canada declined by $43.7-billion. Hiking taxes on capital will make both pressing issues worse.

Contrary to the government’s framing – that this move only affects the wealthy – lagging business investment and slow growth affect all Canadians through lower incomes and living standards. Capital taxes are among the most economically damaging forms of taxation precisely because they reduce the incentive to innovate and invest. And while taxes on capital gains do raise revenue, the economic costs exceed the amount of tax collected.

Previous governments in Canada understood these facts. In the 2000 federal budget, then-finance minister Paul Martin said a “key factor contributing to the difficulty of raising capital by new startups is the fact that individuals who sell existing investments and reinvest in others must pay tax on any realized capital gains,” an explicit acknowledgment of the lock-in effect and costs of capital gains taxes. Further, that Liberal government reduced the capital gains inclusion rate, acknowledging the importance of a strong investment climate.

At a time when Canada badly needs to improve the incentives to invest, the Trudeau government’s 2024 budget has introduced a damaging tax hike. In delivering the budget, Finance Minister Chrystia Freeland said “Canada, a growing country, needs to make investments in our country and in Canadians right now.” Individuals and businesses across the country likely agree on the importance of investment. Hiking capital gains taxes will achieve the exact opposite effect.

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Economy

Nigeria's Economy, Once Africa's Biggest, Slips to Fourth Place – Bloomberg

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Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year and Egypt, which held the top position in 2023, is projected to fall to second behind South Africa after a series of currency devaluations, International Monetary Fund forecasts show.

The IMF’s World Economic Outlook estimates Nigeria’s gross domestic product at $253 billion based on current prices this year, lagging energy-rich Algeria at $267 billion, Egypt at $348 billion and South Africa at $373 billion.

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