Quote:
Originally Posted by Ronald Pagan
Well clearly you can't read.
Where did I say that a carbon tax would lead to a 1 to 4% drop in GDP?
Nice to see Resolute can't read either.
Fail.
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Okay, Canadian baseline growth is 2.4%. Canadian GDP is $1.27 Trillion.
Your numbers say a drop from 1 to 4%. So, that's a best case scenario of 1.4% growth (population growth rate is about 1%), and a worse case scenario is a net loss of 1.6% of GDP growth, or roughly $20.3 billion USD from the Canadian economy, or 531 937 x the per capita GDP of $38,200 USD, notwithstanding annual population growth.
The average (2.5% less the baseline) is a loss of 0.1% of GDP. That's still 1.27 billion from the Canadian economy or 33 246 x per capita GDP, again notwithstanding annual growth.
Not a pretty sight.
I've heard from some policy hacks that 1-4% less the baseline growth is initial, and with economic instability, it could get into the 1-4% below the current GDP before it gets better. But we'll stick with your numbers to avoid argument. Its still pretty brutal when you get down to it. Truth is, no one knows for sure how bad it could be, but the inflation on essential goods and services, coupled with decreased ability to compete in a hurting global marketplace, the only way economic growth could possibly go under those circumstances is down.
I'm no accountant or economist, I'm sure someone better based can illustrate it better.