EnviroEconomics.ca

The Economist has an article on why Prime Minister Harper deserves a second mandate, but not a majority (here). Two ideas support this:

One a majority is not warranted for his stand on climate policy:

Simply to rubbish this [Dion’s carbon tax] as a “crazy” idea that would “screw everybody”, as Mr. Harper has done, shows a disappointing lack of leadership, and is grounds enough to deny the Conservatives a majority.

Two, the Prime Minister should not lose the election over his measured response to a possible recession that is most likely a non-event:

But it is his seeming non-reaction to what is so far a non-crisis that looks likely to deny him the majority he was seeking, and could even let in the opposition. In what is the first credit-crunch election in a big Western country, Mr. Harper’s ejection would set a dispiriting precedent that panic plays better politically than prudence.

Well, spreading economic panic cuts both ways, and selling the carbon tax as a recession waiting to happen makes the probability of a financial crisis induced recession all the more believable. After all, our energy costs pale in comparison to our savings, loans and investments. Indeed, my carbon exposure looks a lot more contained than my financial exposure. So, the Economist may argue that the Prime Minister is being penalized for a non-crisis, but when you tell folks a recession is possible, you better be prepared when they believe you.