Bill Scarth is a highly respected mainstream Canadian economist at McMaster University. In a piece just published by the C.D. Howe Institute, a generally conservative think-tank, he argues that the pace of federal deficit reduction should be slowed in order to lower unemployment.
His key point is that the economy still has a lot of slack which will not be quickly closed just by maintaining interest rates at their currently very low levels.
This morning La Presse published a stunning statement by Natural Resources Minister Joe Oliver. He stated “I think that people aren’t as worried as they were before about 2° C of warming” (my translation).
Really? To recap, 2° C is the absolute upper limit that climate scientists suggest the world can reach before we introduce the danger of runaway climate change because of feedback effects such as the releases of natural carbon sinks. If we go beyond 2° C we might not be able to turn climate change around.