how I learned to love soaring energy prices

It is an inviolable rule of nature that, when in a pinch, the Canadian public will always advocate the worst possible economic policy at the worst possible moment. The loonie is plunging and near record lows — people want the U.S. dollar. The U.S. is charging tariffs on our softwood lumber and won’t abide by trade panel rulings — let’s tear up NAFTA. And now that the price of gas has spiked above $1.30 a litre — it must be time for price controls.
Last week the Canadian Federation of Independent Business (CFIB) sent a letter to the Prime Minister complaining that “soaring energy prices are having a major negative impact on the Canadian economy,” and demanding intervention to “alleviate” high fuel costs. Commuters in Ontario and Quebec are already hyperventilating over the cost of gas, truckers in New Brunswick are blocking traffic in protest, and consumer confidence is slipping fast. This week, oil executives will be in Ottawa to face a grilling from MPs worried that “petro-rage” may be undermining their re-election hopes.

It looks like things are only going to get worse. CIBC chief economist Jeffrey Rubin predicts oil prices will hit US$100 a barrel by the end of 2007. Right on cue, Canada’s undying love affair with bad economic ideas has resurfaced. A L