Economic Issues
Intro to Economic Issues
Canada has over-invested in the oil industry. In the past 12 years, 120 billion dollars has been invested in the Canadian tar sands, which are 71% foreign owned. The consequences of such investments are turning the Canadian dollar into a petro currency, and putting Canada at a great risk of economic collapse. |
Petro Currency
The amount of money put into the tar sands has transformed the Canadian dollar into a petro currency. A petro currency is when the value of currencies rise and drop in value as the price of oil rises and falls. The Canadian dollar increase in value has made manufacturing goods more money. At least 166, 500 manufacturing jobs were lost in the past decade because of the rising petrodollar. |
Carbon Pricing
In Australia, if any project releases over 25, 000 tonnes per year of CO² greenhouse gases, they need to pay approximately $25 for every extra tonne emitted. The tar sands release approximately 1.1 gigatons (billion tonnes) yearly. A global price on carbon will be established eventually, making the tar sands unaffordable. Canada's economic future relies on the oil sands. Therefore Canada is at a great risk of economic collapse. |