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Economy

Abandoned Greenland ice base calls co2 concerns into question

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Drilling at Camp Century in 1961. Photograph: David Atwood/U.S. Army-ERDC-CRREL/AIP Emilio Segrè Visual Archives

From the Frontier Centre for Public Policy

By Brian Zinchuk, contributor to the Frontier Centre for Public Policy.

Wired.com had another story with a climate change hook on July 20 called, “An Abandoned Arctic Military Base Just Spilled a Scientific Secret.” It began “During the Cold War, the US built a network of tunnels in the Greenland ice sheet. Sixty years later, the base has provided a critical clue about the climate crisis.”

From 1959 to 1966, Project Iceworm in Greenland was meant to establish military bases in caverns carved out of glacial ice, with Camp Century being the trial run. The plan was to locate as many as 600 intercontinental ballistic missiles in under-ice caverns, invisible to the Soviets, and within striking range of the USSR.

However, the project never did work out and it was terminated in 1966.

The climate angle comes out of what was discovered in remarkable ice core the military drilled through the glacier.

The Wired article said that researchers drilled a 4,550-foot-deep core through the ice sheet, and when they hit earth, they drilled another 12 feet, bringing up a plug of frozen sand, dirty ice, cobbles, and mud.

It continued, “Nobody cared much about the sediment, though, until 2018, when it was rediscovered in … a University of Copenhagen freezer.” Now, an international team of researchers has analyzed that sediment, and made a major scientific discovery.

“In that frozen sediment are leaf fossils and little bits of bugs and twigs and mosses that tell us in the past there was a tundra ecosystem living where today there’s almost a mile of ice,” says University of Vermont geoscientist Paul Bierman, coauthor of a new paper describing the finding in the journal Science. “The ice sheet is fragile. It can disappear, and it has disappeared. Now we have a date for that.”

Wired wrote, “Previously, scientists reckoned that Greenland iced over some 2.5 million years ago, and has been that way since. In 2021, Bierman and his colleagues determined that it was actually ice-free sometime in the past million years. Now, they’ve dated the tundra ecosystem captured in the Camp Century core to a mere 416,000 years ago—so northwestern Greenland couldn’t have been locked in ice then.”

And here’s where the mental gymnastics take place: Scientists also know that at that time, global temperatures were similar or slightly warmer than what they are today. However, back then, atmospheric concentrations of planet-warming carbon dioxide were about 280 parts per million, compared to today’s 422 parts per million—a number that continues to skyrocket.”

The article continued, “Because humans have so dramatically and rapidly warmed the climate, we’re exceeding the conditions that had previously led to the wide-scale melting of Greenland’s ice sheet and gave rise to the tundra ecosystem. “It’s a forewarning,” says Utah State University geoscientist Tammy Rittenour, a coauthor of the new paper. “This can happen under much lower CO2 conditions than our current state.”

Whoa, there, Nelly! You’re telling me that carbon dioxide levels were a full third less than they are today, and yet the northernmost portions of Greenland (the most likely to freeze) was tundra? Greenland did not have the better part of a mile of ice covering it when CO2 was well below the supposedly crucial threshold of 350 parts per million?

Indeed, the article goes on to say, “That melting [of all the Greenland ice] could be incredibly perilous. The new study finds that the Greenland ice melt 400,000 years ago caused at least 5 feet of sea level rise, but perhaps as much as 20 feet. “These findings raise additional concern that we could be coming perilously close to the threshold for collapse of the Greenland ice sheet and massive additional sea level rise of a meter or more,” says University of Pennsylvania climate scientist Michael Mann, who wasn’t involved in the research. Today, less than a foot of global sea level rise is already causing serious flooding and storm surge problems for coastal cities—and that’s without the potential for an additional 20 feet.”

Again, look at the claim: carbon dioxide levels were much lower, sea levels were much higher, and the Greenland ice sheet was much smaller.

This new evidence makes reasonable people wonder if there truly is a link between carbon dioxide levels, global warming, and disappearance of ice sheets. How could so much ice be gone, melted into the ocean, with such a low CO2 level?

Surely something here doesn’t jive. And yet the world is in a tizzy over rising carbon dioxide levels.

Maybe someone should go back to Greenland, and drill a few more core samples to test this theory before we destroy our economy and our lives.

Perhaps the science of climate change isn’t settled after all.

 

Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected]. First published here.

Economy

Prime minister’s misleading capital gains video misses the point

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From the Fraser Institute

By Jake Fuss and Alex Whalen

According to a 2021 study published by the Fraser Institute, 38.4 per cent of those who paid capital gains taxes in Canada earned less than $100,000 per year, and 18.3 per cent earned less than $50,000. Yet in his video, Prime Minister Trudeau claims that his capital gains tax hike will affect only the richest “0.13 per cent of Canadians”

This week, Prime Minister Trudeau released a video about his government’s decision to increase capital gains taxes. Unfortunately, he made several misleading claims while failing to acknowledge the harmful effects this tax increase will have on a broad swath of Canadians.

Right now, individuals and businesses who sell capital assets pay taxes on 50 per cent of the gain (based on their full marginal rate). Beginning on June 25, however, the Trudeau government will increase that share to 66.7 per cent for capital gains above $250,000. People with gains above that amount will again pay their full marginal rate, but now on two-thirds of the gain.

In the video, which you can view online, the prime minister claims that this tax increase will affect only the “very richest” people in Canada and will generate significant new revenue—$20 billion, according to him—to pay for social programs. But economic research and data on capital gains taxes reveal a different picture.

For starters, it simply isn’t true that capital gains taxes only affect the wealthy. Many Canadians who incur capital gains taxes, such as small business owners, may only do so once in their lifetimes.

For example, a plumber who makes $90,000 annually may choose to sell his business for $500,000 at retirement. In that year, the plumber’s income is exaggerated because it includes the capital gain rather than only his normal income. In fact, according to a 2021 study published by the Fraser Institute, 38.4 per cent of those who paid capital gains taxes in Canada earned less than $100,000 per year, and 18.3 per cent earned less than $50,000. Yet in his video, Prime Minister Trudeau claims that his capital gains tax hike will affect only the richest “0.13 per cent of Canadians” with an “average income of $1.4 million a year.”

But this is a misleading statement. Why? Because it creates a distorted view of who will pay these capital gains taxes. Many Canadians with modest annual incomes own businesses, second homes or stocks and could end up paying these higher taxes following a onetime sale where the appreciation of their asset equals at least $250,000.

Moreover, economic research finds that capital taxes remain among the most economically damaging forms of taxation precisely because they reduce the incentive to innovate and invest. By increasing them the government will deter investment in Canada and chase away capital at a time when we badly need it. Business investment, which is crucial to boost living standards and incomes for Canadians, is collapsing in Canada. This tax hike will make a bad economic situation worse.

Finally, as noted, in the video the prime minister claims that this tax increase will generate “almost $20 billion in new revenue.” But investors do not incur capital gains taxes until they sell an asset and realize a gain. A higher capital gains tax rate gives them an incentive to hold onto their investments, perhaps until the rate is reduced after a change in government. According to economists, this “lock-in” effect can stifle economic activity. The Trudeau government likely bases its “$20 billion” number on an assumption that investors will sell their assets sooner rather than later—perhaps before June 25, to take advantage of the old inclusion rate before it disappears (although because the government has not revealed exactly how the new rate will apply that seems less likely). Of course, if revenue from the tax hike does turn out to be less than anticipated, the government will incur larger budget deficits than planned and plunge us further into debt.

Contrary to Prime Minister Trudeau’s claims, raising capital gains taxes will not improve fairness. It’s bad for investment, the economy and the living standards of Canadians.

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Economy

Canadians experiencing second-longest and third steepest decline in living standards in last 40 years

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From the Fraser Institute

From 2019 to 2023, Canadian living standards declined—and as of the end of 2023, the decline had not yet ended, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Despite claims to the contrary, living standards are declining in Canada,” said Grady Munro, policy analyst at the Fraser Institute and co-author of Changes in Per-Person GDP (Income): 1985 to 2023.

Specifically, from April 2019 to the end of 2023, inflation-adjusted per-person GDP, a broad measure of living standards, declined from $59,905 to $58,111 or by 3.0 per cent. This decline is exceeded only by the decline in 1989 to 1992 (-5.3 per cent) and 2008 to 2009 (-5.2 per cent). In other words, it’s the third-steepest decline in 40 years.

Moreover, the latest decline (which comprises 18 fiscal quarters) is already the second-longest in the last 40 years, surpassed only by the decline from 1989 to 1994 (which lasted 21 quarters). And if not stabilized in 2024, this decline could be the steepest and longest in four decades.

“The severity of the decline in living standards should be a wake-up call for policymakers across Canada to immediately enact fundamental policy reforms to help spur economic growth and productivity,” said Jason Clemens, study co-author and executive vice-president at the Fraser Institute.

  • Real GDP per person is a broad measure of incomes (and consequently living standards). This paper analyzes changes in quarterly per-person GDP, adjusted for inflation from 1985 through to the end of 2023, the most recent data available at the time of writing.
  • The study assesses the length (number of quarters) as well the percentage decline and the length of time required to recover the income lost during the decline.
  • Over the period covered (1985 to 2023), Canada experienced nine periods of decline and recovery in real GDP per person.
  • Of those nine periods, three (Q2 1989 to Q3 1994, Q3 2008 to Q4 2011, and Q2 2019 to Q2 2022) were most severe when comparing the length and depth of the declines along with number of quarters required for real GDP per person to recover.
  • The experience following Q2 2019 is unlike any decline and recovery since 1985 because, though per person GDP recovered for one quarter in Q2 2022, it immediately began declining again and by Q4 2023 remains below the level in Q2 2019.
  • This lack of meaningful recovery suggests that since mid-2019, Canada has experienced one of the longest and deepest declines in real GDP per person since 1985, exceeded only by the decline and recovery from Q2 1989 to Q3 1994.
  • If per-capita GDP does not recover in 2024, this period may be the longest and largest decline in per-person GDP over the last four decades.

Adobe PDF Read the Full Report

 

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