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Beer ads and tax policy.


Beer ads try to connect with your lizard brain. They sneak signals past the prefrontal cortex Noun 1. prefrontal cortex - the anterior part of the frontal lobe
prefrontal lobe

cerebral cortex, cerebral mantle, cortex, pallium - the layer of unmyelinated neurons (the grey matter) forming the cortex of the cerebrum
 to the places that deal with food, fear and sex. It's sneaky, but it works. A TV ad with quick movement, flashes of blood red, and bits of skin can send a lot of guys to the fridge for a beer.

[ILLUSTRATION OMITTED]

The federal campaigns are aimed at the lizard brain, too. Not that any of the party leaders are using sex appeal, but they are staging mock battles that seem to be designed to bypass the higher brain functions of the electorate. Or maybe it isn't aimed at the electorate. Racing back and forth across the country and making threatening noises seems to go directly to the lizard brain of reporters, and the reporters seem to be responding to the election the way couch potatoes respond to beer ads.

The lizard brain isn't very good at sorting out party platforms and neither are the reporters. Tax policy is especially hard for the lizard brains to figure out.

Tax policy has to be processed in a part of the brain that lizards don't even have. Even the other monkeys; chimpanzees, apes, orangutans and baboons don't have enough gray matter up front to get their minds around carbon taxes, tariffs and the GST GST
abbr.
Greenwich sidereal time


GST (in Australia, New Zealand, and Canada) Goods and Services Tax
. In fact, it is pretty hard for the university students I teach.

How is a taxpayer supposed to understand the issues when the message is filtered though reporters who probably pay someone to fill in their income tax form?

Worse yet, the messages may be garbled to start with. It doesn't look to me as though many of our politicians can understand the tax system either.

Even Stephane Dion, with his PhD, has a hard time explaining his carbon tax proposal to members of his own party.

In theory, they are at least willing to consider party policy. A politician opposed to changing the tax system doesn't have to explain taxes.

All he has to do is confuse people enough to keep them from understanding the policies proposed by the other parties.

So when Harper says the carbon tax will destroy the economy, he is not aiming at the prefrontal cortex.

He is trying to slip a scary signal through to the lizard brain. It is a trick that worked on the reporters at the Globe and Mail. The Globe made Harper's claim the frontpage headline.

Buried in the back of the Globe was a response from Nancy Olewiler, one of Canada's leading environmental economists. Olewiler is director of the Public Policy Program at Simon Fraser University Simon Fraser University, main campus at Burnaby, British Columbia, Canada; provincially supported; coeducational; chartered 1963, opened 1965. The Harbour Centre campus in downtown Vancouver opened in 1989. . She literally wrote the textbook on environmental policy. She was editor of Canadian Public Policy Canadian Public Policy is Canada's leading journal examining economic and social policy. The aim of the journal is to stimulate research and discussion of public policy problems in Canada. , the most respected policy journal in Canada.

She served on the federal Finance Minister's Technical Committee on Business Taxation. She is a director of B.C. Hydro.

Nancy Olewiler said Harper was wrong. Who do you believe?

Olewiler isn't the only highly qualified dissenter. Mark Jaccard Dr. Mark Jaccard is a professor in the School of Resource and Environmental Management (REM) at Simon Fraser University, Vancouver, Canada. He is an internationally respected authority on climate change. , the economist who did the studies Harper seems to be using says Harper is wrong.

So does Gilber E. Metcalf, who wrote "A Green Employment Swap: Using a Carbon Tax to Finance Payroll Relief" for the prestigious Brookings Institute in the USA. So does Harvard economics textbook writer Greg Mankiw, a former Chair of the Council of Economic Advisors under President George W. Bush. And so do New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 Times columnists David Brooks David Brooks is the name of:
  • David Brooks (journalist) (born 1961), commentator for The New York Times and other publications
  • David Brooks (politician) (1756–1838), United States representative in the Fifth United States Congress
 and Paul Krugman Paul Robin Krugman (born February 28, 1953) is an American economist. Krugman, a liberal, is currently a professor of economics and international affairs at Princeton University. . Krugman is also a prominent economist like carbon tax supporters Thomas Friedman Thomas Lauren Friedman, OBE (born July 20, 1953), is an American journalist. He is an op-ed contributor to The New York Times, whose column appears twice weekly and mainly addresses topics on foreign affairs. , Martin Feldstein Martin Stuart "Marty" Feldstein (born November 25, 1939 in New York City) is an American economist. He is currently the George F. Baker Professor of Economics at Harvard University, and the president and CEO of the National Bureau of Economic Research (NBER).  and Nobel Prize Nobel Prize, award given for outstanding achievement in physics, chemistry, physiology or medicine, peace, or literature. The awards were established by the will of Alfred Nobel, who left a fund to provide annual prizes in the five areas listed above.  winner, Joe Stiglitz.

The point is that the carbon tax is good economics and has already been adopted by parties representing over 40 per cent of Canadian voters. The man who is trying to sell himself as a good economic manager is actually an economic dinosaur.

What should be front-page news is that Harper is either lying for political reasons or he doesn't understand how the economy works.

I am not sure which prospect scares me most.

Whichever it is, the national press has missed the real story. Meanwhile the future of Canada could be decided by our good old lizard brains.

Dave Robinson is an economist with the Institute for Northern Ontario Research at Laurentian University.

drobinson@laurentian.ca
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Title Annotation:ECONOMICALLY SPEAKING
Author:Robinson, Dave
Publication:Northern Ontario Business
Date:Oct 1, 2008
Words:710
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