So everything would go up, but then people would have more money. Or are you suggesting that the extra money gets burnt in a furnace?
Have the carbon tax go to the people. Easy solution. Prices go up, people get more money.
Have the carbon tax go to the people. Easy solution. Prices go up, people get more money.
Uh,it doesn’t work that way. If it did, Zimbabwe would rule the planet with their hyperinflation that your line of thinking created for them.
The missing piece - the money has to come from SOMEWHERE. Look in your wallet - where is that going to come from? I know in my wallet, I’m going to have to cut back on something - probably eating out. So now the restaurants near my house are going to have less business. Some of them will probably cut back on the hours of the waiters, or even let them go. Unemployment goes up. Etc.
These things have to be done over longer time horizons. People do not adapt well to dramatic short-term changes. If they did, then 2008 would have been just another year, instead of tagged with “global financial crisis”.