As proof that no good policy goes unpunished by politicians in pursuit of their own legacy, however flawed, consider the Alberta government's attack on Christmas cheer and previous sensible policy – call it "Grinch economics" – the province's recent 525-per-cent tax hike on out-of-province craft beer.

The New Democratic Party government under Premier Rachel Notley has already made a number of missteps in its short time in office. They include higher business taxes, non-neutral carbon taxes and an almost-50-per-cent hike in the minimum wage over three years, this when inflation over that period is likely to be 5 per cent.

All of this has been imposed just as Alberta businesses are suffering from reduced cash flows, so provincial government policies will exacerbate private-sector job losses under way because of the drop in oil and natural-gas prices.

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But the Alberta government's decision to dramatically hike the tax on out-of-province craft beer, a measure contained in its late October budget, but which lately made headlines as several craft brewers announced a cessation of beer exports to Alberta, is probably the first time an Alberta government has enacted a tax measure that will negatively affect small businesses elsewhere in Canada.

Before Alberta's October budget, all craft breweries (those producing less than 20,000 hecto-litres of beer) were taxed at 20 cents a litre, regardless of their location. Post-budget, out-of-province breweries were hit with a beer tax of $1.25 per litre, or a 525-per-cent tax hike on their beer.

That $1.25 tax increase averages out to a $3 increase per out-of-province six pack of craft beer.

That price proliferation on out-of-province six-packs makes them far less likely to sell relative to in-Alberta produced craft beer – exactly the aim of the provincial government. "The markup structure is being refined to promote made-in-Alberta products" is how the NDP government explained the tax increase in its October budget.

This is old-fashioned beggar-thy-neighbour protectionism. It is out of place in a country founded, in part, on pre-Confederation desires to knock down trade barriers in pursuit of free trade where all could compete and potentially prosper. It is also counter-productive economic policy.

But protectionism often rears its horrid head courtesy of provincial – in the worst sense of that word – politicians. They too often cater to a few corporations in their own jurisdiction at the expense of companies elsewhere and also at the expense of at-home consumers. Discouraging competition from outside one's province can lead to a loss of sales for companies elsewhere in Canada, craft brewers in this example, which can also lead to job losses.

Ontario-based Muskoka Brewery already announced it won't sell any more beer in Alberta. Other craft beers have also been pulled from Alberta liquor-store shelves, including ones from Montreal-based Dieu du Ciel. That craft brewery apologized to its loyal Alberta customers, commenting that Alberta was once a "model" but has now joined other provinces in being "ridiculous." Dieu du Ciel pointed out that it is easier to export its craft beers to the United States and Europe than to other Canadian provinces.

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Over all, the problem with protectionism, practised anywhere, is that less competition leads to higher consumer prices and then fewer overall jobs. This is easy to grasp when one understands the countrywide or worldwide effect beyond some local provincial protectorate. That serves as a drag on overall economic growth with subsequent negative effects on employment. It is why protectionism is always and everywhere a poor policy.

The Alberta government, accidentally or on purpose, is making Alberta more expensive just as business cash flow is plummeting. It is thus practising Grinch economics with plenty of negative in-province results. With a 525-per-cent increase in taxes on craft beer from other provinces, Alberta's provincial government is extending the effect of such negative policies to the rest of Canada.

Mark Milke is a Calgary author and columnist and author of a past study on Alberta's 1990s liquor-store privatization policy.