Canada Post – Cost to send mail set to rise on January 14, 2018

As expected Canadians will have to pay for Canada Post’s Strike. Today is December 24th, 2018, it was interesting to actually see how empty the post office was today and this week for that matter near where I live. Being that I’m a business owner it’s been interesting watching how consumers are nonchalant to Canada Post, also what’s been most interesting has been the demands for alternatives, not just by small business owners but by consumers of Pot.

Mail will go up a few cents, which for people in business can add up, however, it’s not that big a deal because these shipping costs will be passed onto consumers, which only if you’re selling internationally in Canada will affect your competitiveness. The problem with Canada Posts rates is that a lot of businesses, namely e-commerce businesses in Canada can’t even get started, it’s simply not economical to start an e-commerce business here. So, in the end, as I’ve been predicting this will add to the coming economic collapse that’s arriving nearer than Canadians realize.

Even Donald Trump had to bring American troops home from Syria to save money, The U.S Federal Reserve has to raise rates, which means the cost of borrowing is going up, most of the debtors in the world are business people. I’m curious to see how much money was made this year during the Christmas season as Canada Post basically sucked the air out of the economy with their rotating strike. You can read about Canada Post’s higher fees by clicking the links below:

• Canada Post stamp prices to increase on Jan. 14 – CBC
• Canada Post says stamp prices to go up mid-January – Global News
• Canada Post to raise price of stamps to $1.05 – CTV News

These price increases for Canada Post hurt business a long time ago, it’s one of the reasons why e-commerce exports from Canada aren’t growing the way one would think, especially with a lower loonie and the United States as a trading partner plus U.S tariffs for most Canadian goods are less than what Canadians charge Americans in custom fees. The problem with Crown Corporations aren’t the good times, which is what Crown corporations are experiencing now, it’s the bad times that could be on the way.

CBC, CMHC Canada Post, and the other crown corporations will be tested in the years to come, especially if free-market changes to this economy don’t happen fast. Being that there’s nothing competitive with Canada Post, it’s basically impossible for them to really know what type of effect their price increases are having on businesses.

Most Canadian businesses switched to bulk a long time ago, a lot of small businesses in Canada avoid e-commerce, because of the Canada Post monopoly, in America, Americans often poke fun at USPS primarily because they have tons of alternatives like UPS, for example, Canada Post, on the other hand, has no competitor, UPS in Canada wants nothing to do with competing with Canada Post, no private courier wants to compete with Canada Post, why? One legislation and that private courier will be put out of business.

Think it can’t happen? Do Canadians think Verizon doesn’t want a piece of the Canadian market? Of course, U.S companies want a piece of the Canadian market that would make all of us richer, via more companies competing for our business with lower prices, however, what would happen if an American courier threatened a Canada Post with competitiveness is some legislation would get passed, making that foreign or domestic courier company less competitive.

UPS Canada, as well as other private couriers in Canada, understand, don’t challenge Crown Corporations it will cost you money, the same Union that’s in Canada Post might invade your private company, so Private companies in Canada don’t even bother, which of course leads to higher prices and fewer choices for Canadian Consumers, so I doubt anyone will even care that Canada Post raised their prices, I mean let’s be honest , what can we do about it?

All these monopolies are okay until the numbers begin to not make any sense anymore. In France, the Gas numbers, the energy costs didn’t make any sense, the people took to the streets, these types of events tend to sneak up on people in the ruling class unexpectedly. Canada isn’t there yet and it scares many of us because the productive private sectors in Canada are suffering and well, this is is a topic I’ll leave for another post.

Canada is different from the United States, we’re more socialist here, the free market components to our economy or more corporatist based. The problem with this type of economy is you lose sight of the free market so when the recession hits Canada it’s going to hit hard, I see an economic collapse that will be extremely hard to fix if the right person isn’t Prime Minister.

At the heart of it, in my opinion, will be Canada Post. The amount of wealth that could have been created in Canada if Canada Post had competitors might astound Canadians. It would even astound Canada Post workers who wouldn’t need a union to force Canada Post into paying its employees more money. That said, it is what it is. Get ready for more price inflation, via Crown Corporations. CBC is getting a bailout, the CMHC experiment has lead to higher prices and Canada Post who has no competitor raises prices because they can. The inevitable is on its way! be prepared Canada!

Interesting times ahead.