Canada’s very expensive enhanced feed ban regulations may cause a meat shortage in Canada – May 7, 2020,
The problem with regulations is that regulations and price controls are actually the root causes of the great depression. Although most people tend to prefer blaming central banks for the destruction of society, the reality is there is constantly a push in a democratic society by the people to expand the money supply and although many will argue that it’s Central banks fault for allowing this to happen, the reality is that the problem starts with regulations.
The meat of the article I point to in this blog post talks about the root cause of why Three meat-packing plants turn out 85% of Canada’s beef and How it happened? Well turns out that it happened because of regulation that was derived from other Government enforced regulations.
One of the best inventions I thought humans came up with was labeling. As a business owner, I have labeling machines they’re not that expensive, and quite frankly in my opinion warning labels could do a lot.
Now in the article below, it talks about the spread of Bovine Spongiform Encephalopathy (BSE), better known as mad cow disease, and basically how a regulation, regulated productive small farmers out of business. I hear out all the time that Canadian farmers can’t compete with U.S farmers, what’s often ignore is WHY they can’t compete with U.S farmers, Canada via federal regulations has a one size fits all approach regulations.
This one size fits all approach is very expensive, similar to a minimum wage regulation, it sounds so simple to add a minimum wage until you comprehend that in a market economy, a minimum wage is a barrier to entry, meaning it make smaller sized businesses uncompetitive, because, it’s not like when you start or run a business that it’s guaranteed you’ll be successful, 9 out 10 business fail without government regulations.
Adding government regulations to a market economy just makes things worse, what a simple labeling machine could do, the government regulated out of business. In some polybags as an example, there’s a suffocation warning label, really, in the end, that’s it, that’s all that needed, people who care about that stuff will read the labels, people who don’t care won’t read it.
For tax and voting-related purposes governments in Canada prefer big businesses over small businesses, bigger business not only pay more income taxes in Canada, they also often have voting blocs, sometimes those voting blocs are unions, or in the case of Cargill Inc. migrant workers keep the true cost of meat processing in Canada down.
Because after all if Unionized Canadian workers worked at Cargill Inc. meat processing in Canada costs and ultimately meat pricing for consumers would be a lot higher than it is today. Now, if meat prices or I should say food prices in Canada we’re ridiculously high, what would most likely happen politically?
Three meat-packing plants turn out 85% of Canada’s beef. How did this happen? | financialpost.com
Interesting times ahead!