Canadian Supply Management Price Stability For Farmers Via a Diary Cartel vs. U.S Government LOANS for U.S Farmers, which leads to Excess Supply. Let’s Be Fair – July 11, 2022,
One of the reasons I’m writing this is because of what’s happening with Canadian Charities, at the moment. Left Wingers in Western Nations are always looking for an enemy to destroy, currently, the enemy that needs destroying is FOSSIL FUELS, which is an attack on GLOBAL food prices. The left-wingers are convinced MAN-MADE climate change is a problem and humanity needs to transition to government-approved energy sources, which let’s be clear is creating a MONOPOLY in the marketplace.
Supply management is a monopoly, and there are multiple ways to look at the supply management monopoly in Canada from the point of view of the BENEFICIARIES. One of the main reasons food scarcity exists in the first place is because of governments all over the world. Canadians who want to preserve supply management consider excess food from the United States that could make it to Canadian store shelves at a DISCOUNTED price as DUMPING?
Meaning that the beneficiaries of supply management want to LIMIT the options Canadian consumers have. Just so I’m clear, I have my OWN PERSONAL views on food, which include LABELING, I’m of the belief that labeling is powerful, I do think made in Canada ANYTHING will sell if it’s promoted correctly, and said business isn’t dumb enough to get political and choose a political side.
EXCESS food is how we end global hunger, one of the problems with modern farming is the PRICING derived regulations, that stem from CENTRAL BANKING and THE NEW DEAL in the United States. Canadian farmers are NOT responsible for the
About 40 years ago a Canadian could buy a HOUSE for as low as $40,000. In modern times, that same $40,000 house could be worth $1 million+ dollars, why? Because artificially low-interest rates created an ASSET pricing boom.
But to be fair to Canadian farmers who benefit from Supply management, let’s talk about who I consider one of the worst Presidents in U.S history Franklin D. Roosevelt(FDR), and the New Deal which included the Agricultural Adjustment Act. The Great Depression was actually triggered by the LABOR UNION movement. People tend to ignore the GOAL of Labor Unions.
The end goal of Labor Unions is to FIX PRICES in the marketplace. Labor unions wanted a minimum wage and social security, and people forget the TERRORIST attacks of the labor union movement. During that era, the Republicans REFUSED to bow to the pressure of the labor unionist and this led to a DEMAND, for Franklin D. Roosevelt.
FDR was a politician who was willing to make a NEW DEAL to Americans, which included PRICE FIXING! I don’t care if you like minimum wage laws or socialist security, it’s PRICE FIXING. The moment the government starts fixing prices and guaranteeing “social security”, the government is not only fixing prices but guaranteeing people who STOP working CASH FLOW for life.
Now, sure these objectives sound nice, if you’re financially UNEDUCATED, but it’s the ROOT cause of why the Gold Standard had to be ABOLISHED. There is a COST to mine gold and to bring it to market and being that Gold and Silver are scarce resources, how could ANY government promise minimum wages and social security under a Gold Standard?
So for me whenever I hear about claiming we will return to a Gold Standard I have to wonder what these people are smoking. If Canada, were to get rid of its supply management system, it would be considered a form of AUSTERITY. There are MILLIONS of people in Canada and the United States who DO NOT HAVE a job, and are collecting welfare money from their governments, and the average WORKING Canadian and U.S citizen is okay with this.
So try and explain to me how in the world we’re going to return to a Gold Standard when the marketplace is this distorted? Not to stray too far from the point I’m trying to make here. The Canadians who want to keep Supply Management, do have a leg to stand on. I’ve often written about the Canada Post model vs. The United States Postal Service(USPS) model.
Canada Post usually doesn’t require a bailout, because their monopoly on mail delivery, allows them to charge Canadian consumers whatever price they imagine Canadian consumers can afford. I’ve written several times, that Canada Post should have been making RECORD profits in Canada if it had the USPS BAILOUT model.
Both models are corrupt I know, but USPS has to ADHERE to the demands of the public, whereas Canada Post doesn’t. Canada Posts union is inflexible because it doesn’t have to be flexible because the Canada Post monopoly can’t be challenged. Therefore the people in charge of running Canada Post, CAN NOT make necessary investments because the Union imagines investments that don’t IMMEDIATELY benefit the union aren’t worth it.
USPS can’t operate that way, because it’s part of the Federal government and U.S CONSUMERS are very DEMANDING towards a government agency that belongs to them. USPS in the U.S is a POLITICAL issue, whereas, in Canada, Canada Post, similar to the Dairy supply management system is a CROWN CORPORATION(State Run Enterprise) that operates independently of the political process. There’s only so much the Federal Government of Canada can do with Canada post.
The article I point to below will give an idea of how INCOMPETENT and hard to deal with Canada Post is, during the pandemic the Prime Minister of Canada Justin Trudeau used AMAZON(a private US company) to deliver MEDICAL equipment, to avoid the hassle of dealing with Canada Post. Really think about that!
Eventually, Crown Corporations believe their own hype, in Canada, you’ll hear politicians would want to preserve Supply Management, claiming “It’s a SUPERIOR PRODUCT” which obviously leads to the term “DUMPING” being used to describe the potential U.S and foreign competitors. This is very unhealthy for Canada in the longer term, however, because, it’s dumbing down process.
Subsidies and loans differ from an UNEARNED monopoly, a government monopoly creates all sorts of inefficiencies, as example Supply management in Canada generates over 345,000 jobs in Canada. When talking about Supply management you have to also talk about the National Farmers Union in Canada and the United Food and Commercial Workers Union that is in both Canada and The United States.
Now, because the U.S side, is more market-oriented, their unions have to be more flexible, but on the Canadian side, inefficiencies are PROTECTED. So in Canada, politicians are ENCOURAGED to avoid going after Supply management. There are all sorts of unions and special interest groups who will make your political life a NIGHTMARE if you go after Supply management in Canada, which ofcourse fuels inefficiency.
The challenge of course is where Canada could be headed in 2022 and moving forward if these war on fossil fuels objectives are achieved. You see during the good times, the times in which people have disposable income. supply management works goes unnoticed, but during an economic DOWNTURN, this could quickly turn into a DISASTER.
When the economy DEFLATES, and the people are against AUSTERITY, it equates to the government likely DEBASING the money supply, because as society gets poorer, the people are going to argue for government stimulus, but supply management, won’t allow prices to COME DOWN. Production costs are what they are and when the government THROWS money at problems as costs rise, it sends a lot of INCORRECT signals to the marketplace.
I’ve been calling for the price of OIL to crash. Now, with the rising price of oil, that’s welcomed news to Consumers, but you see the DOMESTIC war on fossil fuels, by Canada and America equates to OPEC being able to enact their own SUPPLY MANAGEMENT policies for oil, so if to keep prices HIGH, OPEC during a declining or recessionary economy, may decide to RESTRICT supply, to prevent oil prices from going to low.
Supply management is indeed a system of promoting POVERTY worldwide. I still hear people saying “immigrants will lower labor costs” meaning that the government should CONTROL competition in the marketplace. PRICE CONTROLS are one of the evilest creations of Marxists, Socialists, and Progressives. Price controls fuel poverty, one of the reasons you’ll see CLL PHONES in the poorest regions of the world, is because there aren’t many PRICE controls on technology.
When prices are allowed to DEFLATE this is a good thing, in regards to farmers, the WELFARE State is what they should have focused on from the beginning, because the real problem I see is people who REFUSE to work and are receiving government benefits. Now, what’s fueling all of this is ofcourse LABOR unions, who are RESPONSIBLE for the welfare State.
To stay on point here, both the Canadian and U.S systems on Dairy are immoral, but the Canadian side has far more to lose if hyperinflation becomes a problem as many of the beneficiaries of supply management would have serious structural problems for their business if they were forced to compete in a free market, whereas American farmers without or without help from the U.S government have already gotten used to SELING their ideas and products to the market in a competitive environment.
When you or your business is PROTECTED from competition, your business will have all sorts of BLOAT and inefficiencies, that you might depend on because you’ve never had to worry about a competitor trying to take your market share. If Canadian farmers lost supply management, the United States wouldn’t be their only problem, because it’s not like other foreign competitors aren’t frothing at the mouth to lower food costs for Canadians.
Interesting times ahead!