Justin Trudeau Could Have Fought To Keep NAFTA: Canada’s dairy processors to lose $100M if USMCA takes effect in July: Sen. Don Plett- April 29, 2020,
The first thing I’d like to say is I’m not a fan of Supply Management, in actuality, the real reason Canada’s Diary processors will have any potential problems in July if USMCA takes effect is that they haven’t learned to compete. What trade does is that it allows you to grow mentally, it allows you as a business to be more efficient, it forces you to become more creative and also it gives you a glimpse into the future.
Now, one of the main problems I saw when I read up on USMCA was how Union Boss of UNIFOR Jerry Dias approached negotiations. You appeared to be approaching negotiations from a position of how do we prevent Mexico from taking Canadian high paying jobs, when in fact Mexico wasn’t threatening Canadian jobs, UNIFOR and other poorly constructed Canadian labor Unions were taking Canadian jobs by disincentivizing manufacturers from being here.
But because a lot of labor unions in Canada aren’t upfront with their workers about how they still have to compete, most people in Canadian labor unions often assume that it’s all about the money, when in fact the problem Canadian businesses really have is the COST OF DOING BUSINESS!
Canadian dairy cartels have very high costs of doing business because they haven’t really had to compete before. When I purchase a business, I expect the business to be profitable when I purchase it, my focus, when I buy a business, is my customers. As important as my employees are to my business, they’re not the most important, because if I put my employees before my customers, my consumer pricing structure will be out of whack.
Price Controls, Price distortions, Inflated Wages and Global Deflation
In general, this has been my complaint about everything the government influences in Canada, they’ve distorted prices, wages, inflation and created an economy which is dependent on a lower loonie, when in fact all the numbers show that Canada would benefit from a stronger currency.
Because Canada has been in my opinion manipulating it’s currency this has led to a plethora of pricing distortion in Canada, which will be devastating to our way of life if Americans are allowed to be competitive in our market. You see had we gotten used to Americans pursuing profits in Canada, we would have allowed our dollar to appreciate and allowed money destined for America to come to Canada, which would have made our standard of living far better than it is today.
It’s not like we’re talking about some third world nation trying to sell into Canada, we’re talking about America, similar regulations, similar people, same language, similar a lot of things. But because Canada has all f these protectionist measures in place, a lot of Canadian businesses, simply do not know how to compete or function in a free market.
I often talk about Blackberry, Barack Obama was a Blackberry user, however, in Canada, when we have succeeded in something, a lot of Canadian businesses assume that this success should be allowed to be protected from foreign competition, being that Blackberry was in the competitive tech space, it was soon swallowed whole Apple, Huawei, and Samsung who now dominate the space that Canada really should have been very competitive in.
But you see why don’t have an atmosphere that attracts the best and brightest, the best and brightest don’t even need to live here in order to want to make a lot of money here. When companies have money offshore, that money is there because that countries government created a competitive environment for capital, countries with the smaller government often have a population of people who get more welfare not less.
Because when a lot of money is concentrated in one area, charities usually pick up areas in which the government is very inefficient, and private sector charities are usually more resourceful with money from private donors if the government stays out. If I’m donating my money to help the poor, I want to know how my money is being spent, I have no control over how the Government spends money on welfare.
As an example, right now Justin Trudeau is spending money on Corporate Welfare if I’m a big or medium-sized business and I see higher taxes, higher regulations, and a bloated government with no incentive to keep it’s costs down, I’m less likely to invest unless the government can offer me some protection. Even if the government offers my company some protections, I’m still in actuality shooting myself in the foot, because if my business is protected it’s likely that I’ll be as efficient as I would be if I was forced o be efficient because of my competition.
I’m hoping for the best, but the Canadian economy was built for deflation, I keep reading about how terrified some Americans are about losing their reserved currency status, I keep saying to myself, do they know what’s going on in the world outside of the United States!
Canada’s dairy processors to lose $100M if USMCA takes effect in July: Plett | cbc.ca
Interesting times ahead!