Supply Management only helps a handful of Canadian Dairy Producers: New Zealand cheers Canada’s loss in dairy dispute and calls for ‘significant reform’ – January 18, 2022,
Supply management in Canada works primarily for one reason and one reason only, Canada borders with the United States. Let’s stop pretending that Quebec is bankrupt, there is constant pressure on the Bank of Canada to keep the Canadian dollar low to keep Quebec happy because Quebec’s economy doesn’t work if the Canadian and U.S dollars are near parity.
Quebec a perpetual have-not province is heavily dependent on Supply Management, Maxime Bernier, assuming that Beauce federal electoral district in Quebec had some morals, ran on ending supply management, well twice he got his ass kicked by the Conservative candidate who promised to maintain the status quo.
Socialism destroys a person’s morals and will destroy your economy, New Zealand learned this hard way in the 1980s, one of the reasons New Zealand is so competitive now, is because they were forced to end their version of supply management because when you live in an oceanic region, with no America to bail you out, you’re faced with the economic realities that your markets have to be competitive.
Canadian dairy need not worry about being competitive, because when they feel the need to raise dairy prices, LEGALLY Canadians can’t protest by purchasing a cheaper alternative. Now, I’m all for quality, I personally like quality, but don’t force on it me, If I don’t watch a Canada Goose jacket, because I find it too expensive, I don’t want the government mandating that I be forced to buy the Canada Goose jacket, simply because it’s made locally?
Lastly, can we stop pretending that the target of supply management is to prevent foreign competitors, because it’s not, the target of supply management is to prevent local producers from competing, you have to remember that supply management is a national cartel and if you’re a Canadian dairy producer who can not take part of the supply management cartel, you too will feel the wrath of these collections of crown corporations and monopolized regulatory bodies.
What does, dairy look like in Canada without supply management? Well, if I’m to be honest, because Canadian dairy isn’t used to competition, they’re going to be destroyed if they’re not careful. You have to understand that supply management leads to a lot of MALINVESTMENT! A lot of innovative thoughts that exist in many parts of the world, don’t exist in Canada, because via their government protections, the Diary cartels didn’t have to worry about competition.
So if you listen to most of the idiots, defending the cartel, they imagine that everything Canadian is the best? Of course, this isn’t based on any research, they’re basically regurgitating union talking points, Canada has a very strong union culture, by that I mean, a lot of Canadians do not know how to function in a free market economy. Without government, unions have to prove their worth, which is why in America, unions have been falling out of favor with the American people, the only Unions that appear to be growing, are unions that are public-sector unions or labor unions that have a winning politician in their back pocket.
Because politicians have been so accommodating to labour unions, one has to start asking what do we need private sector labor unions for in the modern era? Supply management operates as a powerful labor union, which makes most of its processes inefficient. All that aside, this battle is not over yet, I don’t expect the lovers of supply management to simply roll over and die, but if this loss signals the end of supply management in Canada, any beneficiary of supply management will want to consider adjusting their business structure now, because as a person who has their own business, I know first hand that the Canadian consumer loves low prices and if you’re going to charge higher prices you’ll have to justify your higher prices with superior quality.
Interesting times ahead!