Argentina, when faced with unsustainable inflation, refused austerity for over 100 years, and the momeny the Argentine people voted for an Austerity Leader, the global Left wing media went on a relentless attack.
Both Canada and America, have entered a period of FORCED austerity, however as long as the Foreign exchange markets prop up the Canadian dollar, Canadian dollar holders will have a strong INTERNATIONAL purchasing power.
With that understood, the DOMESTIC purchasing power of the Loonie continues to fall, primarily because of the amount of PRICE CONTROL mechanisms in the Canadian marketplace.
Despite what many people think, the problem with Canada post is not their workforce, it’s actually their unfunded long term liabilities, which continue to grow without.
Example, Canada Post pensions are unsustainable, if the CURENT workforce continues to allow the union to dictate the flexibility of the Crown Corporation. The United States Postal Service, is often not making enough money, because it’s forced to compete with the marketplace, and it’s slow and inefficient.
Canada Post on the flipside, has a flawed PRICING MODEL. When Canada Post runs out of money, it raises prices on it’s consumers WITHOUT changing the structure of it’s business model.
Canada Post doesn’t have to answer to the government in the same manner the USPS has to answer to the president. If any American President wants to get elected, he/she has to make sure the USPS is on board with the agenda, Canada Post doesn’t have that burden.
The Canada Post went on strike during the Christmas season under Justin Trudeau and it would go in strike during a Conservative administration, because it’s not part of the political process, Crown Corporations are State run enterprises, that can decide n their own how they can make a profit, so most crown corporations in Canada, pass their costs onto consumers unabashedly.
When you do this long enough you start to believe your own hype, which is the problem Canada Post has now. They have an BULLY business model, in which thye do what they want and when they run into problems they raise prices.
This system works well until it doesn’t The Venezuelan government has the same model for their STATE-RUN oil monopolies and what happened eventually was an “unexpected” collapse of their oil revenue.
The collapse was obviously foreseen, but having a monopoly grants you the right to kick the can down the road for as long as possible, and that’s what I suspect will happen with Canada Post
Canada Post lost nearly $750M last year, future now uncertain
It’s hard to imagine Canada without Canada Post, a company that has existed for 157 years. But there are serious questions raised about the survival of the Crown Corporation, as top executives held their annual general meeting this week and offered a bleak outlook. The chair of the board warned the postal service is at a “critical juncture” and that its financial situation is “unsustainable,” having lost nearly $750 million last year. Touria Izri has the details.