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Thursday, November 24, 2011

Against Supply Management

My old prof, Michael Hart rightly eviscerates the practice of supply management.


Why should consumers benefit only from stable dairy prices when there are so many other sectors that could benefit from sup-ply management?

How about the Auto Assemblers of Ontario? Premier Dalton McGuinty might like the concept, as would the Canadian Autoworkers. Each assembler would get an annual quota, divided among one or two models. (The number of choices available today confuses consumers and is wholly unnecessary.) Imports would be strictly limited and quotas to import would be provided to the assemblers. Prices and quotas would be set by a Canadian Auto Com-mission. There are so many possibilities with this particular economic model that should provide broad appeal.

International trade as we know it would have to come to an end, and Canada would need to with-draw from the WTO, but the Dairy Lobby has long told us the WTO is a nuisance. We would rely on supply managed Canadian production for most of life's needs, as organized by a wise government and a series of commissions dedicated to determining the right size of the market and the appropriate price to ensure a fair return. Not only would prices be more stable, but so would supply and employment.

AM: Why does supply management continue in dairy? The same reason that protectionism continues: a powerful lobby group. The cows moo en francais. Consumers are not sufficiently aware, nor are the sufficiently mobilized to act as an effective counterweight to these special interests. Luckily, the Harper government is turning against supply management. Finally, a little bit of that free market ideology that they purport to espouse.

4 comments:

  1. A beauty.

    Outlaw our current lobbying framework!

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  2. Out law lobbying, TG? that basically means you outlaw the practice of talking to public officials about issues.

    Supply managenment will go the way of the dodo under our glorious conservative government .the lazy wheat farmers were first, and now the lazy dairy farmers will be exposed to the winds of economic compertition. I hope they can keep up or else Canadians will have to buy their cheese from other places. Doesn't matter either way in my view.

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  3. just to add, this is why we can't allow the corrupt liberals back into power. Special interests always win when they are in charge.

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  4. I agree with TG that some solution to lobbying would be a good thing. Not sure if a ban is feasible though. Maybe more rules on government officials.

    Anon: it's not that they are lazy, only self interested. Too bad they have such a large say in policy. But it looks like that is changing.

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