Suing over protectionism

From the CBC:

Brian Topp, who is seeking to lead the federal New Democratic Party, says if he became prime minister he would reverse the decision to end the monopoly of the Canadian Wheat Board.

I wonder if any member of the NDP would advocate an ad valorem tax on wheat, dairy, and poultry? Of course not. That type of tax would be highly regressive. While Canadians as a whole don't spend that much on food, poorer Canadians spend a higher percentage of their income on foodstuffs. Levying a tax on these items would harm them disproportionately.

Supply management is protectionism, plain and simple. It amounts to a tax/transfer from Canadians to farmers. Using 'world prices' as a basis, Canadians pay more for supply managed goods. Smart Canadian economists have figured out that it's about $72 per person per year. The profits to go the farmers. The arguments in favor of supply management are weak: price stability, and food security. Neither argument has ever held water. The main reason that supply management persists is the strengthen for the farmer lobby, and the general weakness of the consumer lobby.

Thankfully, the current government is taking action against the Canadian wheat racket. Farmers apparently want compensation for this... ha ha ha.

A class action lawsuit was launched in Saskatoon Monday seeking $15.4 billion in damages resulting from changes made by the Harper government to the Canadian Wheat Board.

The legal details are beyond me, but in principle, this is just idiotic. It as if they are entitled to sell their wares at high prices.

Part of the claim includes damages for lost price premiums previously obtained with the selling power of the board's monopoly.

Sorry, no. Consumers are actually entitled to pay world market prices. Lets hope the "Dairy Commission" is next.