this post was submitted on 08 Oct 2023
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I don't understand why those would cost 40%+ more. We produce these products here, and they are subsidized, so what exactly accounts for such a disproportionate consumer cost?
They are not subsidized, at least not in the traditional sense of the word. They are supply managed. That means the supply of product is artificially constrained. Think of it like a “shortage”, except created on purpose by the government.
This sounds like pretty traditional subsidies.
And these same products are not supply managed in other countries? If not, how come? If so, why are Canadian consumers paying a disproportionately high amount for them?
Fair enough. On the other hand, you could say that is compensation for the government not upholding their end of the supply management deal, rather than being a traditional subsidy.
Not anymore. The UK, Australia, and New Zealand used to have similar systems, but they've been long since abandoned.
It is likely a four year university degree to delve into that complex topic, but I guess the short version is that most countries didn't go down that road in the first place, and the few that did gave into the pressure to abandon it.
Canada has felt the same pressure, and through the 80s and 90s it seemed like we were close to going the same way, but that tide has turned. There is no political will to go that way now. If you recall, Maxime Bernier's political career was destroyed because he suggested that supply management should come to an end.
As you can see in your link, the government is on the hook to pay farmers when supply management is encroached upon. If supply management is to be abandoned entirely, Canada has to buy back the quota in full. I suspect we are afraid to go down that road because we don't think we can afford it.
It really sounds like we (Canada) needs to revisit how this is done. Sounds like a terrible system, and consumers are losing big time.
Some have been saying that for 50 years. But where is the will going to come from? Canadians seem generally in favour of the system. They think it protects them from that 'horrible American milk'. And nobody realizes that poultry is supply managed because dairy gets all the attention.
Perhaps stories like this one will change people's minds.
The same story has been told for 50 years. What do you think is different now?
Cost of living is a lot worse now than it was 50 years ago. The internet also reveals how broken things are, much faster than news on cable TV in the 70s and 80s.
Not that I think anything will change, but it seems clear that something needs to.
What about four years ago?
As mentioned earlier, Bernier tried to make it an election issue in the 2019 federal election. First by making it his platform in the CPC leadership race. When that failed, he created the PPC party on that platform. When that failed to attract any support he gave up and went to crazy town, but he made it something we were talking about for a while there. It was also front and centre during the USMCA talks.
And it became abundantly clear that Canadians have no interest in seeing it change.
Not even close, from what I can tell. Annual inflation alone went up 9x more in 2022 than it did in 2020, and around 3x higher than any other year since at least 1990.
Groceries, housing, and gas are also significantly higher now than they were in 2019. And 2023 inflation rates appear to be 2-5x more as rates continue to be soul-crushingly high.
I think the majority of Canadians either don't believe they have the power to force the government to change, or don't know they can. Our voter turnout rates should give you an idea why change hasn't happened.
Personally, if I lived closer to the border, I'd probably be grocery shopping stateside, too.
That doesn't imply they are less affordable. Earnings are up 20% since 2019. CPI, which includes those things you mention, is only up 16% over the same period. Retirees on a fixed income may be feeling the pinch, but they more than anyone have been hearing the same story for 50 years.
While that is true, it is clear they don't want things to change in this case. We had a national discussion about it not all that long ago. The people made their case for why they don't want it to change, even knowing that it costs us more.