Defend, reduce or scrap


The government was fairly adamant yesterday that it would defend supply management. Steven Chase imagines how they might reduce tariffs without abandoning the system entirely. Stephen Gordon considers how difficult it would be to scrap it.

The ideal solution to the problem would be to invent a time machine, go back to the 1970s, and tell policy makers what a terrible mistake they were about to make. Sadly, this is not possible. So how can we reduce dairy prices without ruining present-day dairy farmers who bought their quotas in good faith? One option — as described in this CD Howe proposal — would be to slowly increase the number of quotas over a long period of time, so that they gradually lose their value. When they are essentially worthless, there would be little loss in abolishing them.


Defend, reduce or scrap

  1. Scrap it, please…..toot sweet….areeba areeba, undalay undalay…

  2. A sine qua non for eliminating marketing boards etc. (when due to trade talks) would be the demanding of the elimination of the huge subsidies that the Americans and Europeans pay to their farmers.

    Yeah, milk, cheese, and eggs are cheaper in the States than here but Americans paid with their taxes to keep the prices that low.

    If we wish to unilaterally disarm on this – and any other case of government subsidies (hello aeronautics industry) than that is another debate.  One which I would not be averse to having.

  3. If supply management is gone then this is the end of Canada being able to feed itself.  The farmers are one of the hardest working individuals in this country.    We are the backbone of this country.  If the job was easy all Canadians would be farmers.  The leaders of today have lost all common sense and the mighty dollar rules.  Can Canadians eat the manufacturing sector?  They are the ones that will benefit!!!  This country needs to starve before the leaders understand how important farmers are.  Common sense is truly gone with our decision makers and it will be too late before they wake up.   

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