Economists unite

Mike Moffatt announces the first major plank of the hypothetical Canadian Economists Party’s hypothetical platform: dairy supply management reform.

The cost to such a policy is high – Canadian consumers massively overpay for dairy products while at the same time our ability to enter into free trade agreements is limited by our subsidies to dairy farmers.  The policy represents a wealth transfer from consumers to dairy producers of over 2 billion dollars a year (Source).  I use dairy supply management as my example when I introduce The Logic of Collective Action to my Ivey students.