Saturday, February 2, 2008

How about those Canada only contracts


Many people support the idea of "Canada only" contracts for public works because they believe that it will increase Canadian living standards by keeping the profits at home. This is not the case. Yes getting the exclusive right to bid on a government contract does enrich the company who gets the contract. However, the workers and resources that it takes to complete these projects are drawn from other sectors, this in turn leads to lower productivity. Lower productivity leads to a weaker economy and lower living standards. Sadly, Canada only contracts are a political plow to play on peoples patriotism, while politicians enrich those who contribute to their campaigns.

4 comments:

Lenin3 said...

As an American and a U of T graduate student, I am often horrified by Canada. I know the U.S. doesn't do any better but Canada seems to think that autarky is a worthy goal.

And can we please get a rant against the LCBO and their attempts to defend their prices as in-line with U.S. prices? The reason why a government establishes a alcohol monopoly is to drive up the price. Period. END OF STORY.

The nanning that goes on in Ontario makes me sick.

Sorry for my rant.

Tyler said...

fellow UofT-er and native Canadian here. Agree wholeheartedly. My own opinion is that Canadian boomers are the worst boomers in the world, and they are the main support for most of the bullshit policies (save the auto manufacturers, banking oligopoly, telecom oligopoly etc., LCBO)

I'd say 90% or more of people under 30 want the LCBO abolished (if they think about it). One noticeable thing about the LCBO is how much local business they kill. For every one LCBO I'd say that the typical Albertan city has 5 or 6 mom & pop liqour stores.

The cell phone carriers are another protected industry that has got to go. I think that consumers will force it eventually. One of the few good initiatives the Harper government has undertaken is opening up the cell phone spectrum to (Canadian only.. sigh) competitors.

Lenin3 said...

That is an interesting point about Alberta.

I have always thought that in Toronto the amount of homogenization is amazing. It probably points to the amount of cross-subsidization alcohol provides stores.

I never thought that such a big city could be so vanilla, but Toronto surely is.

I feel ripped off just walking down the street here!

I miss me some USA.

Downes said...

So instead we're improving our economy by sending our money overseas, where it will add not one whit to our productivity?