Die Regierung von Manitoba friert den Preis für einen Liter Milch ein und sieht weitere Preisobergrenzen vor

Freezing price on a supply managed product. How many layers are we going?

I get the intention behind this. That being said, I’m not sure this is the right call.

*And this is why no one takes the NDP seriously*.

**Price Controls dont work**. Many, many places have tried it. And it never worked and caused way more problems. Shortages…. black markets… hyper inflation elsewhere.

Here is a good paper on it. But there are a thousand high quality works on this that all say the same thing.

*“Targeted Price Controls on Supermarket Products“ (Cavallo & Aparicio, Harvard Business School).*

**QUICK BREAK DOWN OF THE PROBLEM**.

When you Price Control, you ban a company from raising prices. This feels good… but the problem is, once there is an increase in the price of an input product (grain, or machines that do the milking) they *Cannot pass this price increase on*.

So now not only is milk a bad business… there is a real risk for those in it that they start losing money… or in the very least, make much less than they could doing something else (beef?)

Now supply crumbles because who wants to get into that type of business.

Now stores sell out in 20 minutes because no ones making enough milk and no one wants in the business.

And now no-one can get milk…. unless of course… you know a guy who knows a guy. And everyone is buying their milk out of the back of a truck for $20 a bag. (And lets be clear…. Health Canada aint getting invovled so Health standards plummit).

Now we have collapsed supply. Dead industry and a shady black market.

**Every. Time.**

This will surely backfire

Is there any public policy that lives up to the „But it might work for us“ meme the way price caps do?

Like, it’s been tried so many times, in so many places, producing the exact same results that entirely line up with what the overwhelming majority of economists predict…

After seeing entire milk sections with „50% off“ slapped on, about to expire in two days B/c it was grossly over priced here in Alberta i applaud this.

This is real good work by your premier.

Milk is a perfect example of the kind of price meddling the governments should not fucking do.

Man, I like Wab Kinew. Where is *he* in the fed NDP race?

So not the ones families are buying…

„The current price limits only apply to one-litre containers, but Kinew says the government is considering whether two- and four-litre containers should also be regulated.“

Food commodities should have a price cap, if the profit margin can be supervised. Unfortunately due to the lack of transparency, it’s anyone’s guess.

In a better management system, food is made accessibile to the public, with shortfalls covered by government in subsidy. Realistically this would get abused and the government needs to have its own line to lead the industry standard.

Look at Petrocan, once it was sold to private equity, the entire oil industry began setting their own prices and the gas price sky rocketed. Gas price stays up and goes up even when crude was down.

Slippery slope here. Mess with the pricing and it breaks the principles of supply management. Cutting production costs to famers creates production fluctuations to the point of boom and bust scenarios. Then the government would be forced to start subsidizing dairy farms. It takes years to establish a dairy farm if there are no cows around.

This country treats milk like a commodity like gold and treat gold like milk. Won’t help in long run. He could buy 1 million cows under the name of King Charles’s bank account if you need find the necessity to reduce price. We have excess milk in the country, that the reason for lot of cheese , butter and other products infused with milk to basically store it in some form

In other news Wab confirmed his next steps will be to have a new Provincial Ministry – the Ministry of Dairy – to Provincialize existing dairy farms.

He also asked the press to now refer to him as ‚Dear Leader‘.

Its funny because people who voted for the Liberals cause „Carney has a PhD in economics“ probably support this, showing they actually have no idea what economics is and how it works lol.