this post was submitted on 05 Oct 2023
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I wonder how much of the cost of living crisis is due to our shitty productivity?
It seems like regulations and government programs favour incumbents, be it telecoms who don't want to deal with upstarts, fish plant owners who don't want to automate, Tims franchises who don't want to pay their workers, or NIMBYs.
I get that there were supply chain issues due to COVID-19, but did those cause problems, or exacerbate existing issues?
The Competition Act was weakly designed with the purpose of allowing a few Canadian companies to grow large. It was thought at the time that this would mean Canada could be a big player on the global stage, but instead it just trapped Canadians in the inevitable consequences of a marketplace dominated by monopolies-- high prices and little choice. You can thank Chicago school economics acolytes and leaders like Mulroney, Reagan, and Thatcher for htis.
High cost of living is one of the causes of recent drops in productivity. There might even be a feedback loop hidden so where in there.