Thursday, June 17, 2010

Who gets bail?

I am not taking a position on this . . simply asking the question. Where is the line drawn for bailing out businesses that are suffering because of unanticipated conditions? If farm businesses are hurting because of the weather conditions, should they be bailed out by governments? If so, what about the small business who face the same fate (ie the summer food vendors, small retail clothing, etc.) Add to that the large retail businesses. I expect that a store like The Bay isn't moving much summer clothing stock and within the next four to six seeks they will be putting out the winter stock. I further expect this conglomerate can weather this season, but if criteria is established, what should it be? For the most part the days of the small mixed family farm are gone and we have fairly large corporate farming operations. Is it up to these farming corporations to do business planning to prepare for a bad year? Or should they be able to rely on the tax payer to assist during these unusual circumstances?

If the measure for financial aid is any business whose failure would have a negative effect on the overall provincial economy, then they would, arguably, all meet the criteria. If the measure is only those businesses that provide necessaries, then the field is limited.

I'm not looking for cheap shots with this question. I would like some serious response.


  1. Ahhhhh..... decisions, decisions, decisions brought on by the perverted form of capitalism that we use. In my true capitalistic nature I say that no one should be entitled to a bailout (farmers included).

    If climate change (haha sorry, it makes me laugh) made it so that no snow would fall in Saskatoon one winter would we also be bailing out every industry (ie snow removal) that relies on the winter snow.

    Farming is a business despite what many people think (most farmers??), if a business does not have a back up plan for times of emergency then that is their problem. If this was the cause of someone then perhaps I could understand expecting some sort of a bailout (like BP causing entire coastline of businesses to shut down), but for an 'Act of God' I'm afraid there is no reason that anyone should receive a bailout.

    If you give it to one you have to give it to them all, and Big Business Farms don't deserve bailouts.

    Those are my thoughts

  2. unfortunately governments have created this mess themselves by having their hand in deciding how much a farmer's product is worth - rather than a free market society as described in the post and comment. If Canadian farmers were to sell their product to whom they wanted to and to the highest bidder, then they absolutely should not be asking for handouts. If the system were to change we then would see a myriad of posts/complaints about the TRUE cost of bread!

  3. I grew up on a farm and I left the farm ... because farming is no way for most people to make a living.

    Of course, farming won't disappear from Saskatchewan, but the old model has changed. Those who thrive are usually those who inhereted plenty of capital, land, and/or business sense, with an emphasis on the latter.

    It would be nice if the Europeans and Americans would cut their subsidies down to a more humane level so that our farmers could compete more. Ultimately, however, farmers have made their choice, and they ought to take responsibility for that choice.


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