Thursday, December 6, 2012

Denis 'Blinky' Lebel CP Rail And Barriers To Entry

A person who knows nothing about literature may be an ignoramus, but many people don't mind being that.
Northrop Frye, The Educated Imagination, p. 2

It is very gratifying to see that the spin doctors and fart catchers of the Prime Ministers Office have finally found the solution (drug?) to Denis 'Blinky' Lebel's very telling and hilarious eye twitch. Now that they got that solved, perhaps they can start schooling the pathetic Minister of Transport and Infrastructure (!) on the basics of economics and the role of government, especially as it applies to avoiding instances of market failure and the problem of barriers to entry.

CP Rail is not a lemonade stand...

It was all brought to light today in Question Period. The very sharp Olivia Chow drew the short straw again and was tasked to put the Minister to task about what was going to be done about the recent 4,500 jobs being cut at Canadian Pacific Railway and how the effects of service and cost to its customers were going to mitigated by the 'Harper Government'? Well up stands 'Blinky' and does the free market capitalist bullshit shuffle how government has no right to interfere with the managers and stockholders of a private business! The Oracle of Ottawa was aghast at the level of ignorance that this "Minister" displays.

A transcontinental railroad is not a lemonade stand! In free market capitalism if 'Blinky' starts a lemonade stand in Ducks Ass, Alberta and he is not making a very competent go of it, the Oracle of Ottawa can open up another lemonade stand across the street or down the road close by and with better service, product and a cheaper price per unit, the Oracle of Ottawa could drive 'Blinky' out of business. All fine and good. Except you cant do that when you are up against a monster transcontinental railroad, that has a market cap of  6.5 billion dollars! That is a demonstration of a rather small barrier to entry.

Also out West, the heartland of the 'Harper Government', CPR has virtually a monopoly in many areas. Not all areas are served by both CPR and CN. Therefore when a railroad is in trouble or trying to make trouble it god damned well is the business of the government of the day to get involved! And if the said line and road is trading for a fire sale price on the stock markets of North America it is the responsible governments job to consider getting into the railroad business (again). Fix the sucker up and then offer the shares back at huge profit, just like the Liberals did with Canadian National! And Canadian National is a hell of a lot bigger than Canadian Pacific! Doesn't 'Blinky' know such things?

In closing, it has come to the attention of the Oracle of Ottawa that the Minister 'Blinky' was a member of the sovereigntist Bloc Quebecois! (July 23, 1993 - April 28, 2001) Tabernac! Why isn't some one from the Royal Opposition asking 'Blinky' if he is really a Federalist? Get him on his feet and ask him to say if he loves Canada! And this summer, on the break, get him enrolled at University du Quebec in an introduction to economics course! Whats that? Your kidding me, right? All right then, get him enrolled in high scholl this summer....

You can't just start up another Canadian Pacific, like you can a lemonade stand.... Back Olivia Chows bill!!

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