Sunday, July 13, 2008

On mad government

Alison points out the connection between the ongoing reality of BSE in Canada and the Cons' choice to eliminate any federal testing as part of their compulsive attacks on government. But there's another part of the calculus which makes the Cons' decision all the more ridiculous (warning: PDF):
The economic implications (of BSE) for the livestock sector, meat and animal feed manufacturers, and the vast array of service sectors, such as trucking, sales yards and brokers, which provide support to the livestock industry, are
widespread. For the overall Canadian economy, it is estimated that for each $100 million in exports by the cattle sector, $80 million is added to the national gross domestic product (GDP) (at market prices), $228 million is generated in total output, $41 million is added to labour income, and 3,000 jobs are created. Therefore, the potential negative impact on the Canadian economy from a $2.5 billion loss in cattle and calf exports due to BSE translates into a $2 billion loss in GDP, a $5.7 billion decline in total output in the Canadian economy, a $1 billion decline in labour income and a loss of 75,000 jobs.

According to a report prepared for the Canadian Animal Health Coalition, the direct economic cost to the Canadian livestock industry by early 2004 was estimated at nearly $3.3 billion. An additional loss in equity to the cow-calf sector was estimated at $3.0 billion, for a total economic impact from BSE of $6.3 billion.
Now, it's precisely the testing regime now in place which has ensured that later cases of BSE haven't resulted in quite such severe consequences. And it's clear that the private interest in avoiding the worst possible results wasn't enough to ensure that similarly thorough testing took place before the 2003 outbreak.

But for the Cons, the danger of billions of dollars in economic damage is apparently seen as a small price to pay for being seen to hack away slightly at the federal government. And some of the rural voters who otherwise support the Cons ought to take a far closer look at how willing Harper and company are to jeopardize their well-being for a ridiculously small cost reduction.

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