William Watson: Ottawa fights inflation by raising costs

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William Watson: Ottawa fights inflation by raising costs
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Although denticare does reduce some people’s dental bills dramatically, the effect for everyone else is inflationary

First there’s the news that people handing out grants in the ministry of Canadian Heritage will get more training on diversity, inclusion, antisemitism and so on. You’ve got to wonder just how much training a person needs not to hire anti-racism educators who in their social media posts use such phrases as “loud mouthed bags of feces … Jewish white supremacists.”Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

Fewer grants might actually be a good thing. Fewer anti-racism grants to apparent racists certainly would. That’s a classic problem with measuring inflation. You have to control for the quality of the product. If the quality of the average grant goes up — if it’s less likely to be frivolous or outright harmful — then even if processing costs rise, the net effect could be a in price.

True, higher prices will encourage some new dentists to get into the business and will squeeze some non-subsidized customers out — both of which will offset the price increase somewhat. But a price increase there is very likely to be. So although denticare does reduce some people’s dental bills dramatically the effect for everyone else is inflationary.

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