I had an interesting discussion recently about unintended consequences. The subject arose when discussing quick fixes to a variety of issues related to social protests in the country I was visiting. People were suggesting that apartments are too expensive, so rents should be reduced across the board. I asked why landlords would want to build new apartments or fix their existing ones if they suddenly lost their income.
Are rental rates uniformly too high, or was there a lack of supply of housing at the lower end of the rental market? Of course, we would all like to see a reduction in anything that represents a monthly bill: rent, utility bills, parking, bus passes. Quick fixes often have unintended consequences.
It got me thinking that Canada has had its share of unintended consequences – some notable incidents in the telecommunications arena. With an especially fragile economy, we need government programs and strategies to avoid the kinds of disincentives that might discourage investment, employment and long term economic growth.
As we get into a new session of parliament on a federal level and enter a season of provincial and territorial elections, let’s hope that our leaders look beyond populist quick fixes in their campaign promises and economic programmes.