Daycare Update And Monopolies In Markets

I don't think much of an argument can be made on the contrary. Unless I may be missing something.

Look. It's simple.

The state skews pricing and competition. Companies don't create monopolies onto themselves because they don't have regulatory power to force anyone to play by their rules. It's why collusion may work for a time but it ultimately fails, I reckon, in the long run. It's the conflation of state-corporations that make a mess of things when in reality, there should be a strict line dividing the two. That means sometimes society will have to face some ups and downs in market cycles; sometimes violently. Best to let "natural" marker forces work it out. It can be long or short. The question is can we take it?

In my business, I quickly learned how subsidized daycare makes my position as a private operator very hard. A lot of people come on my side expecting to be paid and treated like a public servant. It's a tough bind because subsidies skew reality. I don't have the "free" cash. They come thinking they're worth $16 an hour but in reality they're worth maybe $13 or $14 - don't forget payroll taxes are heavy on the front end so I have to account for that. If I go with a public pay scale, I give up too much of my revenues.

Same with prices. My "magic" price is set and now I have to determine if the market can bear it. Again, government skews price as a subjective value. By offering $7 a day care in a society used to being coddled by the state, it conditions people to believe this is the true cost of operating a day care. Of course, it isn't. The cost of running a day care is far, far higher. About $30-$35 if you want to make some money.

What happens? People automatically assume you're out to fleece them (and pay close attention to leaders like Obama. That's the prevailing outlook) at $30 because they're measuring it against $7. It has to be explained to them. Even then, it's a tough gig. The government is aware of this little problem and it's why they offer tax credits paid out monthly up to $35. They know they need to fill the demand and that private daycares are key but wouldn't survive without the credits. At least, that's how I observe it.

Which begs the question: Why even bother getting involved? Just cut people a cheque for X amount and let them figure out how to spend it. It would save a lot more trees and headaches.

So. how do I attract workers? Well, it hasn't been easy and I need to show the government all my files before they give me a permit. In effect, I'm forced to overpay because most of the candidates that come in are expensive. The state doesn't permit me to use, say, an immigrant worker with qualifications earned abroad and would be less expensive. Like they do in the medical profession. We have a doctor shortage (like we do a qualified educaiton problem) because our rules, though meant to protect us, are a tad rigid and create superficial shortages.

Again, it's not complicated stuff and has nothing to do with "evil" greedy businees people - a malaise among North American these days is to demonize business.

One way is to higher a consultant to buy into their network at first. That way, I can find workers. Another is to find incentives - like Group RRSP because health plans are too expensive at first. Another is a superiour work environment - which I believe we can offer given where our place is situated and the renovations made.

It's not easy. But it could have been far easier if it were not for the heavy regulations. Alas, you work within the system you're given. Play by the rules and hopefully enjoy the rewards later.