Tag Archives: inflation

MayDay 2011: Price & Purchasing Program

Posted on by 0 comment

Canadians are getting ripped off.

We are paying more at the gas pump, despite being one of the world’s largest (albeit dirtiest) sources of oil.

We consistently pay anywhere from 20-50% more on basic items like cars, books, food products and other goods.  The continuous – and lame – excuse from suppliers is that the cost of doing business in Canada is rising.  Labour, regulations and other ‘impediments’ are positioned as the point of blame for these rising prices.

However, think of these excuses in context of current events:

  • Unions are being broken.  They are not increasing in strength.
  • Although minimum wages are increasing, they are not increasing 20-30% every year.
  • When was the last time you saw an overzealous government implement a broad change in tighter regulations anywhere in Canada?

Despite the fact that our dollar continues to rise in value, we are paying more for the goods and services we rely on each day.

As a reminder, for those of you who aren’t familiar with economic terms, when your currency rises in value, imported goods should be cheaper in an inverse manner.  That is, if your currency rises 20% compared to all other currencies, the cost of goods imported into your country should drop by roughly 20% to represent this increase in buying power.

As it stands, Canadians are getting screwed over twice because they only

The progressive party (as opposed to the regressive Conservatives) that proposes an investigation into the skyrocketing prices that Canadians are paying will win this election.

MayDay 2011: Super Price Me

Posted on by 0 comment

Canadian inflation stats came out today and it’s not pretty for Canadians.

A jump of 3.3% in prices means that we are effectively being taxes by bad economic policy.

As the Conservatives continue to lie about their economic track record, it’s important that Canadians remember it’s time we started to gain from the increase in our Canadian dollar and started paying LESS instead of MORE when our exchange rates changes.

Not enough for you?  The resulting jump in prices will likely lead to an increase in interest rates, another f-u to Canadians.

MayDay 2011: Prices

Posted on by 0 comment

The leader that proposes to address prices in Canada during the election campaign will win the election.

That’s prices of everything.

Here’s why:  Canadians are getting screwed.

As the value of our dollar rises compared to other currencies, particularly that of the US dollar, the cost of imports should be decreasing.  It’s a simple inverse relationship:  the more valuable our dollar, the more you can buy with the dollar.

It’s called ‘buying power’.

As a refresh, here’s a chart showing the value of the Canadian dollar compared to the US dollar:

Cdn-US-Dollar

Since 2002, the Canadian dollar has appreciated roughly 63%, from a low of about 63 cents to a high of roughly 104 cents (compared to the US dollar).

Despite this massive increase in value, prices have not dropped in a similar and inverse manner.  Of course, not all of our import/export relationship is related to US goods, but the fact is this:  the US accounts for roughly 50% of all imports into Canada.

In fact, the price for basic commodities – gas, food, etc – have increased 50% or more over the last few years.  According to the latest CPI figures, the price of gas has increased 18.3% since last March.

Again, Canadians are getting screwed.

Students, seniors, lower income groups and even the elite that Stephen Harper is courting – those few people that will enjoy tax breaks way off in the future – are paying higher prices RIGHT NOW.  An 18% increase in gas represents an 18% increase in taxes and yet no one is crying for the head of the Prime Minister like they do if the price of their Timbits rises $0.02 when the HST is implemented.

It’s slowly sinking in and Canadians are catching on to the idea that we’re getting hosed, but a wise leader would make this an issue sooner rather than later and attack these price increases.

The first step would be to promise an investigation into gas prices, followed by questions like why Canadians have to pay anywhere from $10,000 to $15,000 more for a Honda in Canada compared to the US when it’s made in Alliston and is exactly the same.

Prices: Why Canadians Should Be Outraged!

Posted on by 0 comment

I’ve been hearing a lot of talking heads lately yammering on about how we’re facing increases in prices for food basics like bread, meat, produce and other imports from around the globe.

Unfortunately, they’re all morons and they don’t know what they’re talking about.

Canada is a land of abundant resources and a dollar that’s appreciating because of a number of factors, the main one being the decline in the value of the US dollar.  Other factors include demand for our oil, wheat, soy, corn and other consumable products that are increasing in cost to the rest of the world.

As our dollar appreciates, we should be able to buy MORE goods in exchange for fewer dollars.  We should be selling our goods within Canada at Canadian prices, not international prices.

However, because we’ve surrendered our food security and general sovereignty to multinational corporations, most of which price their goods in US funds and then add a 20-50% markup for Canadians, regardless of the value of our currency, we are facing severe price increases.

If you don’t believe me, here’s an example:  Margaret Atwood publishes a book and the US price is $10.95.  The Canadian price is probably something like $14.95.  Canadian paper and Canadian author, but Canadian buyers get hosed.

This is insane.  If Canadians were faced with a 20 to 50% increase in tax rates, there would be rioting in the streets.

What’s also going to happen is that this will spike inflation, prompting our sophisticated economists with the Bank of Canada to hike interest rates, driving up the costs for all of us to borrow money.  Just when we need it most.

However, when the talking heads with mainstream media tell us that these things are unavoidable (eg. Libyan uprisings mean we pay more for food), we owe it to ourselves to call BULLSHIT.

What astounds me is that we live in a land that is filled with political opportunists, but NO SINGLE PARTY has jumped on the opportunity to demand price parity or price improvements for Canadians.

Until then, do yourself a favour and avoid buying from the companies that are behind these lies.  Loblaws and Weston (which is owned by Loblaws) seem to be the central forces behind this big push to increase prices.