High Prices in Canada sends Canadians South of the Border to do their Shopping

Posted by PITHOCRATES - August 18th, 2012

Week in Review

The Canadians are running south of the border for a better deal.  Much to the chagrin of local businesses stuck on the wrong side of the border with their higher costs (see Canadians outraged at attack on cross-border shoppers posted 8/15/2012 on 24 HOURS).

Annoyed at parking problems and long lineups at the stateside Costco, some residents there have set up a Facebook page calling for American-only hours when they can shop Canadian-free…

A Vancouver man who runs a website offering comparison prices, said lower prices and parity in the dollar still sends many bargain hunters south of the border. Cross-border shopping has also likely been spurred by Ottawa’s June increase on the amount Canadians can spend without paying duty (although day-trips are excluded…)

“We shop regularly in the states, especially for groceries. I can advise that organic goods are pretty much the same cost as regular goods,” said crossbordershopping webmaster Henry Tenby. “On average, you’re looking at saving about 50 per cent in terms of groceries…”

Shafiq Jamal of the Retail Council of Canada said local businesses are suffering and urged Canadians to keep their dollars at home.

A 50% savings on groceries when the exchange rate between Canadian and U.S dollars is almost 1 for 1?  That doesn’t leave much for the price difference between Canada and the U.S.  Other than taxes.  If the same food is 50% cheaper south of the border there is a reason for that.  Higher property taxes?  Higher business taxes?   A value added tax (VAT)?  Import tariffs?  A national health care tax?  A combination of all of the above?  It’s something.  And whatever it is the Canadian people don’t like it.  As they express their dislike by going south of the border to buy things they feel are more fairly priced.

There is nothing more irritating than having a Canadian friend that constantly badmouths the U.S. while he and most Canadians living near the border high-tail it south to do their shopping.  For they love their country.  But not enough to shop in it.

Canada is a great country.  Sired like the U.S. by a great country.  Britain.  But Britain is close to Europe.  And their social democracies.  And that contagion has infected her.  And it has drifted across the Atlantic to infect Canada.  Even the U.S.  Big government nanny state spending.  That requires a lot of taxation to support.  And forces people south of the border.  But that may not last.  For as the Americans catch up to the Canadians and the British nanny states their taxes will rise bringing parity to prices of their consumer goods.  Which is the only way to fix the problems in a social democracy.  By bringing other countries down to their level of economic misery.  For to have socialism succeed you can’t let anyone escape its oppressive utopia.

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