Nice piece in the Financial Post today by Terence Corcoran, Flaherty should tackle his own price gougers, making some reflections on Jim Flaherty's announcement that he would meet with retailers to discuss why the price of goods hasn't come down lock-step with the rise in the dollar. Nice to have a conservative finance minister that has so little faith in the free market, that he must intervene at the slightest provocation (and I do mean slightest).
I have an idea for Jim Flaherty: want to see the market kick into gear? Remove the duty on goods consumers bring back into Canada upon leaving the country. No need to be away 48 hours for a $400 duty free (or 7 and $750). One day in the U.S., bring back as much consumer goods as you please (booze and cigarettes subject to the usual rules, of course). This would create competition with American retailers, forcing Canadian retailers to bring their prices more in line with American prices.
This way, you see, I could get up Saturday and say, Hey! Let's go shopping! Couple of hours later wee're in Buffalo, buy a big screen TV, 5.5 Surround sound system for it, a HDDVD, and a bunch of DVD's. Back at the border:
"How Long have you been out of the country?"
"Couple of Hours."
"Anything to declare?"
"Four-thousand-five-hundred and seventy-two dollars worth of goods."
"Any liquor or tobacco?"
"No."
"have a nice day, sir."
Jim Flaherty says he wants the markets to work for Canadians. That's how they would work, by adding competition, not by some busybody politicians harassing sellers.
And the big advantage is he could do it tomorrow, just issue an order in council, or whatever these guys do, and suspend the paying of consumer duties until a) Jan 1 b) Further notice. Simple, and would even be popular amongst us unwashed masses -er voters.
While we are on the subject, and speaking of upping the competition, and since the price differential in books seems to be one of the items that is really annoying people, how about eliminating those pesky Canadian ownership requirements to owning a large bookstore. Then we can get Borders/Barnes and Noble in here and give Chapters a run for their money. Problem being, I admit, this one would take a while. Unlike the issue with not paying duties, which could be implemented tomorrow.
So how about it Jim Flaherty, want to really fix the problem of consumer prices? or do you want to play big hero politician who interferes in the market, but solves nothing?
