Thursday, 8 September 2011

Price desparities, tarrifs, and NAFTA, oh my

Don't look now. Somebody in the Canadian government is going to 'look into something' in regards to the price of consumer goods not reflecting the strength of the Canadian dollar against our neighbours. But thus far it's looking like tariffs might be part of the problem.

Which tariffs? Could they be referring to tariffs that were supposedly eliminated with the signing of NAFTA? Probably not. I have a theory here, and only time will tell if it is correct. You see, the U.S. stopped making tangible products a while back when they opted to sell their economy to China and India...

That's the whole theory: they don't manufacture anything, so we aren't importing their nothing they make under NAFTA. We get it from China just as the U.S. does. Tariffs are in place because we had no agreement with China to let them manufacture all our cheap crap in exchange for low or zero tariffs, so to enable (or attempt to enable) our manufacturers to better compete with cheap crap made in China, our cheap Chinese crap is 20% more expensive than American cheap Chinese crap give or take the exchange rate on the USD.

Whether or not the tariffs are actually helping our manufacturers is the real question, and I hope the answer is yes. Otherwise, I'd like a refund on all my cheap Chinese crap.


No comments:

Post a Comment