I know somebody that does but that’s another story. And a brilliant one, if I do say so myself.
["Does somebody need a grave dug?"]
I call the HST a consumption tax with a warning bell around its neck. The more one consumes, the more one hears the bell.
Some government and business leaders may have felt that the HST would stimulate the economy, but it hasn’t yet done so.
And according to a recent article, “Canadian retail sales unexpectedly fell in July as the harmonized sales tax (HST) and cooling housing market dampened spending, in the latest sign the economic slowdown is filtering down to the consumer.” (Sept. 23, London Free Press)
["Soon I won't even be able to afford my smokes!"]
Our spending has dampened. We can hear that bell, eh!
According to this old economist (really, anybody with a wallet and three pieces of ID can be an economist), there are other reasons Canadian spending has dampened.
We’re becoming more aware, as citizens of one of the fairest lands in all the world, that costs and debts are going up all around us.
In other words, ‘Thing$ are still going North$$.’
Canada’s national debt will very likely surpass $600 billion in 2011.
US debt will surpass $14.5 trillion in 2011.
Levels of personal debt in Canada and the US are at unprecedented levels as well.
More public and private pension plans carry growing deficits than ever before. (Retire to Florida? Think Point Pelee instead.)
["Some folks will sink without savings"]
Way past over the top, says this old economist. It’s definitely time to rethink our economic plans.
The HST, which may have been meant as some kind of economic stimulus - by brighter minds than mine - is clearly seen as a broad consumption tax by struggling consumers in light of all the other ‘thing$ going north$$.’
Bad timing, eh. I don’t think we’ll ever stop hearing that bell.
And in my opinion, that’s a good thing too.
***
So, reduce spending, pay down debt, and save money for tough times ahead.
Or, ‘get small before you get low.’
.
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