Quote:
Originally Posted by elkhunter11
So do you attribute the changes you made to the carbon tax, or to the high inflation and high interest rates? I realize that the carbon tax contributes to both, but it is not the largest factor.
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All of the above, and more; well, not high interest rates for us because we have no debt.
The carbon tax is a key factor as it applies to literally everything. So in the supply chain of goods and services there are multiple 'layers' of the carbon tax applied. And the GST (HST here in Ontario) is also added to the carbon tax. So, for example, the carbon tax on my last natural gas bill was approximately $30.00, plus the HST at 13% so that is another $3.90.
Thus the carbon tax adds significantly to the cost of living all across the board. I can just imagine what the cost will be when it is $170.00 per tonne (and Trudeau's sidekick Guilbault hinted at it potentially going much higher if the libs continue 'governing').
High inflation is being driven by a lot of factors (just one is the carbon tax). But I am old enough to consider today's 'high inflation' to be pretty low! I recall double digit inflation and mortgage rates of 20 plus %. We were young then, just starting with a family, me starting a business, etc. and still we were able to live more comfortably than now. Our first (1978) house mortgage was at 10 1/4 % and we thought that was pretty good.
The cost of everything has gone up due to the expenses of producing and selling goods and services has also gone up - supplies, material, wages (which need to go up to combat inflation so people can survive - but that is a vicious cycle).
There is also the factor of declining productivity - which fuels inflation as well.
I also put a finger on 'greed' as a significant factor (i.e. housing prices, for no explainable reason, shot through the roof making owning an unaffordable reality for many young people (and us).
The last one I'll comment about is government mismanagement and horrendous waste of taxpayer money. That's also way out of control and adds significantly to the cost of living (taxpayers have to pay the interest on government debt too - and that comes before we even get any services for 'our' money!). I'm not sure this one can be reined in; I fear the whole herd of those horses has left the barn and is scattered far and wide.
Historically every great empire, country and society has fallen when taxation reaches a tipping point (around 50%) and we are about there. Even the RCMP has just released a report warning about unrest across the board if things don't change and this trajectory continues. I think we've already had 'the best of times' and the future doesn't look good here in Canada. I fear for my grandkids.