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Originally Posted by gars
The problem with your argument, is that all you can see is Businesses making money of the customers. You forget that Businesses need to compete to survive.
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I forgot nothing. The whole point of business IS to make money off consumers, otherwise they would be called charities. Your basis of competition is based on money and dollars only, but level of service, quality of product, these are all things that need to be factored into the competition equation.
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Do you know how Walmart has expanded so much across the states? It's because they are able to offer low prices which takes out competition. If they can lower prices, they will because the guy next door won't be able to offer the same price. If through HST - they are able to lower prices even further, they will. I'm not going to get into an argument about big box corporations, or how Walmart underpays their employees - but they're the biggest example of how lower prices benefits the companies.
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Your example is as one sided as mine. You are saying Walmart lowers their prices to knock competition out because they know that the competition cannot match their pricing (unlevel playing field).
With HST, if Walmart can reduce the price of a product 2%, so can Superstore/Safeway/Whole Foods/Capers/Canadian Tire, so MAYBE there are savings to be seen by the consumer. But does this guarantee that they will? No way. Why would Walmart lower their pricing when they know everyone else can do they same thing, what incentive is there to decrease their profit margin when everybody else can offer the same price decrease?