by [JT] » Tue Jul 12, 2011 1:44 am
I remember when a meal at mcdonalds costed less than $5. Now it's like what, close to $8? Prices will never lower with or without hst in the long run because of inflation. However, the rise in prices could be reduced.
The only way that I can see that would give us a good indicator of whether prices actually lowered is to look at the consumer price index changes from when HST was implemented until now. Then adjust it for inflation and maybe compare this with other historical data.... buuuuuut I cannot find CPI figures adjusted for inflation
Also, I think Gordon mentioned this before, but it takes a whillllllllle for businesses to pass down savings to consumers. When the Maritimes introduced HST it took many industries/companies 6 years to pass on savings.