Costco

[Diane]

Hey Everyone,
Just saw a news report about the many Canadians crossing the border and shopping at the closest Costco store. And.....how many of us Americans don't like it. Are you kidding?? With our economy you would think we would love it. More products sold, more jobs etc. Apparently the worst complaint is we can't find enough parking spaces. Really!!!! However they did mention the high prices for items in Canada. Milk is around $7 or so and gas is around $5.00 a gallon. Wow! I wonder why so high. Well, I welcome y'all as I would do the exact same thing.

[Alastair]

Saw that myself Diane and part of the problem is that when the Canadian dollar was worth some 60 cents to the dollar prices were more expensive in Canada. However the Canadian dollar is now on par with the American dollar but prices for the same product in the USA are still some 25% more expensive in Canada. Canadian's now expect prices to be on par but it is still not happening and as some 90% of Canadians live within 100 miles of the American border it makes it quite easy to pop into the USA to shop.

Alastair

[Glesgalass]

Prices are cheaper in the US because they pay their workers less.....at least that's the way it seems to me. Friends of mine have a daughter just recently married to an American and living there. My friends say that their daughter and son in law are poorly paid by Australian standards but live OK because of the cheaper prices. You can't have it both ways.

Elda

[Rick]

Canadian gas prices are higher because of tax. Milk prices are higher because the supply is limited through production quotas and marketing board restrictions. These are public policy choices that governments have made over the years to reflect particular values. We may agree or disagree with those policies, but it's certainly difficult to fault consumers who seek out the best price. The one thing I have noticed tho' is that people do not always factor in transportation and other costs, i.e. they'll spend $10.00 on gas to save $5.00 on a purchase. That issue aside, free trade is free trade and I often wish I lived close enough to the border to participate.