Originally Posted by Natalie_ca
I think our Finance Minister should be getting involved and forcing companies to reduce the prices.
Short of introducing legislation that ties and limits the retail price to the standing of the dollar, there's not a whole lot that can be done at that level. And that's a dangerous thing to do, because it will mean constantly fluctuating prices in our market, assuming the dollar doesn't hold at one point forever. This isn't so much a huge problem for Wal-Mart, but my boyfriend's family's restaurant would have a hard time having to change prices based on their customers' buying power instead of their operating costs.
People are looking at this very narrowly and we might have some very real economic ramifications because of it. Firstly, shopping in the US to get better prices is really going detract from fourth quarter earnings of CDN businesses. That's the obvious. So now, they're losing money, which makes it harder to drop prices. I'm not saying it's right, just pointing that out. Also, keep in mind that some products, like books, were printed and priced before the dollar reached this level, so they may very well adjust soon (new releases anyway).
But lowering prices is easier said than done. Unless costs are cut across the board, it's difficult to keep a steady bottom line and trim in one area. I'd also like to point out a very real danger to small businesses. We're talking about significantly cutting prices, but has anyone considered what that would do to the operating budgets of small businesses? Everyone is screaming that their dollar is worth more, but nobody is suggesting we adjust the minimum wage. If price limits were tied to the dollar legislatively, we'd likely see small business decreasing their production levels or even folding due (in part) to staffing issues once they're bringing in less but still having to pay their employees at the same level.
I'm for price adjustment, just not for sudden sweeping adjustment. I think it should have been done gradually, but a sudden change would probably have some pretty serious consequences.
Just my two cents (which is worth just as much as you Yankees'