Why do we Pay More?

While it may have taken us awhile to get there, the Canadian dollar has been soaring past the American dollar for several years. And while that means that Canadians can enjoy things like great exchange rates at their bank, we still pay the same amount, if not more, on everything from our mortgages to our magazines. Remember when you used to see a Canadian and American price on the cover of a magazine? The Canadian price was always more, because the American dollar was worth more. Look at those same magazines today, and you’ll see that the Canadian price is still listed as more, even though our dollar has topped the U.S. dollar for years.
So why is this? Why are we still paying more? These are the questions that Canadians have been asking for years, although they’ve yet to get a straight answer. No one still really seems to know why, but that doesn’t mean the situation is hopeless. For the first time since the Canadian dollar has surpassed the U.S.’, someone is actually looking into it – and that someone is Jim Flaherty. Heading into a Conservative caucus meeting, the Finance Minister said that he’s sent a letter to the Senate Finance Committee asking them to look into it. The Committee has responded, saying that they agree to conduct a study to find out why there is still such a difference in prices across the border.
Jim Flaherty is undoubtedly hoping that the study will reveal that the problem lies within retailers’ pricing, and not the tariffs he’s imposed, which people have pointed to in the past as the reason to blame. And while the study may reveal what the problem is, it will probably still be some time before Canadians start seeing a real difference in the prices they pay, if we ever do. The study itself won’t begin until at least September 19, as that’s when Parliament will resume.