why don't the prices of computer stuff go down in europe...
- Thread starter thornc
- Start date
Thornc, when the Euro goes up in value, that makes their prices higher on the world market. Why do you think that their products aren't selling well on the market and their tourism industry is hurting?
Europe has high prices on their products because of their vast social welfare programs.
If you were a businessman and had to pay your employees 5 weeks paid vacation per year plus 11 days statutory holidays, how aggressive could you be in your pricing?
How motivated do you think your employees will be to come to work when they know that the state takes up to 60% of their wages in taxes to pay for these social welfare programs?
Take a look around your home and see how many of your products are made in the EUtopia. I'll bet not many.
That is why their economy is in the toilet. Germany - Europe's biggest economy - has 12.6% unemployment...the highest since Adolf Hitler. France and Italy (the other 2 of the Big 3 in continental Western Europe) also have double digit unemployment rates.
Then take a look at the USA's unemployment rate (5.2%) and Alberta's unemployment rate. Tax cuts work! When people have more disposable income, they tend to spend it. When they don't have disposable income, they tend to hang onto their money.
Stealing money from hard-working productive people to give to non-productive people doesn't work.
Europe has high prices on their products because of their vast social welfare programs.
If you were a businessman and had to pay your employees 5 weeks paid vacation per year plus 11 days statutory holidays, how aggressive could you be in your pricing?
How motivated do you think your employees will be to come to work when they know that the state takes up to 60% of their wages in taxes to pay for these social welfare programs?
Take a look around your home and see how many of your products are made in the EUtopia. I'll bet not many.
That is why their economy is in the toilet. Germany - Europe's biggest economy - has 12.6% unemployment...the highest since Adolf Hitler. France and Italy (the other 2 of the Big 3 in continental Western Europe) also have double digit unemployment rates.
Then take a look at the USA's unemployment rate (5.2%) and Alberta's unemployment rate. Tax cuts work! When people have more disposable income, they tend to spend it. When they don't have disposable income, they tend to hang onto their money.
Stealing money from hard-working productive people to give to non-productive people doesn't work.
From here
I kept my word, so I expect the courtesy of you doing something similar.
I will not discuss political (or even economical issues) with you. Special these were you don't know/understand Europe's reality as well as I don't understand US or Canada's.
Originally posted by thornc Seriously Cleopatra, I will not discuss this issues with you anymore. You keep your opinion and I will keep mine, I won't try to change yours and you won't try to change mine! Deal?
I also promise to refrain to post anything on your posts about political issue!
I kept my word, so I expect the courtesy of you doing something similar.
I will not discuss political (or even economical issues) with you. Special these were you don't know/understand Europe's reality as well as I don't understand US or Canada's.
Thornc, if you don't want answers to your questions, then don't post questions.
It's really quite simple.
Oh, and I understand Europe's reality quite well. It's not rocket science to conclude that when your currency goes up in value, so do the products you sell on the world market. It is Econ 101.
It's really quite simple.
Oh, and I understand Europe's reality quite well. It's not rocket science to conclude that when your currency goes up in value, so do the products you sell on the world market. It is Econ 101.
LottoMagicZ4941
Member
Hopefully the USA never goes to a vat tax.
However a few more vacation days would be a plus.
Was listening to Greanspan yesterday and one of the issues on going to a consumption tax is that people have already paid tax on the income and if we switch to consumption that same money will get re-taxed.
However a few more vacation days would be a plus.
Was listening to Greanspan yesterday and one of the issues on going to a consumption tax is that people have already paid tax on the income and if we switch to consumption that same money will get re-taxed.
Case you didn't understood, your answers were not related to my question (which was almost rethoric...case you didn't notice it), your answer was just a short way to bring out another pointless discussion about politics on which noone will ever agree!cleopatra said:Thornc, if you don't want answers to your questions, then don't post questions.
It's really quite simple.
I wasn't talking about that reality...but let it be!
And last time I checked the some US states also have sale taxes, income taxes and social wellfare....
- European products are quite different from American ones, not just in terms of a different power supply module. They go through more rigorous certifications in order to comply with a larger number of cross border regulations. The cost of all that additional certification scrutiny is passed onto the consumer.
- Due to the multitude of different languages in Europe, each european country has to have its own local distribution office, with different staff and different lawyers, attuned to a different social and legal consumer infrastructure. The cost is passed on.
- Import duty fees and transportation charges are lower in the U.S. simply because of the sheer enormity of that market's voracious consumer appetite. Whereas in Europe the tendency is to reuse, rebuild, recycle, the American is a "discard and buy new" society. The turnover of product is much higher in the U.S., thus the much higher import numbers. Thus it's a simple case of "buy more save more".
There are of course some other not so obvious factors.
Oh, and by the way, when your currency goes up in value, your buying power increases proportionally and your resale cost of bought product decreases, because you have more product units to resell for the same bulk value. That's Econ-101.
Watch for the retail prices to equalize (between U.S. and Europe) over the next five to ten years.
- Due to the multitude of different languages in Europe, each european country has to have its own local distribution office, with different staff and different lawyers, attuned to a different social and legal consumer infrastructure. The cost is passed on.
- Import duty fees and transportation charges are lower in the U.S. simply because of the sheer enormity of that market's voracious consumer appetite. Whereas in Europe the tendency is to reuse, rebuild, recycle, the American is a "discard and buy new" society. The turnover of product is much higher in the U.S., thus the much higher import numbers. Thus it's a simple case of "buy more save more".
There are of course some other not so obvious factors.
Oh, and by the way, when your currency goes up in value, your buying power increases proportionally and your resale cost of bought product decreases, because you have more product units to resell for the same bulk value. That's Econ-101.
Watch for the retail prices to equalize (between U.S. and Europe) over the next five to ten years.
True. However when the largest economy in western continental Europe (Germany) exports $112 billion per year more than it imports, the high euro hurts.
The two other largest economies in western continental Europe (France and Italy) also export more than they import. Plus, France is the most visited country in the world and the high euro is hurting their tourism industry, as it now costs more to visit there.
And until Europe gets rid of its vast social welfare programs for its workers and its over-regulation by the governments, the chances of their prices equalizing to that of the US are slim. It costs more to operate a business in Europe. Germany and France are trying to introduce economic reform, but their population is resisting it. They got used to the perks and want them to continue...5 weeks holiday per year, 11 paid statutory holidays and 18 months (18 MONTHS!) of unemployment insurance benefits.
thornc wrote:
Er, yes they were. You asked a silly question and are now sulking when it was easily explained to you why European prices are high. Live and learn.
Peter wrote:
As a business owner, I prefer the GST to the old 13.5% FST. My costs and selling prices both dropped.
Good for me and my customers. Plus people get GST rebates; they didn't get FST rebates.
Plus the Free Trade Agreement got rid of all the duties on the products I import from the US, which made my costs and selling prices drop further.
I'm enjoying the $0.80 Canadian dollar now.
Much better than the $0.65 Canadian dollar
For me that is (since I import my products from the US). I understand, though, that a lower dollar is better overall for Canada since it exports more than it imports.
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In my opinion you answer is not the correct one.
And again you don't quite understand Europe as it is today, but I can understand that even we can't do it sometimes... the situation is that I don't have the time nor the mood to try to explain it!
Thanks for your comments and let's leave it a that.... and yes I do keep on learning!
cleopatra said:
True too. Or should I say "too true"?
While it is true that the european "time off", i.e. vacation, stat. holiday, sick leave and unemployment benefits are without a doubt very taxing on the infrastructure of that region's economy, it would definitely be nice to be on the receiving end of that equation.