By Ross Kentner
Give President Obama credit+?G??-?there isn+?G??G??t a day goes by that he fails to make a headline. More importantly, not a day that he doesn+?G??G??t advance his program to get America back on its feet. It+?G??G??s not surprising that we+?G??G??re comparing our politicians to the new President and feeling that the grass is greener on the other side of the border. Canada+?G??G??s problems are not as deep rooted as those in the States but a lost job north of the 49th Parallel is just as serious as one lost on the south side. Why is it taking so long to get anything done to stimulate sales and create jobs?
It+?G??G??s a fair question and I want to give a local politican full marks for a new idea to get around a fundamental bottleneck in Canada+?G??G??s economy. Jim Wilson, the Conservative member for Simcoe-Grey wants the McGuinty Government to lift the provincial sales tax on new cars and trucks for 90-days. Actually, this is an old idea, one that proved its value back in the recession of 1980 when a Conservative government did the very same thing.
Conditions today are much the same+?G??-?a surplus of new vehicles+?G??-?a surfeit of buyers. As then, there is pent up demand. Cars and trucks stand up better and last longer than they used to, but they still wear out. If all else were equal, more of the tire kickers out there would be buyers, but there+?G??G??s not enough credit. And probably most important+?G??-?not enough consumer confidence. People are a lot like lemmings. They want to do exactly what everybody else is doing when they+?G??G??re doing it! Or not buy when nobody else is buying!
Jim Wilson+?G??G??s idea is bang on because there have never been better deals on new wheels since the days when power brakes and power steering were options! The combination of no PST with the discounting going on now would be irresistible to
many potential buyers. Jim Wilson says that would get inventory moving again, which is going to be the key to re-establishing factory production.
It+?G??G??s certainly not rocket science. Stimulus packages take time to think out, pass and get working. A tax break can start the day after it+?G??G??s passed and can be boosting sales by the weekend. Instead of spending tax dollars, you just don+?G??G??t collect them in the first place. Actually, it+?G??G??s a no brainer and the McGuinty government should waste no time implementing it!