Blame it on the math department
I have to be impressed with the blatant ability of the Canadian retailer to protect a vested position. This afternoon, Rex invited callers to bear witness. An opportunity to let others know how things have changed in the new monetary model known as “looney at par”. The program turned out as a reaffirmation of my personal experience. The only profit from a stronger dollar is a stronger profit margin.
Now, there were many arguments. We live in an economy where the supply line rules. It takes time for change to trickle down to the bottom of the pyramid (that’s you and me). There are rules that prohibit price change. It’s hard for a business to change sticker prices; they would have to change those stickers if the parity disappeared. And on and on and on. A litany, in the long, name all the saints and their cousins variety, that would do credit to the oldest, slowest, most incense clouded Friday on record.
Let’s look at the other side of the equation, for that’s where the problem lies. We teach ALL of our math students about equations, and variables, and constants. We also teach that if a variable changes, so (by mathematical law) must the answer. Alter any one variable, and the value of the equation must change as well.
Let’s try a simple one: if x+1=2, then x=1. So far so good. Hence, if x+1=3, then x=2. We all agree. Now, try the new economy. If the CDN dollar is worth .65 US dollar, then a CDN dollar will buy an American hamburger worth .65 US.
Remember, this is about variables, so if that same CDN dollar is worth, oh 1.00 US dollars, then a CDN dollar should buy an American hamburger worth 1.00 US. Wait, my math must be faulty. You see, everything I buy still costs me more than it should.
Car – worth $41,000 CDN or 27,000 US
Book – $9.99 CDN or 7.99 US
Magazine subscription – 32 US or 25 US (I know, but the magazine people require payment in US currency, no matter what. Something to do with postage…)
And on and on and on. The reality is that there has been no visible gain for me (and lots of visible gain for the retailer). The only ones getting benefit are those selling stuff to me. I am a small cog in a big gear assembly, but economy of scale applies… someone other than you or me has found a way to gain. Call it sticker shock. Call it inability to alter stickers. Call it fraudulent. I do. Don’t be afraid; call it fraud.
And so we listened, collectively, to two hours of consumers saying “It ain’t right, Joe”, and retailers saying “Blame it on someone else; I’m just a poor businessman, trying to make a fair day’s wage”. No shame, no guilt, just pure opportunity. And lest we forget, the tax man is laughing all the way to the largest surplus seen in recent times. It chokes me up.
