The Dismal Science
Barry Nabatian of Market Research Corp. — whoever they are — has a theory:
The HST and people re-entering the job market are to blame for a sudden jump in unemployment in Ottawa and Ontario last month, an economic analyst says.The psychological effect of the new tax — which went into effect July 1 — makes people reluctant to spend as much money because they see yet another drain on their finances, said Barry Nabatian, general manager of Market Research Corp.
In light of the still-fragile economy, “the timing couldn’t have been worse,” he added.
The unemployment rate rose by 0.4% to 6.3% in Ottawa according to July job data released by Statistics Canada on Friday. Though Ottawa actually gained 500 jobs, another 2,800 people starting looking for work.
Slight problem: the HST also came into effect in British Columbia on July 1st.
That would be the same British Columbia which posted job gains in July. Perhaps British Columbians are made of psychologically sterner stuff.
posted by WJM @ 11:34 PM
2 Comments:
It is astonishing the number of pollsters who make claims not supported by facts, including their own polling.
Paging Don Mills.
Times have changed, we're emerging from the biggest global economic downturn in 80 years. The two sales tax system using the old PST and GST puts our businesses at a competitive disadvantage.
Experts agree. Economists, businesses and investors say that the HST is the most important thing we can do to strengthen Ontario's economy. Economist Jack Mintz says that our tax cuts and the HST will bring $47 billion in new investment to Ontario and create 600,000 new jobs. It would also help protect those things – like our schools and hospitals – that make Ontario a better place to live.
In more than 140 countries and four other provinces, value-added sales tax like the HST is already a fact of life. It is modern, efficient and necessary to compete in today's changing world.
We have a choice. We can refuse to fix what's broken and resign ourselves to the idea that Ontario would be less competitive. Or we can embrace change and do what it takes to build a stronger Ontario. In Ontario we've made our choice. We're taking a tax system that was made for a bygone era and rebuilding it to help secure Ontario's prosperous future.
For more information visit www.ontario.ca/taxchange
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