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COLUMN: Shopping locally stimulates the economy – BCLocalNews

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By Tom Thomson

For many of us, holiday shopping lists still linger as we hit the streets hoping to stretch our spending as far as possible. Keep your shopping close to home and buy locally where a purchase at a local store or restaurant has the greatest community impact.

The reasons for shopping locally can easily be forgotten in a cyber shopping world but the fact is, keeping money circulating in our greater community is an important consumer decision for us, and one that needs to be top of mind, something the Chamber of Commerce has been working on over the years

All these folks — shopkeepers, restaurateurs, retailers, service providers, professionals and more — live and work in our region and they’re already spending their dollars in our community or region. They pay for salaries, supplies, rent, taxes, utilities and so on. They also stay in the community and buy their groceries, clothe their kids and rely on local services such as hairdressers and accountants. The effects are far-reaching and important.

The fourth quarter of the year is significant for businesses but for retail it is critical. This is when they make a substantial part of their annual revenue, counting on a surplus in the last final months to keep the doors open in the cold months of January and February. Now is the time to show your support for the work they do.

We live in the age of online shopping. Most everything we might need is available with a few keystrokes. The lure of Amazon, with a multitude of merchandise options and free delivery beckons. No traffic, no parking hassles, no crowds. Why, then, would we choose to shop locally?

There is no real methodology keeping track of how much money flows out of the area from shopping excursions, or online purchases, but you can safely say it is in the millions of dollars. Those dollars would be put to much better use keeping our own regional economy vibrant, creating or at the very least retaining jobs!

Local shops, restaurants, and services create jobs that keep the economy stable, and the property taxes, sales taxes and payroll taxes help support services we have come to expect and what many deem essential to our community. When was the last time Amazon sponsored your local soccer team, or supported Mural Fest or a performance at the Capitol Theatre?

Shopping locally is the most basic form of trickle-down economics — and we all stand to gain. Successful businesses give thousands of dollars a year to much-needed local charities. A thriving business sector contributes to the coffers of the municipality through taxes, helping to fund all manner of public works, from parks to sidewalks, that enhance the quality of life for everyone.

As homeowners, we have watched our monthly bills increase dramatically through the years. For businesses, take those expenses, double them, or even more, add in payroll costs and other business expenses and you see the pressures.

Costs of leases have been squeezed upwards as landlords pass along increases in municipal, regional, and provincial business levies. Water, sewer, and hydro costs continue a steep upward curve for homeowners, but for businesses, the local commercial tax multiplier is over two times what residential tax increases have been, and utility rates for water, sewer, hydro etc. are also at a fixed rate higher than personal residences.

In some ways, I get it. By shopping online, you are just trying to get the best deal, find a greater selection and keep the costs lower for you and your family, but at what cost to our community?

When you shop in our region, you’ll find our local businesses offer a great selection with competitive pricing and quality that’s second-to-none, local experts with product knowledge you won’t find online, plus home-grown customer service and easy return policies.

In addition to the vital economy we all want, there are other benefits to shopping locally. For example, it is true that most business owners employ an array of supporting services by buying locally themselves. They hire architects, designers, cabinet shops, sign makers and building contractors/developers for construction and local accountants, insurance brokers, computer consultants, and attorneys to help run it.

Local owners, typically having invested much of their life savings in their businesses, have a natural interest in the community’s long-term health.

As a community we should continue to Think Local First so shopping locally is our first choice. We have wonderful retail, accommodation, dining, and service providers in the Nelson area. If you find what you want locally, if the price is competitive and the quality meets your needs, your decision should be easy: Buy it here!

Tom Thomson is the executive director of the Nelson and District Chamber of Commerce

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Economy

Removing domestic trade barriers could boost productivity, add $200 billion to economy annually: CFIB – Financial Post

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Removing domestic trade barriers could boost productivity, add $200 billion to economy annually: CFIB  Financial Post

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Economy

Here is Trump economy: Slower growth, higher prices and a bigger national debt

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If Donald Trump is re-elected president of the United States in November, Americans can expect higher inflation, slower economic growth and a larger national debt, according to economists.

Trump’s economic agenda for a second term in office includes raising tariffs on imports, cutting taxes and deporting millions of undocumented migrants.

“Inflation will be the main impact” of a second Trump presidency, Bernard Yaros, lead US economist at Oxford Economics, told Al Jazeera.

“That’s ultimately the biggest risk. If Trump is president, tariffs are going up for sure. The question is how high do they go and how widespread are they,” Yaros said.

Trump has proposed imposing a 10 percent across-the-board tariff on all imported goods and levies of 60 percent or higher on Chinese imports.

During Trump’s first term in office from 2017 to 2021, his administration introduced tariff increases that at their peak affected about 10 percent of imports, mostly goods from China, Moody’s Analytics said in a report released in June.

Those levies nonetheless inflicted “measurable economic damage”, particularly to the agriculture, manufacturing and transportation sectors, according to the report.

“A tariff increase covering nearly all goods imports, as Trump recently proposed, goes far beyond any previous action,” Moody’s Analytics said in its report.

Businesses typically pass higher tariffs on to their customers, raising prices for consumers. They could also affect businesses’ decisions about how and where to invest.

“There are three main tenets of Trump’s campaign, and they all point in the same inflationary direction,” Matt Colyar, assistant director at Moody’s Analytics, told Al Jazeera.

“We didn’t even think of including retaliatory tariffs in our modelling because who knows how widespread and what form the tit-for-tat model could involve,” Colyar added.

‘Recession becomes a serious threat’

When the US opened its borders after the COVID-19 pandemic, the inflow of immigrants helped to ease labour shortages in a range of industries such as construction, manufacturing, leisure and hospitality.

The recovery of the labour market in turn helped to bring down inflation from its mid-2022 peak of 9.1 percent.

Trump has not only proposed the mass deportation of 15 million to 20 million undocumented migrants but also restricting the inflow of visa-holding migrant workers too.

That, along with a wave of retiring Baby Boomers – an estimated 10,000 of whom are exiting the workforce every day – would put pressure on wages as it did during the pandemic, a trend that only recently started to ease.

“We can assume he will throw enough sand into the gears of the immigration process so you have meaningfully less immigration, which is inflationary,” Yaros said.

Since labour costs and inflation are two important measures that the US Federal Reserve weighs when setting its benchmark interest rate, the central bank could announce further rate hikes, or at least wait longer to cut rates.

That would make recession a “serious threat once again”, according to Moody’s.

Adding to those inflationary concerns are Trump’s proposals to extend his 2017 tax cuts and further lower the corporate tax rate from 21 percent to 20 percent.

While Trump’s proposed tariff hikes would offset some lost revenue, they would not make up the shortfall entirely.

According to Moody’s, the US government would generate $1.7 trillion in revenue from Trump’s tariffs while his tax cuts would cost $3.4 trillion.

Yaros said government spending is also likely to rise as Republicans seek bigger defence budgets and Democrats push for greater social expenditures, further stoking inflation.

If President Joe Biden is re-elected, economists expect no philosophical change in his approach to import taxes. They think he will continue to use targeted tariff increases, much like the recently announced 100 percent tariffs on Chinese electric vehicles and solar panels, to help US companies compete with government-supported Chinese firms.

With Trump’s tax cuts set to expire in 2025, a second Biden term would see some of those cuts extended, but not all, Colyar said. Primarily, the tax cuts to higher earners like those making more than $400,000 a year would expire.

Although Biden has said he would hike corporate taxes from 21 percent to 28 percent, given the divided Congress, it is unlikely he would be able to push that through.

The contrasting economic visions of the two presidential candidates have created unwelcome uncertainty for businesses, Colyar said.

“Firms and investors are having a hard time staying on top of [their plans] given the two different ways the US elections could go,” Colyar said.

“In my entire tenure, geopolitical risk has never been such an important consideration as it is today,” he added.

 

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Economy

China Stainless Steel Mogul Fights to Avoid a Second Collapse

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Chinese metal tycoon Dai Guofang’s first steel empire was brought down by a government campaign to rein in market exuberance, tax evasion accusations and a spell behind bars. Two decades on, he’s once again fighting for survival.

A one-time scrap-metal collector, he built and rebuilt a fortune as China boomed. Now with the economy cooling, Dai faces a debt crisis that threatens the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry Co., along with plants held by his wife and son. Its demise would send ripples through the country’s vast manufacturing sector and the embattled global nickel market.

 

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