Money Minute: Viewers respond to Canada-U.S. price gap

A few years ago, while on a boys weekend in Ann Arbor to catch a University of Michigan football game, a number of us stopped in at the nearest Walgreens to stock up for the pre-game tailgating bash. They bought some Bud. Being an aesthete, I grabbed a bottle of Smoking Loon, a nice Californian Cabernet Sauvignon that sells for roughly $15 in Ontario. I believe it was US$7.95 that morning. (Some of the details of the day remain fuzzy).

That trip brought home a couple of points. The first being that you know you’re no longer in Canada when you can pick up your favourite red at a drug store before 9 a.m. And you’re definitely no longer home when you’re about to go enjoy it in a parking lot with some 107,000 others before a college football game.

Variations on both those points emerged in your responses to a recent Money Minute episode titled the ‘5 items that will cost you much less in the U.S.’. We compared food, cars, clothes, books, gadgets, housing and booze and in every instance, we discovered, once again, that we’re paying more than our southern neighbours; often much more.

And then, as always, we asked for your take. The feedback was both illuminating and appreciated. And generally speaking, opinions fell into three camps.

The first, most definitely, focused on additional cases of egregious price differences.

’32 Ford offered up not a car example, ironically, but an example of a Sears water softener that costs $990 in Canada, but which for US$530 across the border.

Hung wrote that $18 for ’60-pounder’ of Smiroff Vodka was “more than enough to entice me across the border.” The same bottle costs north of $50 here. Hung’s comment received 18 thumbs up.

Robert wrote he shopped in the U.S. this week, and kept track of his saving, writing that “Last year I saved an average of $62.17 per week. Full tank of gas, Lactaid pills made in Canada 65% cheaper in US, Butter, Lactose free milk and Yogurt, Ice cream, turkey, some sea foods, building products for my home (up to 70% better), snow tires (60%), running shoes ($165 in Canada - $29 in US)" etc. Better prices, better service and bonuses for being a frequent shopper

Adding to Robert’s list, JustMyOpinion offered: "I'm looking forward to my bi-annual trip to the US. Some price differences that I really notice - I can purchase in the US a gallon of milk for $2.49, eggs .99/dozen, shredded cheese $2.50/8 ounces, and cereal is so much less. Last trip we were able to get Bran Buds on sale for $2.49 a box, in Canada the same size box goes on sale for $4.99. Even dollar store items are less. Think about it why are we paying $1.25 or more at the dollar stores, plus in Ontario 13% sales tax, for an item that can be purchased for only a dollar, plus state sales tax. I can easily save .35-.50 or more, per an item. I save big time by purchasing my vitamins in the US. I can get the same brands, as I would in Canada, and save the sales tax. In some states vitamins are tax-exempt because they are classed as food. It helps to know what the Canadian prices are when you are shopping in the US. Another really big price difference is the cost of over-the-counter medications. At Costco I can purchase a year's supply of my allergy medication for half what a 72ct is here."

Going against the grain, and good for him, was Ryan, who noted:
“Gibson guitars are a bit cheaper in Canada but made in [the] USA. Go figure.”

A second set of comments acknowledged the price gaps, yet felt it was worth it, considering the benefits of being Canadian, or at least living here.

Ah wrote that it’s “The price we pay for our freedom, at least we are not forced to own a gun here and have to watch our backs every day or are hated world wide. Gladly pay more to be a Canadian any day.” Saying Americans are “hated worldwide” is a little harsh, to be sure, though Ah is not alone in his views.

Max attributed the cost differences to the fact Canadians “pay more to carry the country's healthcare. It’s the same for Europe.” It’s unclear whether he thinks that’s a good or bad thing.

Jim G clearly doesn’t, asking: “Do people want the same American health care to?”

Snowman wrote that the situation “used to upset me until I noticed that most retail employees in the US live in poverty. I don't mind paying a little extra to live in a country that doesn't need gated communities and guns to protect themselves from desperate poor people.”

A third group endeavoured to explain why the cost differences exist.

Dangermanmi6 wrote: “Labour costs are higher in Canada than in the US. The average minimum wage in Canada is about $10 whilst the average in the US is around half of that or $5/hour. Then we have the privilege of having to pay for official bilingualism, which tacks on to the cost of everything.” As of Friday, Dangermanmi6 has so far received one thumbs-up and five thumbs-down for that one.

Iplaymusicsoftly didn’t go easy when he or she weighed in, writing that it’s “Because our Government does NOTHING about gouging by businesses, and actively CREATES some of these price differences itself! Why is Alcohol so much more expensive? Government TAXES and TARIFFS.”

And the last word to C’Est La Vie, who suggested, “it's because we put up no resistance to being robbed.” Asking, “How do you think we got the moniker we're so nice and polite?”