Archive for the 'economics' Category

GST Tax Reduction?

Wednesday, October 31st, 2007

So.. a 1% reduction in GST instead of passing the money on to the cities.

I guess this means a savings of $15 per month for me - 3 more mocha fraps (liquid cheeseburgers) - which really won’t affect my life. However, the $400 million or whatever that the city would have received from the 1% seems like it would make a difference.

Maybe I’m taking the $15 for granted. Would $15 make a difference to someone who is closer to the poverty line? Maybe. But someone closer to the poverty line likely has a higher dependence on social services than I do. So then the question becomes - is the $15 better utilized in social services funding or personal consumption?

For me, the extra $15 dollars really goes towards funding the TTC fare hikes. If they channeled 1% to social services, the TTC likely wouldn’t have to increase fares. So it’s a wash for me. But, I have the privilege of living close to the subway.

If I was in a lower income bracket, I would likely be living in a less accessible area, thus would be more reliant on TTC buses. As a result of the TTC budget crunch, I’m sure buses are less frequent, or even cancelled. So it’s a double whammy - increased fares, and decreased service.

This is just one example, by way of the TTC, but funding for social programs is important to everyone. I don’t like increasing taxes, but accept them if I agree with what they are used for. I HATE decreasing taxes, when we have so many gaps in funding.

Though, I don’t think it’s the lower income people asking for tax cuts. It seems like the rich people - you know, the ones with all the bling and gadgets, who don’t require social services but would rather have more bling - that want tax cuts.

Think about it objectively - how does the tax cut affect EVERYONE, not just you.

This is another reason I love living in Toronto - you see both ends of the spectrum, the ultra rich and the ultra poor, every day. It’s a constant reminder of what our city, province and country is made of.

bullfrog power vs toronto hydro - comparing the bills

Wednesday, May 9th, 2007

I got my first bullfrog bill a few weeks ago, and can now properly compare the charges. To compare apples with apples, I found a recent Toronto Hyrdo bill with EXACTLY the same kWh’s used. Here are the details…

bullfrog powerBullfrog Power: 873kWh’s used in the current bill, with the mystery adjustment (adjusted loss factor) the overall usage is 905.825kWh’s. The total bill is $152.96.

Toronto Hydro: 873kWh’s used, with the adjusted loss factor the overall usage is 905.825kWh’s. The total bill? $123.32.

Remember, much of your hyrdo bill is made up of delivery and administration charges, so let me identify these charges. The Bullfrog admin charges are $62.25. The Toronto Hydro admin charges are $66.21. I’m assuming bullfrog passes the admin charges back to Toronto Hydro to pay for poles and maintenance, so why would bullfrog’s be cheaper? Weird.
Toronto Hydro

Anyways, this leaves us with $49.03 in actual electricity charges for Toronto Hydro, and $82.05 in electricity charges for Bullfrog Power. The power is clearly more expensive, but I don’t see it in my overall bill because the other charges make up half the bill.

So, the power costs 67% more with bullfrog. However, because almost half the bill is made up of infrastructure charges, the actual bill is only 24% more. Not bad eh? A 24% increase (~$29 dollars) in my electricity bill for green power. Awesome. Totally worth it, and completely affordable. Who would miss $29 dollars over a 2-3 month period?

What I love about my bill is that it details the pollutants I pumped into the atmosphere as a result of the power I used. It reminds me that although it’s green power, there is always a price. Cool.

electric or natural gas heating?

Monday, April 2nd, 2007

Is electric heating better for the environment than gas heating? I’m thinking electricity is better, but I’m open to discussion. Here’s why I think it’s better…

  • Gas is a non-renewable fossil fuel right now. Electricity is not, provided it’s generated by low-impact means.
  • Both have a delivery infrastructure within the city, so they are relatively equal in that respect.
  • Unless there is a pipe from here to Alberta, gas is shipped here by something that burns fossil fuels. Electricity is generated locally.
  • I believe electricity is a more efficient method of heating water than natural gas is, so it makes sense to have an electric hot water heater, specifically a tankless hot water heater, which are more efficient than the tank type, and provide unlimited hot water. ;)
  • At the moment, gas is a more efficient (or at least cheaper) method of heating air than electricity is, according to this source (pdf).

So, if I wanted to heat water in my house using electricity, I can invest in a tankless hot water heater, which is becoming more reasonably priced each year. I looked into one a few years back when Home Depot first started carrying them, and it was a little pricey ($1500 or so), but it’s getting better. I will have to re-investigate.

If I wanted to heat my house with electricity, it would reduce CO2 emissions by 30% (compared to gas using conventional hydro), but cost me twice as much. Unfortunately, that money tree I planted in the backyard has yet to bloom, so this might not be an option (yet).

Awesome.

offshoring in your backyard

Friday, February 16th, 2007

In an interesting turn of events (which totally makes sense now that I think about it), businesses are considering off-shoring within the country. So, for example, a company based in Toronto would offshore to Sioux Lookout, Ontario - where the cost of living is lower, thus salaries are cheaper. This keeps companies happy by exploiting cheap labour, and people employed in smaller cities.

I would seriously consider a pay cut to live in a remote area for a few years. If anyone is actually reading this, I would relocate to the Northwest Territories, the Yukon or Newfoundland, so long as they have a decent net connection and Apple delivers hardware out there.

Checkout Rob’s post, it’s interesting.