Three neighbours were complaining about the lack of recognition for their housework. They decided to hire each other. A would do laundry for B, B for C, and C for A. They paid each other $5,000 per month. They could use this income from self-employment to qualify for CPP retirement pensions. Better yet, they could claim their laundry supplies as a business expense.
The idea caught on across Canada. Soon, 10 million households were doing this. As businesses, they had to collect and remit GST.
The economists were happy because the GDP increased by $600 billion.
The government was happy because the extra $30 billion in GST balanced the budget without an increase in tax rates.
Whoever said we could not get rich by taking in each other’s laundry?
The sad part is that this idea is just as sound as the Trudeau and Notley government plans to stimulate the economy by running massive deficits. They will undoubtedly grow the GDP, but the increase in spending is no guarantee that there will be any increase in value. Contrary to what we are taught, the GDP measures only the cost of goods and services and not their individual or aggregate value.
Dominic Willott, St. Albert
