Quote:
Originally Posted by sdimedru
I have no background in economics so won't argue with those with the background, but I can't find myself agreeing with the bolded?
I can get the concept that, for example, my household had $500 to spend per month on entertainment, a new arena doesn't change that.
But I'm suggesting that I was only spending $200 of that prior to Rogers Place, and now it may be closer to $400 and centralized around the Arena... doesn't that register as a positive impact as a result of the new Arena?
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It depends. Were you saving the excess $300 previously or just spending it on something else? If the overall spend is the same, the net economic impact to Edmonton is approximately equal whether you spend that money on entertainment, groceries, restaurants, clothes, etc. If you are now saving less, then yes, economic activity has increased in Edmonton, but at the cost of your future savings total (and there are other indirect impacts re: investing/capital gains/dividends/future spending/etc).
The only way Edmonton really comes out ahead from an individual spending perspective is if a lot of out of towners now come into the city, and the only way Alberta gains is if out of province visitors increase. Otherwise, spending is spending whatever it's on... though Alberta having no PST changes the normal "calculation" that could be done in other regions.