Does a hobby that generate tangible goods for self-consumption a harm to the economy?

[fbaillargeon]

As a homebrewer, I was wondering about the economics of it all.

I drink around 3 pints a week. So that amounts to 1.5l give or less.

Bear in mind that here, ingredients are considered food here, so are tax free.

In my province, you pay tax on beer and you add sales taxes, that giving the state of around 3.60$ per week in revenues in my case.

I counted it just for kicks, for the province as a whole, if everyone homebrewed, you would cut 700 milion $ to the provincial budget.

And I have to admit, beer is a pretty good barter currency. It's sealed, keeps for a long time, is easy to carry and you know, inebriation is really popular and stuff..

Say for a computer repair job or a lawn mowed or something.

So am I harming society by depriving them of a global income and sharing beer with friends ?

 

[nursedude]

No you are not... You are directly stimulating your local economy! By trading in beer you free up your recipient to spend cash on other commodities... Tax revenue would be used, but the majority of the population would much rarer just pay the taxes and drink their beer without the trouble! Free markets thrive on that kind of system!

Coming from a beer trading Nurse and economics major.

 

[Stauffbier]

You're either spending money on beer or the ingredients to make beer. Either way, you're spending money! It's going to trickle down one way or another. Chances are you spend even more money now on beer related goods than you did before you discovered homebrewing..... Tax money doesn't help the economy as much as the money earned by private enterprise, so I wouldn't be too concerned with buying things that are tax free...

 

[fbaillargeon]

You're either spending money on beer or the ingredients to make beer. Either way, you're spending money!

The thing is, now that dough is going in my savings account, does it still benefit the local economy then?

 

[philjohnwilliams]

I wouldn't worry about depriving the government of tax revenue for two reasons. First is that knowing the governments we tend to have in this province, they would probably waste the money anyway, and second being that I am sure they will find a way to tax homebrew as well in the not too distant future.

 

[Stauffbier]

The thing is, now that dough is going in my savings account, does it still benefit the local economy then?

I guess you're one of the lucky ones if you're putting money in your savings account as a result of starting homebrewing. I spend a lot more on "beer" as a homebrewer than I did when I was just buying 12 packs of BMC before I started brewing.

I am sure they will find a way to tax homebrew as well in the not too distant future.

I was thinking about this today, and I think it's a genuine concern now that the hobby is growing so rapidly.

 

[fbaillargeon]

I was thinking about this today, and I think it's a genuine concern now that the hobby is growing so rapidly.

I wonder how, since usually water comes from the tap, and a same amount of grain could yield widely different amounts of beer according to specific gravity of said beer.

I don't think you could charge people by the volume then, unless it's something you would have to write up on your tax declaration annualy or something.

You also have to keep in mind that malted grain themselves could seldom be taxed, as they are a food product used in other uses beyond beer and fermented beverages (animal meal, confectionaries, malt syrup etc..)

 

[philjohnwilliams]

I wonder how, since usually water comes from the tap, and a same amount of grain could yield widely different amounts of beer according to specific gravity of said beer.

I don't think you could charge people by the volume then, unless it's something you would have to write up on your tax declaration annualy or something.

You also have to keep in mind that malted grain themselves could seldom be taxed, as they are a food product used in other uses beyond beer and fermented beverages (animal meal, confectionaries, malt syrup etc..)

Perhaps we in Quebec will be required to purchase a permit from the SAQ to be allowed to homebrew.

In reality, I don't see this happening, but you never know wht stupid things governments will do.

 

[Stauffbier]

I would expect it to be taxing the ingredients to an exteme point like they do with alcohol sales and tobacco. Even perhaps charging licensing fees or larger taxes for suppliers of said goods.. I don't really see the "permit" thing happening either, but in this day and age you never know. You might be required to carry a "homebrewers card" some day....

The worst thing a person can do is underestimate a governments ability to find ways to take more of your money!

 

[betarhoalphadelta]

Far more people make meals at home than homebrew beer. Everyone who makes meals at home is subject to the same economic analysis you just described. So should everyone stop making meals at home and go to restaurants instead for the good of "society"?

Reductio ad absurdum, sucka!

 

[fbaillargeon]

I would assume beer to be considered a luxury good however, but the restaurant comparison makes sense. Haven't tought about it in that light.

 

[ktblunden]

Far more people make meals at home than homebrew beer. Everyone who makes meals at home is subject to the same economic analysis you just described. So should everyone stop making meals at home and go to restaurants instead for the good of "society"?

Reductio ad absurdum, sucka!

That's a really good analogy. Likewise ingredients to cook your own food purchased at the store are not taxed where prepared foods in restaurants are (if your state/province has sales tax). The argument is moot until the homebrewers outnumber the in-store beer purchasers. Until then we represent a very small fraction of a percent of the population.

 

[emjay]

Far more people make meals at home than homebrew beer. Everyone who makes meals at home is subject to the same economic analysis you just described. So should everyone stop making meals at home and go to restaurants instead for the good of "society"?

Reductio ad absurdum, sucka!

Restaurants are often a sign of the health of an economy.

Does it hurt the economy? Depends on what you mean by hurt, but one could easily argue it does. But only because it is far less efficient to make your own than it is for a brewery to do so, and that inefficiency (ANY inefficiency) WILL actually be reflected in the GDP.

 

[amandabab]

So am I harming society by depriving them of a global income and sharing beer with friends ?

I think I found the silliest thing on the internet.