The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Negatives and Positives Most media types are constantly negative about the economy throughout the world, certainly not only in Canada and the USA. The effect is a self-fulfilling prophecy, as people stop spending if they have money to spend and businesses feel the pinch and lay off workers. The effect on many countries is disastrous, especially those who depend on sectors such as tourism as a major source of income. Even Manitoba, with its balanced economy, has shown an increase in the number of unemployed and those collecting Employment Insurance. And we were given a scare as the US Congress showed signs of reverting back to the protectionism of the 1930s, which made a depression out of a recession as it caused other countries to put up trade barriers. Canada, America's largest trading partner, had a lot to lose as Congressional leaders spoke of restricting stimulus money to projects using made-in-America products, most notably iron and steel, which would severely harm the Canadian industry. Fortunately, due to the uproar from all US trading partners and words from the new President, Congress has backed off and now say they will honour all trade agreements. Don't think that there have not been some positives from depressions and recessions. The world's most popular board game, Monopoly, was patented in the 1930s, and, more recently, Microsoft started in 1975 after the recession of the 1970s. Businesses with low prices are doing well because people are seeking out bargains. Fast food giant McDonald's is opening up more more places as apparently a lot of executives who ate at high-end places are seeking cheaper meals. Some pastry bakers in Canada and the US are doing very well. Skinner Baking in Omaha, a 98-year-old family firm, saw its sales jump by 25 per cent in December and is hiring workers to keep up with the demand. A small bathroom renovation company, which specializes in reglazing old tubs, toilets and sinks at a fraction of the cost of replacements, saw its revenue in 2008 increase by 75 per cent over the previous year. Also, a company called Interstate Batteries, with 125 stores in the US, Canada and the Caribbean, saw its best profit ever in 2008 and opened up 43 new stores. Experts say that people are keeping their old vehicles and electronic products, and making them work. As well there are stories of furniture stores that specialize in cheap goods doing very well and planning to expand. Nevertheless, there are many businesses hurting, going under, and people losing their jobs. A story out of Florida says that luxury condos are empty, and business is off for those that cater to the wealthy, such as those who rent private jets, sell luxury cars and sell high-end clothing and goods. Neiman Marcus has cut 375 jobs, Macy's is closing 11 stores, casinos in Vegas and elsewhere are hurting and laying off workers, and so on. Even libraries are suffering, with many closing, restricting hours, and laying off staff due to the lack of money available from the cities, with dwindling tax dollars. The oldest public library in The US, founded by Benjamin Franklin in 1743 in Pennsylvania, is in danger of closing with just enough money for this year. Supporters have started fundraisers and called for donations. What about the affect on families who have lost their income? Readers will recall the father who lost his job and killed his entire family, including himself, and the fact that there has been a noticeable rise in mental trauma with a huge demand for therapists. A sad story of a family in Washington state describes a 50-year-old father who lost his software job. He has diabetes and high blood pressure and, with no health care or Employment Insurance, has had to cut back on his medication because of lack of money. The family lost their home and are now living in a 300 sq. ft. trailer in a friend's back yard. His wife finally found a temporary job but fears if it is lost the family, including two young sons, will have to separate. There are undoubtedly thousands of stories like this, although in Canada with Medicare, Employment Insurance and welfare, as well as available credit, we are much better off than those in other nations. Let's be positive and hope that the recession is short-lived and that the government's incentive plans work. Roger's Right Corner runs Wednesdays.
