Monday, September 13, 2010

My New Economic Plan Pt 1: Get small before you get low

First, a wee diversionary tactic.

Have you seen Get Low at the movies? You should.

It’s a new flick starring Robert Duvall, Sissie Spacek and a wry, lovable Bill Murray that spins a good, inspirational yarn.

I say inspirational because the movie is “spun out of equal parts folk tale, fable and real-life legend about the mysterious, 1930s Tennessee hermit who famously threw his own rollicking funeral party... while he was still alive” (so says the The Internet Movie Database) and I came away thinking we should all throw our own party before we get low, i.e., go underground.

[Link to image source]

But before we throw our party we should get small and live according to a new economic plan... so we can actually afford the party!

Yes, times are tough but they’re likely to get tougher.

According to a recent report, “August was a tough month for London area job-seekers with unemployment nudging up to 8.3%...” (Sept. 11, The London Free Press)

The unemployment rate was up in 4 other provinces as well (down in 3) as Canada’s jobless rate rose from 8% to 8.1% overall.

“Douglas Porter, deputy chief economist with BMO Capital Markets said Ontario’s industrial heartland is being hit by the most recent slowdown in the American economy.”

That should come as no surprise, really. In an earlier post I mentioned that Ontario’s economic growth is 80.8% reliant on US growth. When the US rolls over we get flattened.

News like the following, i.e., “Canada’s trade deficit (i.e., we imported a lot more than we exported) soared due to a slowdown in exports to the United States,” may soon become the norm because the US is in for a long , hard struggle.

It’s not just lower exports to the US we have to worry about here in Deforest City (or Ontario or Canada).

Please click here to read My New Economic Plan Pt 2.


We’ve heard or read about lower exports to the US.

We’ve heard about a possible double recession.

Tomorrow - another reason to get small before you get low.


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