Tag Archives: economy

Economic mysteries

I don’t pretend to understand economics, but I’m beyond confused about what’s going on in the world? Countries are printing money like mad, but inflation is in check and so are interest rates.

It’s a seller’s market in real estate and price wars are happening. Family members got over asking price for a condo just north of Toronto. A friend of mine just got $100,000 over asking for a townhouse in Vancouver without inspection/conditions.

I understand why companies like Microsoft and Amazon have highly valued stocks, they have truly benefited from remote working/learning and lockdowns, but why is the whole stock market doing well, while retail companies and restaurants are laying off staff and imploding?

I’ve just tried a couple times to explain these patterns, but deleted each attempt. They are pure speculation on my part.

My fear? An eroding middle class and a world divided between the have’s and the have nots. Is this how it starts? It’s shocking how many people live paycheque to paycheque, and I’m not sure those numbers are getting better? Is this upside down and inflated economy going to last? And if it doesn’t, how will this effect the poor? The middle class?

I hope someone is paying attention and looking to the future, because I don’t think I’m the only one that sees this as a big, puzzling mystery.

Wanting to connect

This is one of the headlines that came across my news feed several times yesterday, “Ontario to maintain group size restrictions amid rising COVID-19 cases, crowded parks”

It seems that many people wanted to take advantage of the great weather and social distancing took a back seat to social gathering, despite an uptick of COVID-19 cases in southern Ontario.

This isn’t unusual behaviour, with similar things happening in parks and on beaches across North America. It isn’t something that bodes well when considering that economies are opening up and people are beginning to be exposed to more interactions with others. Social distancing needs to be something that we continue while things open up. So, why are people behaving like this?

We have a natural affinity to want to spend time with people and to be social… well, most people do, definitely not everyone. This is the typical overreaction we see with teenagers, when they get new freedoms and want to push the line. How many times have you heard a phrase like, “Give them an inch and they’ll take a mile.” Well, seems like this is as true for adults as it is for kids.

People want to connect. They want to congregate, they want to celebrate.

I know many people that have had to cancel travel plans. My own summer plans with my wife and two other couples is no longer going to happen. I know of two cancelled weddings, one was a local celebration and one was a destination wedding. These are big events to change! These are celebrated gatherings that will not happen for a while yet. This is tough to miss out on.

But it’s not as tough as not being able to visit another country to say goodbye to a loved one who is dying, it’s not as tough as knowing you are the one that spread a virus to someone that didn’t recover like you did. It’s not as tough as shutting down the economy a second time, when the curve isn’t flattened enough and there is a fear of hospitals being overwhelmed.

The economy has to be opened up. We need to be returning to some sense of normalcy, we need to create opportunities to connect with others in our communities, to work along side each other, and to do things that are more social than they have been. But we need to do so in recommended and respectful ways.

We need to accept some risk, but not be risky. We need to connect, and not crowd each other. We can’t wait for a vaccine, and we can’t stay shuttered in place indefinitely. We need to connect responsibly, and in ways recommend by experts. We can’t ignore the need to engage in our society, but we also can’t be reckless.

500 Billion Dollars

Imagine if the richest 100 people in the world each put aside 1 billion dollars to change the world. Think that’s too much? I just looked up the top 20 billionaires and they could each give away 15+ billion. Realistically, there could be 500 billion or 1/2 of a trillion dollars given away from the top 100 billionaires without changing their lives significantly.

What could that money be spent on?

Clean water, clean(er) energy, and food for the poorest 1/4 of the world. This would be a good start. Health & family planning would also be essential.

How different could our world be?

When I read articles like this: ‘Eye-Popping’: Analysis Shows Top 1% Gained $21 Trillion in Wealth Since 1989 While Bottom Half Lost $900 Billion

I wonder how these billionaires can imagine that their continued gains can benefit anyone, including themselves? At what point do gains like this have diminishing returns? At what point does compassion replace greed? At what point does social conscience take precedence over financial profit?

I don’t pretend to have the answers as to how to do this in a way that is equitable and helps people thrive, but with that much money, people smarter than me could be hired. There needs to be a redistribution or redirection of wealth to make our world more equitable, and more livable for those that need it most.

11 years ago, George W. Bush bailed out banks for 700 billion dollars. Since then, those banks have made the rich richer. What if the richest people in the world were to bail out the poorest? How many lives would be meaningfully changed for the better? What impact would that have on the overall well-being of humanity? The world needs another bailout. The richest people in the world have the means to provide it.

Image the possibilities!