Business

Saturday March 4, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday March 4, 2023

Interest rates have skyrocketed. So why hasn’t the rate on your savings account budged?

As anyone with a mortgage can attest, the cost to borrow money has gotten a lot more expensive this year. Banks were swift to pass on the rate hikes the Bank of Canada implemented as part of its aggressive campaign to tame inflation.

May 2, 2020

Variable rate home loans routinely top five per cent right now, more than twice what they were a year ago.

But the same can’t be said of savings accounts, which are not paying out much more today than they were a year ago, when the Bank of Canada’s lending rate was 0.25 per cent — its lowest level on record.

Canada’s five biggest banks offer a basic savings account with a rate paying between 0.01 and 0.035 per cent at the moment. So, if you are saving $1,000 for a year, you could earn a grand total of 10 to 35 cents in interest.

Even their so-called high-interest savings accounts that come with minimum balances and other stipulations all pay less than two per cent on an annualized basis.

CBC News reached out to Royal Bank, TD Bank, CIBC, Scotiabank and the Bank of Montreal this week, asking for an explanation as to why savings account rates seem to be slow to rise while lending rates do not, and all the responses were versions of a similar theme: that their rates are based on a variety of funding costs, and while rates on savings accounts are competitive, customers can often get higher rates with products such as GICs that lock in their money for a longer term.

May 13, 2010

Natasha Macmillan, director of everyday banking with rate comparison website Ratehub.ca, says consumers are keenly aware of that gap between what’s happening to the rates on what they owe versus what they have to save.

“As soon as the Bank of Canada raises their interest rate, we see that being translated immediately on the borrowing side,” she told CBC News in an interview. “But it does take a little bit slower for it to be translated to the high-interest saving side — not quite as quickly [and] not quite at the same rate.”

Natasha Macmillan, director of everyday banking with rate comparison website Ratehub.ca, says consumers are keenly aware of that gap between what’s happening to the rates on what they owe versus what they have to save.

“As soon as the Bank of Canada raises their interest rate, we see that being translated immediately on the borrowing side,” she told CBC News in an interview. “But it does take a little bit slower for it to be translated to the high-interest saving side — not quite as quickly [and] not quite at the same rate.” 

That’s not happening today, and there are a few reasons why… (Continued: CBC) 

 

Saturday November 12, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday November 12, 2022

Exodus continues at Twitter as Elon Musk hints at possible bankruptcy

As Elon Musk’s ownership of Twitter entered its third week, and following mass layoffs, the billionaire laid bare a delicate financial future for the social media platform, amid an exodus of top privacy and security executives.

April 12, 2017

Yoel Roth, the head of safety and integrity who had been deputized to publicly address concerns advertisers and users had about the platform, is reportedly the latest to leave the company.

The departures began on the same day Elon Musk addressed employees for the first time, saying that “bankruptcy isn’t out of the question”, according to multiple reports.

The day began with the resignation of three top security officials – chief information security officer Lea Kissner, chief privacy officer Damien Kieran and chief compliance officer Marianne Fogarty – prompting warnings from the Federal Trade Commission (FTC). (Twitter reached a settlement over privacy issues with the FTC in May.) Following those departures, Roth and Twitter’s head of client solutions, Robin Wheeler, also left the company.

June 12, 2019

In an email to employees and a subsequent staff meeting, Musk did little to inspire confidence in the company’s future. In one email, Musk described the dire economic circumstances the company was in and how important he believed its subscription service, Twitter Blue, was to its future.

“Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn,” Musk said in the email. “We need roughly half of our revenue to be subscription.”

One employee also said at the staff meeting that Musk appeared to downplay employee concerns about how a pared-back Twitter workforce was handling its obligations to maintain privacy and data security standards.

Musk’s memo and staff meeting echoed a livestreamed conversation on Wednesday in which he tried to assuage the concerns of major advertisers and made his most expansive public comments about Twitter’s direction since he closed the $44bn deal to buy the platform late last month and dismissed its top executives.

June 26, 2019

The departures compound the issues plaguing the social media platform since Musk bought it. Musk’s takeover and the resultant confusing back-and-forth on product launches and content moderation policies have led many brands including General Mills to pause ad buys on Twitter – a development the billionaire attempted to rectify in the live stream for advertisers. The duo leading the live stream, Roth and Wheeler, have now both left the company.

“So the two people Elon brought forward to talk with advertisers in an attempt to convince them to keep partnering with the company just quit,” tweeted Rashad Robinson, the president of Color of Change. “Companies that stay with Twitter at this point will be tied to these dangerous and unhinged policy changes.” (The Guardian) 

From sketch to finish, see the current way Graeme completes an editorial cartoon using an iPencil, the Procreate app, and a couple of cheats on an iPad Pro … These sped up clips are posted to encourage others to be creative, to take advantage of the technology many of us already have and to use it to produce satire. Comfort the afflicted. Afflict the comforted.

Saturday October 29, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday October 29, 2022

It’s not a trick: Your Halloween treats are getting smaller

September 29, 2022

Standing in the centre aisle of the drugstore, with its seasonal display of spooky bat decorations, vampire teeth and fun-sized bags of chocolate, don’t be surprised if something seems off.

It isn’t a nightmare. Your Halloween candy just got smaller.

A bag of dark chocolate Hershey’s Kisses is now a couple of ounces smaller than before. A two-pack of Reese’s Peanut Butter Cups is a tenth of an ounce lighter. And Cadbury milk chocolate bars are about 10 percent skimpier.

Consumers can partly blame “shrinkflation” — the phenomenon of manufacturers reducing the size of their products rather than increasing the price. Over the past two years, companies have downsized paper products, salty snacks and many other consumer packaged goods as their ingredient, labor and transportation costs have skyrocketed.

December 10, 2021

But it’s also part of a years-long plan to make Americans’ treats less caloric. In 2017, Mars Wrigley, Ferrero (owner of Nestlé’s American candy business), Ferrara Candy and Lindt (which owns Ghirardelli Chocolate and Russell Stover Chocolates) joined forces to decrease calorie counts, offer a broader range of portion sizes and provide labeling that lists calories on the front of their packaging.

The National Confectioners Association last month announced that 85 percent of chocolate and candy sold today comes in packaging that contains 200 calories or fewer per pack. And nearly 100 percent of candies sold now have front-of-pack calorie labels, up from just over half in 2016.

“Five years ago, we were behind the ball on front-of-pack labeling,” said Christopher Gindlesperger, spokesman for the association. “Those four companies, that make up about half of the market, drove a remarkable change and rallied the rest of the industry.”

December 1, 2007

Other moves are intended to provide lighter options for candy consumers. Hershey, for instance, introduced “thins” versions of classic candies like Reese’s cups, York patties and Kit Kats. The company has launched an increasingly long list of zero-sugar options, from Jolly Ranchers to Twizzlers.

In short, many candy sizes and packages are shrinking but prices aren’t.

“All of these companies are having to make these decisions based on cost,” Wyatt said. “But I can say with certainty candy companies committed to these [calorie reductions and front-of-label calorie counts] before that inflation started. The products that have transparent labeling outperform others.”

Candy may in fact be the category that first experienced shrinkflation, Dworsky said. In the 1950s, he said, candy companies told vending machine operators they would have to raise prices, going from 5 cents per candy bar to 6 cents. The vending machine folks balked and asked the candy companies just to make the products smaller.

Dworsky’s message: The only way for consumers to protect themselves from shrinkflation is by memorizing product weights.

“It will go too far when you open that carton of eggs and there are only 11 inside,” he joked. (The Washington Post) 

From sketch to finish, see the current way Graeme completes an editorial cartoon using an iPencil, the Procreate app, and a couple of cheats on an iPad Pro …

Friday November 27, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday November 27, 2020

Black Friday takes on ‘existential moral dimension’ amid pandemic

One of the biggest shopping days of the year is here, just as public health officials impose tighter restrictions in an effort to slow the second wave of the COVID-19 pandemic.

The confluence of Black Friday and rising COVID-19 cases has added what experts are calling an “existential moral dimension” to a retail event that has gradually become partof the holiday shopping season in Canada and a crucial sales vehicle for businesses.

November 25, 2011

Black Friday, famous for its pre-dawn lineups and hordes of bargain hunters, has increasingly eclipsed Boxing Day as the country’s biggest Christmas shopping event. Yet those wall-to-wall crowds are exactly what makes the shopping spree a potential health hazard in the time of a global pandemic.

“We’re seeing Black Friday fall at a particularly inopportune time in the pattern of infections,” says Tandy Thomas, an associate professor in the Smith School of Business at Queen’s University.

“There’s a lot more moral complexity to Black Friday this year than we’ve ever seen before.”

Critics have long denounced the rampant consumerism of Black Friday, an event that traces its origins to post-Thanksgiving sales in the United States.

However, retailers rely on holiday sales in general — and Black Friday in particular — to survive the slower winter months. 

May 9, 2020

“It’s the No. 1 day for a lot of retailers in Canada,” says retail analyst Bruce Winder. “It’s literally make-it-or-break-it time for many.”

This year, the Black Friday debate has devolved into “virtuous versus sinful,” says Markus Giesler, associate professor of marketing at York University’s Schulich School of Business.

“Black Friday has been reimagined through the lens of the pandemic along moralistic lines,” he says. “There’s an existential moral dimension to Black Friday this year that has amplified the usual debate.” 

Whereas previous concerns over Black Friday sales hinged on the ethics of an event in which consumers are pitted against one another in a scramble to get a discounted big-ticket item, sometimes resulting in chaos and violence, the issue now is whether in-store shopping will become a potential super-spreader retail event.

Retailers have acknowledged the risk and encouraged customers to shop early this year. Big box stores, which often attract throngs of people on Black Friday, started promotions as early as October.

Life in a Pandemic

Yet despite the online deals, analysts expect some people will still show up in-person on Friday in the hopes of snagging a doorbuster deal.

It’s the thrill of a good find in-store, versus the more transactional and utilitarian nature of online shopping, he says.

“There’s probably still going to be an awkward pandemonium in some stores with lineups and crowds,” Giesler adds. 

“Overall, it should be a little more subdued, but there will still be some deal-prone consumption. I expect we’ll still see some door crashing.” (Times-Colonist) https://www.timescolonist.com/black-friday-takes-on-existential-moral-dimension-amid-pandemic-1.24245971

 

Saturday April 25, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday April 25, 2020

Georgia Hairdessers Weigh the Order to Reopen During a Pandemic

On Monday, within hours of Governor Brian Kemp’s announcement that many Georgia businesses could reopen on Friday, Maureen, a sixty-nine-year-old retired schoolteacher, texted her hairdresser, who owns a salon in Atlanta, about an hour from Maureen’s home, in Athens. “The Gov says you can open! 🙂 My appointment is on Friday of this week. What’s your plan?” Maureen, who voted for Kemp, made the appointment eight weeks earlier, before the coronavirus pandemichad shut down much of the country, and she was hoping to keep it. Her hairdresser, a man in his early sixties who asked that I not use his name, did not vote for Kemp. He told her that he would not be reopening until the following Monday—and only in a limited way. Maureen could try one of his other hairdressers, he said, but he wouldn’t be seeing clients himself until May 12th at the earliest. And, the hairdresser told me a few days later, if “Kemp’s science project goes as expected”—by which he meant badly—“then I have no idea when.”

July 23, 2009

Nearly a thousand people in Georgia have died, so far, of complications from the coronavirus, according to the numbers that have been reported. (The actual number may be higher.) Like the Central Georgia health board and many others in the state and around the country, the hairdresser did not think it was time to shift pandemic protocols in order to reopen businesses, even with precautions like masks, gloves, and disinfectant. “I thought it was the most asinine decision any governor could have ever made,” he said, “given the science we’re presented with, what Fauci and the other guys are saying.” The hairdresser checks the daily case counts regularly, he said. “Atlanta has been spiking up and down,” he noted. “I think yesterday we had maybe twelve hundred new cases. Today, maybe seven hundred or so—but it’s not midnight yet, I don’t know.” There are more than twenty thousand confirmed cases in the state. He went on, “It’s pretty damn silly, insisting on a haircut right now. But, you have to understand, my clientele is very privileged. To them, this is a very big sacrifice, to go without a haircut. I’ve had people offer me money to come to their houses—what’s the difference that’s gonna make? I don’t know. It’s a very entitled world.”

September 11, 2007

The hairdresser’s employees are contractors, who rent booths from him at the salon. Shortly after the announcement, he sent them the Georgia State Board of Cosmetologists and Barbers’ guidelines on reopening, which he called “the craziest thing—social distancing while giving a haircut is hard.” The board recommends that barbers wear a face shield and gloves, as a start. “You need to be in a smock, too,” the salon owner went on, “and change your smock after every haircut, into another clean, sanitized smock. The client is in sanitized cape and smock and neck wrap. Then you have to sanitize your whole station and chair.” Taking each client’s temperature and having them answer a health questionnaire is also recommended. “If I were getting paid the salary of a surgeon,” the hairdresser said, “it might be worth all the scrubbing.”

Some of the contractors are willing to take risks to pay their bills. “We could wait,” the owner said, referring to reopening. “But I feel like these hairdressers chomping at the bit—if they’re willing to do it and really take it seriously, and I’m there to monitor it—I can’t say no to them. But,” he added, “I’m kind of a wimp.”

Life in a Pandemic

One of these contractors, Brittany, who’s thirty-five, has been at the salon for four years. “If Home Depot can be open and people can shop because they’re bored and want to buy houseplants, and Target can be open for people to buy yoga pants,” she told me, “I don’t see the harm in me—carefully and safely—doing a client.” Brittany said that she is a Republican but did not vote for Kemp. She charges around two hundred dollars per session. “Twelve hundred doesn’t even pay half my booth rent,” she said, referring to the stimulus check she received from the federal government. (The salon owner did not charge booth rent while the store was closed.) “So you don’t want to be unsafe, but you also don’t want to lose clients or income. It’s a rock and a hard place, you know?” (The New Yorker)