shopping

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

 

Tuesday October 1, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday October 1, 2019

Promising back-to-back deficits isn’t political suicide in Canada anymore

St. Paul, 1997

The church of the balanced budget — inaugurated by Saint Paul in 1995 — has been losing power for some time now, even if it retains significant allure.

But with balance no longer universally accepted as the be-all and end-all, a more interesting choice has emerged for voters.

The first blow against balance came in January 2009 when Stephen Harper, who had once vowed never to spend into a deficit, was compelled to acknowledge that running a deficit wasn’t necessarily a bad thing — that sometimes it’s even the right thing to do.

January 26, 2009

In that case, it was the Great Recession that necessitated a quick influx of government spending. For the fiscal year of 2009-2010, the Harper government ran a deficit of $56.4 billion. Before they were done, the Conservatives ran six years of annual deficits, totalling $157.8 billion.

Still, it was considered heresy when Justin Trudeau announced in 2015 that a Liberal government would run three years of deficits to boost a sluggish economy. One newspaper described the plan as “political suicide.” Shortly thereafter, Trudeau’s Liberals won a majority.

November 2, 2016

Once in office, the Trudeau government pushed things further — first because of economic circumstances, then because of its own choices and priorities — resulting in deficits of $19 billion, $19 billion, $14 billion and $19.8 billion.

Harper’s deficits could be traced to his decisions to cut taxes — the GST in particular. Trudeau’s deficits had more to do with new spending on federal programs.

While running for the leadership of the Conservative Party in 2017, Andrew Scheer vowed to balance the budget within two years of forming government. But as the 2019 general election neared — and with budget cuts by Doug Ford’s provincial government angering voters in Ontario — Scheer lost some of his enthusiasm for swift deficit elimination. In May, he announced that a Conservative government would instead take five years to balance the budget.

April 13, 2019

The Liberal platform released on Sunday nudges the goalposts again. With promised new spending, a re-elected Liberal government would run larger deficits, starting at $27.4 billion in the first year and declining to $21 billion in the fourth.

The Conservative response was notable for what it lacked. Conservative finance critic Pierre Poilievre’s primary argument was not that the deficits were themselves immoral or fundamentally unsound. Rather, he claimed the deficits inevitably would lead a Liberal government to increase taxes — tax hikes the Conservatives claim Trudeau is concealing now.

That attack might resonate more if the Harper government’s deficits had triggered the same consequences.

Economists like Kevin Milligan argue that the current deficit is not a matter for great concern — that government debt is not like household debt, borrowing rates are low, the situation in 2019 is not what it was in 1995 and recent deficits have been relatively modest.

November 22, 2018

The debt-to-GDP ratio — the debt as measured against the entirety of the national economy — was 31.5 per cent in 2014-2015. The Liberals now project that, even after eight years of deficits, it will be 30.2 per cent of GDP in 2023-2024. (For the sake of comparison, the debt-to-GDP ratio was 66.8 per cent in 1996, when Jean Chrétien and Paul Martin were compelled to cut spending.)

In 2011, Harper’s Conservatives promised $1.6 billion in new spending, while Michael Ignatieff’s Liberals countered with a platform that included $5.5 billion in new initiatives, all of it covered by corresponding tax increases or spending cuts.

In 2019, instead of arguing within a box created by competing desires to both balance the budget and avoid broad-based tax increases, the platforms of the two main federal parties could be upwards of $20 billion apart.

That is not a small amount of money.

If the orthodoxy of the balanced budget has weakened, it has left room for a clearer choice. (CBC) 

 
 

Tuesday March 20, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday March 20, 2018

Ontario Liberals use throne speech to make big spending promises for health care, child care

Ontario’s Liberal government teased what voters should expect in its upcoming pre-election budget in a speech from the throne on Monday, promising significant new spending on a wide range of programs and issues.

The address comes as the province prepares for a June 7 election.

The speech comes a week before the government is set to table its 2018 budget, which is expected to include a deficit of about $8 billion the Liberals say is necessary to beef up spending on health care, child care and support for students.

“After delivering a balanced budget this year, your government has made a deliberate choice to make more investments in the care and the services that the people of this province rely on,” Dowdeswell said.

“As a result, the 2018 budget will show a modest deficit next year of less than one per cent of our GDP, and outline a path back to a balanced budget.”

Health care is clearly emerging as a central theme in the run-up to the official start of campaign season.

Ontario NDP Leader Andrea Horwath was at Queen’s Park on Monday morning to provide more details on her party’s $1.2-billion proposal to provide dental care coverage for everyone in the province.

Speaking to reporters, Horwath said that an NDP government would “absolutely” run a deficit, but she said it was necessary because of Liberal fiscal mismanagement. (Source: CBC News) 

 

Wednesday December 20, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday December 20, 2017

Payday lenders squeezed by new regulations

After more than two decades in the payday-loan industry, Anthony Piet faces his most difficult year in the business.

February 16, 2017

Mr. Piet operates eight Money Mart franchises sprinkled across Canada, located in small towns such as Banff, Alta., and Timmins, Ont. Legislative changes in numerous provinces – including Ontario, to take effect on Jan. 1 – have squeezed payday lenders, in particular smaller players such as Hamilton-based Mr. Piet. New rules reduce how much they can charge and put restrictions on lending.

“Tough,” says Mr. Piet of his 2018 outlook. “Really tough.”

December 11, 2015

The much-maligned payday-loan industry sells short-term loans at a high cost, mostly to lower-income Canadians. If a person doesn’t have access to credit, but is short on money in between paycheques and needs to cover something essential, such as the hydro bill, a lender such as Money Mart is an easy and fast place to get cash. The loans are generally repaid quickly, but the fees, which long stood at more than $20 for every $100 borrowed, added up to an annual interest rate of 500 per cent and more.

December 6, 2014

Provinces across Canada have tightened the rules that govern the industry. Payday lenders insist they provide an essential service, but they have been widely criticized for exploiting vulnerable customers and charging too much. Now they say their margins are being squeezed so badly that they’re fighting for survival.

September 11, 2015

The number of payday lenders operating in Canada has been on a downward trend for several years, in part because of the new legislation. In 2017, there are an estimated 1,360, down 5 per cent from 1,434 in 2015.

For Mr. Piet, with one Money Mart in Alberta, he has taken pragmatic measures. He has reduced hours of operation, cut advertising and pulled back on community contributions. He called his Banff store’s future “tenuous.”

In Ontario, where his Money Marts are in Timmins and Simcoe, Mr. Piet doesn’t feel the new rules in the province foretell looming closures but feels like he is in a vise as he draws up budgets for the coming year. “Everything is under the microscope,” he said. (Source: Globe & Mail)