I'm so confused that I've rewritten this post four times. Maybe you can help me.
Job losses continue...
Two nights ago, I met one of my best friends, "Sonia", at a neighbourhood bistro for our annual holiday dinner. But it was not an evening of cheer.
She cried, telling me she had to terminate her dedicated, hard-working admin assistant, "Kelly". No reason other than "corporate restructuring". Sonia cannot deliver her department's work without that role, which Kelly had performed brilliantly for six years. Perhaps, Sonia thought, the company might grant her a temporary contract employee in the new year. (Swell, a temp job with no benefits.)
But before herself, she thought of Kelly, who had recently moved her mother-in-law into her family home, at considerable expense.
but we are told to spend...
The Bank of Canada Governor Mark Carney and other economists both here and in the US advise people to spend, both to stimulate the economy and prevent the chance of a deflationary spiral.
In the US, the Associated Press' Philip Elliott reported on December 8 that "President Barack Obama outlined new multibillion-dollar stimulus and jobs proposals Tuesday, saying the nation must continue to 'spend our way out of this recession' until more Americans are back at work."
...even though that's counterintuitive.
With food banks beseeching the public for donations, and anecdotal evidence everywhere (young adults moving back in with parents, colleagues and friends' continuing job loss, new jobs that pay far less and don't provide benefits, university enrollment down), who feels like spending?
Even friends with well-paying, secure jobs are subdued in their consumption, and far more apt to write a cheque to Meals on Wheels than to Prada.
1. Can we spend ourselves out of this situation? If you're spending, on what?
2. Do you believe that these layoffs are, in all cases, necessary to the survival of organizations?
3. And do you think layoffs should happen on Dec. 16?