This column was first published in the January 2016 All Month edition of the Friday AM.
The single most important economic drivers are confidence and certainty. When confidence is low and uncertainty is high, we don’t have a very good view of the economy. The reverse is equally true.
Sad stories and bad stories drive readers to newspapers, and viewers to television and browsers online. It seems we’re hard wired to consume cautionary tales.
This reminds me of an unfortunate but nevertheless true comment about US local television news I remember from the early eighties: “Watch Buffalo burn down on Channel Four”. Many supper time broadcasts began with reports of yet another building fire. Police and Fire Departments were at a loss to explain the frequency. After studying the sad state of affairs, it was determined that pyromaniacs were triggered by TV coverage of buildings engulfed in flames. The fire-starting behaviour was reduced when the coverage was changed: no flames on TV equalled fewer fires, so the story goes.
In some ways, we’re now watching a full blown economic fire on our shared media; TV, radio, print and web. And it’s feeding the worst in us: will our house be next to burn?
I want to suggest that what we really need to do is embrace confidence and certainty. Yes. The dollar is low and oil is cheap. And that’s not likely to change anytime soon. But, on the other hand, the dollar is low and oil is cheap. See what I did there?
The low dollar means we can sell more into the US, our largest trading partner. It also means their economy is on the upswing and they can spend more buying from us, be it commodities, professional services, or manufactured goods. Cheap oil means transportation will, eventually, get less expensive. It takes time for that price change to work its way through the system, but it will.
The low dollar means US visitors suddenly have Canada on their vacation list again and that’s good for the Shuswap. So if you’re in that business, be sure to target our Pacific neighbours on your Facebook campaigns. That’s easier too. Even ten years ago, marketing campaigns targeted to US customers would have been complicated and expensive. That is no longer the case. Thank you social media.
As for Canadian visitors, we’re likely staying closer to home. Consider upgrading your board shorts and bikinis to snowboards and skis come March break. And join in the best snow our ski hills have seen in years. Don’t discount the value of a great staycation either. We’re not exactly hard done by in terms of landscape and leisure.
Finally, and this is probably the part that inspires me most, cauliflower is really expensive. This excites me for the growing season ahead. We are fortunate to live in such a bountiful agrihood. With so many producers – fruit, vegetable, livestock, dairy, and grain – our producers are basically guaranteed a good year assuming weather conditions cooperate. That’s good for our micro-economy. I can live without cauliflower for a little while (well, truth be told, a long while) because I know that soon, our farmers will be planting and I have complete confidence in their ability to deliver. I might even try my hand at a decent garden myself. But that’s for another column.
So chin up Salmon Arm. Wether your glass is half full or half empty, you can still douse the flames. The glass is refillable and we’ve got plenty of water.
In you, I am, most certainly confident.