Business closes down due to shortage of workers

[Cube Inmate]

Originally Posted by DementedReality

if i have LESS disposable income, i am going to need MORE income to keep up with my lifestyle.

A major point you're missing is that if people are worried about interest rates affecting their lifestyle, then the ALREADY don't have enough money to keep up with their lifestyles. They have enough credit to keep up with their lifestyles, which is a totally different thing. A memorable quote I read somewhere:

"Being able to afford the payments does NOT mean you can afford the item."

If you increase interest rates, availability of credit decreases. Demand for consumer goods follows.

[DementedReality]

Originally Posted by Cube Inmate

A major point you're missing is that if people are worried about interest rates affecting their lifestyle, then the ALREADY don't have enough money to keep up with their lifestyles. They have enough credit to keep up with their lifestyles, which is a totally different thing. A memorable quote I read somewhere:

"Being able to afford the payments does NOT mean you can afford the item."

If you increase interest rates, availability of credit decreases. Demand for consumer goods follows.

thats fair comment, but you know thats not it works (people will spend on credit to keep up).

so how is this good for the average joe though? demand going down i fail to see as a good thing. wouldnt that mean less jobs in the manufacturing and supply chain industries? less people working at lower incomes and restaurants, bars and other hospitality industries take a hit. its a cycle that i dont see as being good for anyone.

wouldnt it be better to have the problems we see in Calgary right now and not hope to solve it by raising interest rates?

[Shazam]

Originally Posted by DementedReality

thats fair comment, but you know thats not it works (people will spend on credit to keep up).

No, they will not spend on credit. When interest rates go up, banks are generally hesitant to start giving out money willy nilly.

so how is this good for the average joe though? demand going down i fail to see as a good thing. wouldnt that mean less jobs in the manufacturing and supply chain industries? less people working at lower incomes and restaurants, bars and other hospitality industries take a hit. its a cycle that i dont see as being good for anyone.

It's not good for the average joe. But then again, inflation is really, really bad for the average joe. Nothing eats purchasing power like inflation.

Eventually there comes a point where demand outstrips supply too much. That leads to inflation. Inflation is really, really bad.

wouldnt it be better to have the problems we see in Calgary right now and not hope to solve it by raising interest rates?

No. Inflation is absolutely the worst thing to happen to an economy. Consider what inflation is: It means that money is worth less. Deflation almost never occurs, so the economy as a whole is stuck with higher prices all around.

Keep in mind too when high rates of inflation leads to high interest rates: Your bank will force you to refinance your loans. For many people, that means that they won't be able to afford the mortgage and car anymore. Therefore, they are forced to sell. This leads to an increase in supply and thusly reduces inflation pressure. You'd better hope the gov't doesn't decide to do this, as this is when the **** really hits the fan.

Did I mention that inflation is really, really bad?

[Tyler]

Starting to wonder if I should move back to Calgary with all this wealth floating around, and live at home for a year or so and save some money....

I'm a University grad with a year of management under my belt, and I'm wondering if I would be able to get a high paying job if I moved back to Calgary or posted my resume there.

Is there a shortage of management, or simply labourers?

[Sylvanfan]

Originally Posted by Tyler

Starting to wonder if I should move back to Calgary with all this wealth floating around, and live at home for a year or so and save some money....

I'm a University grad with a year of management under my belt, and I'm wondering if I would be able to get a high paying job if I moved back to Calgary or posted my resume there.

Is there a shortage of management, or simply labourers?

There is a shortage of pretty much anything right now in the labour market. If you want to manage an oil company for 175k a year you likely don't find that job. But if you want to manage a retail store or service bussiness or something of that ilk you'll have your choice of multiple jobs in 24 hours.

All I know is 10 years ago when I started drafting the starting wage was like $10-12 an hour. Today it comes in at 12-15 type of thing. To spend two years in college and only make that type of money and drive by a bunch of warehouses advertising for more than that would be discouraging. Heck even after 10 years and being in a cuishy office job and making a decent wage I do wonder if I shouldn't go bust my ass for a year to try and make some quick money while my body can still take the work.

[Reaper]

Originally Posted by Sylvanfan

All I know is 10 years ago when I started drafting the starting wage was like $10-12 an hour. Today it comes in at 12-15 type of thing.

Actually, I've done some research on this. The average is between $16 and $21 per hour. I know it's a big range but that is to account for the higher wages being paid to piping drafters in oil and gas.