Economics & Racing Beyond Our Means

[Chuck Porter]

In Canada many of us are watching the troubled U.S. economy and wondering ?if? and ?when? the ripple effect will make it?s way north of the border. There?s an old saying that goes something like this, ?When the U.S. sneezes, Canada catches a cold?.

Presently, our economy is still robust, especially in the western prairies where the ?oil patch? drives much of the growth. With $110+ per barrel oil, it seems unlikely ?Big Oil? will slow production. They will continue harvesting as long as the price holds out.

We see it every day, the people who have stars in their eyes and truly believe the ?well won?t run dry?. The huge house, big diesel pickup, an SUV and of course then there?s the toys. In most cases financed to the max. Mostly young folks but others who should know better too. Don?t get the wrong idea, I?m not slamming the young people of our respective countries. We were all young once. These people help to drive the economy because they ?are? young and full of piss and vinegar and not afraid to spend money. On the other hand there are some of us who are a little more seasoned and we remember the 80?s and early 90?s when our economy went sideways. Interest rates went through the roof, inflation was in the stratosphere, there were no jobs, few prospects etc. etc. The banks were the largest land owners in western Canada. The oil industry was stagnant and life in general was bleak. The young guys haven?t had those experiences ? at least not yet. It?s hard for them to believe an economic downturn could be just around the corner,
Back then there used to be a bumper sticker out this way and it said, ?Lord, please let there be another Oil Boom and I promise not to piss it away this time?.

Can we learn from our history? It?s been said life is a cycle of events.
There?s going to be some who aren?t going to make it through this financially and it will take years to recover if at all. It?s easy to sit in judgment on how others have spent their money, but remember life can change in a heartbeat. A lot of good people are going to get hurt.
These people are our friends and neighbors and will need our moral support when times get tough.

Chuck