Over the years, we’ve discussed various economic topics from the downturn in the economy a couple of years ago to the implementation of the HST in British Columbia and Ontario and now, the hot topic in all businesses is the effect of inflation with the rising cost of gas and groceries, among other things.
It comes down to the age-old question and it’s an individual choice. What’s my discretionary spending?
Do I think inflation is going to be two per cent or three per cent? Will it take a chunk of my golf away? Will I be going to less sporting events or will it put a dent in me going out to restaurants? Where will it affect me?
If an individual feels inflation is going to affect them, that person may cut back everywhere, but so often, you hear, `Well, I’m not giving up my Friday night dinner out at a restaurant.’
There will also be a lot of people who say, `I’m not giving up my golf.’
Okay, if they’re not giving up their golf, something else might have to give, maybe their bar bill or pro shop purchases.
It’s not the perfect scenario, but I think inflation is something that we can deal with after all of the challenges of the last few years. We’re at another crossroads with inflation.
What it comes down to really is how did you change your spending when the economy was slow? How did you change your spending when the HST came in? People change their spending at every one of those crossroads and they’re going to change it again with inflation.
There are also people who are secure in their jobs, so they’re not going to change their spending too much because of the HST or recession and now inflation.
It depends on the person and the way they look at things.
I know friends in the last recession who did lose their jobs, so who am I to speak to that person about spending? Having said that, I don’t see a lot of people I know changing their spending too much because of the HST and I don’t expect to see them changing it too much because of inflation.
Recessions and inflation are part of an unbelievable cycle. If it’s not the global economy, it’s the local economy or national economy or the HST. There will always be challenges.
I’ve been in the business for over 30 years and I know this isn’t the last thing that’s going to hit us. It’s a cycle and things are going to happen. In the future, we’ll be discussing something else, but the thing to remember is that through it all, we’re still here.