economy Archives - Womens Post

News November 5, 2018

Trust Loans programme to increase entrepreneurial activity

Entrepreneurship plays a huge part in the growing economy of many countries across the world, and the island paradise known as Barbados is no different. The island while preparing to celebrate its 52^nd year of Independence on November 30^th, is also giving more financial opportunities to local start-ups, small businesses and entrepreneurs, through the recently launched ‘Trust Loans’.

Recently, Government launched a $10 million trust loan programme, under which starting on Monday, Barbadians can begin to apply for collateral loans to further their business visions.

“We recognize that people need a start; if you recognize, this Government has started a Trust Loan Fund for small businesses . . . . Most persons are finding it difficult to obtain loans from the commercial banks. So, we have set the policy framework so that small businesses can come and start $5,000 trust loans and that gives you a start,” said Minister of Small Business, Entrepreneurship, and Commerce Dwight Sutherland.

Under this new and progressive programme, entrepreneurs can access loans of up to $5,000 at a minimal interest rate of 1.5 to 2%. Clients will be able to also borrow this amount once they have successfully repaid their initial loan.

Acting Prime Minister George Payne Minister of Small Business, as he explained how the ‘Trust Loans’ programme would proceed, said that Government was seeking to provide ‘comprehensive entrepreneurial framework for small business development’.

He also announced that there would be a number of support mechanisms which included an alternative and user friendly website, a financial literacy bureau to assist entrepreneurs in becoming more financially savvy and a mobile phone app that help entrepreneurs complete loan applications and make payments among other features.

The ‘Trust Loans’ programme is set to provide in total $10 million dollars per year for the next five years that it will take to seed a Trust Loans Fund.

“The revolving nature of these loans encourages successful recipients to abide by the repayment requirements, which in turn will continually permit the fund to be replenished so other entrepreneurs can benefit and prudent borrowers can reapply for additional financing,” said Minister of Youth and Community Empowerment Adrian Forde, as he spoke during the launch of the Global Entrepreneurship Week (GEW) 2018.

“Increased entrepreneurial activity will go a long way in building more entrepreneurial citizens and excite our young people about getting involved in business, a borderless world where the technology opens new opportunities that were unavailable to previous generations,” he said.

Not only is it possible that the ‘Trust Loans’ will yield increased entrepreneurial activity, but the Minister also assured that there would be initiatives geared towards the encouragement of an entrepreneur in every Barbadian household, in an effort to maximize income earning potential, stimulate economic activity and increase the focus and spotlight of the Barbadian brand in both the Caribbean and International markets.

Two such initiatives are the Prime Minister’s Innovation Award worth $250,000 and the Youth Innovation Award worth $150,000 of prize money which are intended to spark new ideas, innovations and new business, leading to the generation of new wealth, jobs and bringing foreign exchange into the economy.

Business February 20, 2018

Why is there still a Target-sized hole in my heart?

Sears didn’t mean much to me. It was just a shortcut to the rest of the mall, that is until it started to get really interesting, right before it went under. A huge banner advertised a new slogan “What the Sears?”. The store was constantly under renovation. There were suddenly shelves of reasonably priced housewares and a hopeful sign that read a café was coming soon. It was a desperate makeover to stave off bankruptcy — and it didn’t work. When Sears inevitably closed, I realized with a sinking feeling the Christmas tradition staple the Wish Book was now canceled.

It was one more blow to the seemingly bleak retail landscape.

While Sears was unfortunate, and my childhood will forever miss that giant book of toys and holiday possibilities, there’s one that really hurts— the one that got away.

The store I made a beeline for every time I went to the States was finally coming to Canada! I trekked to the Cloverdale Mall in Etobicoke on Target’s opening day, but immediately something felt off. The huge store felt empty and the stock placement seemed random. I gave it chance after chance, but it never got better. It was a big debacle, and Target eventually went back to the States defeated, leaving behind empty real-estate and its big concrete balls.

Target shot its shot and lost. It came on too strong and took on too much too fast. In its zeal to enter Canada, it had taken over all of the leases of the now defunct Zellers and quickly discovered not all the spaces were suitable to be transformed into Targets. I wondered, did Canada also play a part? Was it Stephen Harper’s fault? When he ditched the beloved long-form census did it leave the corporation without enough demographic information to make proper expansion decisions?

Whatever the case, Target it’s-not-you-its-me’d itself right out the door, and I found myself at its funeral. I wanted to say goodbye in my own way, and see if there was one last bargain to score from the sad clearance wreckage. Mourners and a handful of media were gathered. Bagpipes played. A sobbing girl laid flowers. A protestor held a sign that read, God hates fake funerals. It was…something. I guess I wasn’t the only one looking for closure.

And then, suddenly, I was hit with feelings of nostalgia for another departed store. The company that was cut to make room for Target —Zellers. I felt longing for the sales racks I had combed through with my mom, the café where I had coconut cream pie with my mother-in-law, my hometown store where the teddy bear mascot beckoned, “Come ride with me! All aboard the Zeddy wheel.” I was so psyched by Target’s arrival, I didn’t even think to miss Zellers.

Stores promise they will always be there. They promise to help everyone, “live better.” So, there’s something uniquely traumatizing about seeing a store being liquidated to the bare studs, with everything for sale, including the fixtures. The space stripped of its former meaning. And going through this process again and again, store after store, what kind of damage is that doing to the Canadian spirit?

Will all these closures scare off potential suitors?

It’s not like I’m totally without selection. There’s places where I can shop for groceries and get a pair of pajamas. Well-lit pharmacies where I can pick up prescriptions and get 40 per cent off on a bestselling paperback.

But there’s something missing. There’s not one place where I can go to for everything, a place I can wander around and get design ideas while I shop for food, and look at clothes I actually want to wear, with sizeable departments so if I’m in a hurry I don’t have to run all over the damn place.

Maybe it’s time to move beyond brick and mortar stores and embrace the future. Order everything online? But sometimes, I just don’t know what I want until I see it.

How can retail be dead anyway when the largest online retailer in the galaxy, Amazon, just opened up a store? And there was a line up around the block to get in?

I can’t help feeling like there’s something missing. Target could have been the one. But, for whatever reason, it wasn’t, and now there’s abandoned retail space that to this day sits empty and in need of revitalization. For a company that has the imagination, there’s a Target/Zellers sized hole to fill. There’s an opportunity for someone to mend the retail therapy gaps. If only someone will just step up and try.

Featured Image by Mike Mozart

News February 7, 2018

Canada “ill prepared” for automated vehicles

Canada is not ready for driverless cars.

This new technology is supposed to help reduce the number of traffic-related accidents in addition to reducing greenhouse gas emissions, and yet, Canada is moving with caution when it comes to self-driving vehicles. A new report from the Standing Senate Committee on Transport and Communications discusses the benefits and the challenges of self-driving vehicles, resulting in the overwhelming conclusion that this country is simply “ill prepared” for this technology.

“We are approaching the end of an era for the traditional, individually-owned, human-driven automobile. In the not-too-distant future, people will be able to summon a driverless taxi from their smartphone and may therefore decide to forego vehicle ownership in favour of these shared automated vehicles,” the report reads. “These technologies also raise a number of concerns in terms of job losses, privacy, cybersecurity, urban sprawl and infrastructure.”

Experts say self-driving vehicles could become commonplace in 10 to 15 years. The report differentiates between autonomous vehicles and connected vehicles, or rather technology that allows for communication between devices like a Smartphone or even vehicle-to-vehicle.

The benefits of automated vehicles are widespread — fewer traffic deaths caused by human error, ridesharing potential, and freedom for the elderly or those with mobility issues. According to the Conference Board of Canada, the economic benefits of self-driving cars could equal approximately $65 billion annually in collision avoidance, heightened productivity, fuel cost savings, and congestion avoidance. They also predict that automated vehicles will prevent 80 per cent of road deaths.

At the same time, there is still a lot unknown about how this technology is going to effect Canadians, especially when it comes to the economy. Experts say this change could affect the jobs of 1.1 million Canadians. For example, the trucking industry expects to employ 25,000 to 30,000 less drivers by 2024. New infrastructure may need to be created to accommodate this technology. Privacy is another big issue, as most technology is vulnerable to cyberattacks and the data collected from an autonomous vehicle would be rather sensitive.

The committee listed 16 recommendations on how to proceed with the integration of self-driving technology. Included in these recommendations is the creation of a joint policy unit to aide in the creation of a national strategy dealing with autonomous vehicles, the writing of legislation to deal with issues related to privacy and cybersecurity, and the formation of a road safety plan. The committee also wants Transport Canada to develop vehicle safety guidelines for the development, testing, and deploying of these new self-driving cars. At the end of the report, the committee calls for a national strategy on how to deal with this new technology.

What do you think about the potential for automated vehicles or connected vehicles? Let us know in the comments below!

Business February 4, 2018

Automation may be the future, but it hurts employment

I went to see a movie a few weeks ago, and I was shocked at what I saw when waiting to purchase my tickets — a long row of automated machines and a single employee. The employee was there to deal with cash purchases only. Everyone else was encouraged to use their credit or debit cards at one of these computers to buy their movie tickets.

It’s not just Cineplex. Shoppers drug mart now has a series of machines for self-checkouts (Debit/credit only) and you can order fast food at Macdonalds using a fancy touchscreen.

Metro, the grocery chain, announced earlier this week they will be testing scan-and-go technology so they can increase the number of self-checkout machines in their stores. The reason? To offset the higher minimum wages in Ontario and Quebec.

Metro already has self-scanning checkouts in 30 stores across Ontario, and plans to add more by the end of the summer, including a few at the Food Basics discount store. After the pilot, more machines will be added, assuming it is successful.

Automation may be the way of the future, but it will have a drastic impact on the younger generation, most of whom get their first jobs at places like Cineplex, Shoppers, and Metro. If those jobs disappear, where will these young people go to make an income? Where will they gain valuable work experience?

A study written by the McKinsey Global Institute predicts that by 2030, as many as 800 million jobs could be lost worldwide to automation, particularly in middle and low-skill occupations. This will create a two-tiered labour market, according to the report, in which “stepping stone jobs” are eliminated while high-paying creative jobs are not.

“New jobs will be available, based on our scenarios of future labor demand and the net impact of automation,” the report reads. However, people will need to find their way into these jobs. Of the total displaced, 75 million to 375 million may need to switch occupational categories and learn new skills.”

At the same time, the report says that worries about future jobs are unfounded, as the labour market will adjust over time. The benefits of automation, which were outlined in a previous report by McKinsey, such as an increase in productivity and efficiency, will outweigh the dangers. “Automation of activities can enable businesses to improve performance, by reducing errors and improving quality and speed, and in some cases achieving outcomes that go beyond human capabilities.” In the United States alone, automation will equal savings of approximately $2.7 trillion in wages.

The key in these findings is that change occurs slowly over time. Replacing minimum wage workers with automated machines the year the minimum wage increases, is moving rather quickly. Other jobs need to open up for younger people before their traditional positions are eliminated. The unemployment rate in Canada may be relatively low at the moment at 5.7 per cent, but for youth, that number is 10.3 per cent. That number is going to increase unless companies make room for young people, despite their move to automation.

What do you think? Let us know in the comments below.

Editorial January 5, 2018

Greedy Tim Hortons just lost my business

My heart bleeds for you Tim Hortons. Last year, you only earned $3 billion (US) in revenue, so with this minimum wage increase, I’m wondering how you will keep afloat? Those extra two dollars you now have to pay your hard working employees is bound to create havoc. Owners of the stores will need to work even harder to make ends meet.

Hopefully, you detected the sarcasm.

It was all over the news Thursday. A Tim Hortons, owned by the children of the business’ founder, has told employees they will no longer receive benefits or get paid for their breaks. The reason? It’s that darn minimum wage increase. Without “assistance” from head office or the government, Tim Hortons apparently cannot afford to continue offering 15 minute paid breaks or health and dental.

Here are some of the changes Tim Hortons — at least this particular store — is making to accommodate the new labour laws:

Breaks will no longer be paid. This means that someone working an eight hour shift will be paid for seven and a half hours instead of the full eight.
No more bonuses for covering shifts when called on days off.
No “day of pay” when you have a death in the family and cannot work
Dental and Health benefits will no longer be covered. Those who have worked at Tim Hortons for five years or more will have to cover 50 per cent of the cost. Those working between six months and five years will have to cover 75 per cent of the cost.

Essentially, for some employees, having to pay 50 per cent of the cost of their benefits and with the loss of paid breaks, an employees biweekly paycheck could be even less than it was prior to the minimum wage increase.

But, the owners? Oh, they won’t be affected now. The revenue will continue to stream in. Problem solved, right?

This is what I hate about the world we live in. It’s run by greed. While small, mom and pop businesses have a right to be a little concerned, this province-wide freak out by large franchise businesses is disgusting. It’s proving that employers really don’t care about the people who work for them. It’s all about the bottom line, and if that means your cashier can’t afford to actually eat at your restaurant, then that’s too bad.

As a former Tim Horton’s employee, I know first hand how hard these people work. It is a fast-paced environment, with high expectations of quality and service. Most employees are immigrants or young people trying to support themselves and their families. They come in before the sun rises and sometimes leave after the sun sets. They cater to the whim of all customers, no matter how rude or inappropriate they may act. They clean bathrooms, work the food line, stand at cashier, and make runs to the garbage dump wearing t-shirts in -30 degree weather. They do all of this, every shift, regardless of whether they are feeling well or just spent the last 12 hours in classes or writing exams.

Can you imagine doing that job?

The raising of the minimum wage is causing unnecessary fear among business owners. They think they need to immediately cut staff and raise prices. A December report by the Bank of Canada didn’t help with its statistic that 60,000 jobs could be lost by 2019. But, can you judge the financial repercussions of these labour laws after only one week, based on predictions and rumours? As with most big changes, businesses need to give the process time to work. The economy will bounce back after a few months of uncertainty, and if it doesn’t, owners can deal with it at that time. Acting pre-emptively to ensure larger revenue does nothing but make you look foolish and heartless.

In fact, before making any changes to your business, I challenge every business owner, manager, or executive to try living off $14 an hour while paying into benefits. Do this for a year. Only then can you complain about the minimum wage’s affect on the economy.

As for Tim Horton’s, it’s a damn shame. As a fervent Timbit lover, I’m incredibly disappointed. The franchise is saying that each store owner has a right to enact their own rules, but this store is owned by the family founders. What kind of example are they setting for everyone else? This precedent is incredibly dangerous for those working for so little money to begin with.

Honestly, I would rather buy a more expensive coffee at a local business and reduce my caffeine intake than spend money at a restaurant that treats its employees with such disdain.

Sorry Tim Hortons, but you just lost me as a customer.

Sustainability June 10, 2017

Baby boomers and millenials need to prepare for senior crisis

Baby boomers and millennials are often at odds with one another due to differing values and desires. Baby Boomers are often blamed for the state of the economy and environmental degradation today, and millennials are seen as flippant and spoiled. Both parties enjoy pointing fingers, but the reality is these are the grandparents, parents, and children of society, and everyone must learn to work together.

In coming years, retiring baby boomers will be the largest age group in the twenty-first century to reach old-age and millennials, as a much smaller generation, will be in charge of providing for these seniors. To avoid being crushed economically on a global level, millennials and baby boomers need to put their differences aside and figure out how to support this fundamental change in society. The world is rapidly aging, with the number of people aged 60 or up growing from 11 per cent in 2006 to 22 per cent by 2050, according to the guide on building age-friendly cities by the World Health Organization (WHO). This is a massive population shift and society needs to prepare essential senior’s services in cities all over the world.

In celebration of senior’s month in Ontario, throughout the month of June there will be a lot of focus on providing services for seniors. The City of Toronto is dedicating programming to the safety of older adults with Toronto Fire Services, which includes door-to-door visits to Toronto Community Housing senior’s buildings and fire prevention services will conduct visits to provide safety tips to avoid home fires. Ontario is also supporting 460 new projects through the Senior’s Community Grant program to help seniors stay involved and active in their communities. This includes providing seniors with projects and initiatives in the non-profit sector to stay involved and engaged. Though these projects are positive for seniors, housing and transportation should be the central focus for senior’s month in Toronto.

In order to create an age-friendly city, builders must create stronger transportation. There is a global shortage of affordable housing that focuses on seniors and building infrastructure with old-age-motivated features will help avoid a housing crisis in the next 10 years. Public transportation benefits everyone and is a necessity for seniors because many can’t drive after a certain point. Buses and subways give unlimited access to essential city services such as medical and recreational services and should be a priority to build an age-friendly urban center.

When planning for seniors, providing accessibility in every part of the cityscape is also considerably important. According to the Age-friendly Checklist by Alberta Health, every aspect of a senior’s daily transportation must be easily accessible. Sidewalks need to be even for seniors with mobility issues and provided on all roadways. Public transportation must have elevators and easy access to buses and subways. Public buildings must be accommodated with handicap washrooms and ramps if there are stairs. In colder climates such as Canada, preparing for icy conditions and cold weather is also relevant for seniors.

With the better part of the baby boomer generation retiring in the next 10 years, it is imperative to start orienting infrastructure towards ensuring this large population of seniors will be taken care of. The frivolous arguments between millennials and baby boomers are ridiculous and must be abandoned. Instead, everyone must work together to ensure that seniors will have homes and transportation, and millennials won’t be crushed by the debt of an impending housing or public transit crisis.

For senior’s month, opening a discussion as to how to deal with the larger problems of creating an age-friendly city is ultimately the way to creating a stronger and more resilient city for generations to come.

Sustainability May 11, 2017

Canada needs to invest in green bonds to support infrastructure goals

With the rising costs of climate change and environmental degradation, governments are vying for solutions by investing in green infrastructure.

One of the most effective ways to invest in these types of infrastructure and energy projects is through green bonds — and it’s high time Canada gets the ball rolling. Green bonds are fixed-income securities that are created to fund projects that have environmental and climate benefits.When a project needs to be funded, it is possible to reach out to investors or creditors to support a project through bonds as opposed to obtaining a loan from the bank. Typically, federal governments will issue green bonds from public entities and will also provide targeted tax incentives. The involvement of the government in green bonds lowers risk and improves return and makes the investment more desirable. This pushes large stock-holders to invest in green projects, and helps further build a green economy.

Canada has seen a total of $4.5 billion in total green bonds issued so far, with Ontario leading in investments in 2014 and 2017 consecutively. The Quebec government has also issued a bond, but the federal government has yet to release green bonds according to a report by RBC Capital Markets. The federal government and private market issuers have the capacity to support $56.3 billion worth of green bonds for green infrastructure in public transit, renewable energy, and electric vehicles. The support of the federal government is needed to make green bonds competitive in Canada.

Across the world, green bonds are growing as a viable way to build green infrastructure. In London, England, the Climate Bonds Initiative contributes $694 billion that are being used to support low-carbon infrastructure. China has invested $36 billion in green bonds. This type of investment makes it easier to gain government approval on green projects rather than regular development initiatives. Even in India, developers are turning to the rising international trend in green bonds to support building projects as their weakened banks shy away from the non-green alternatives.

Canada has the opportunity to become a global leader by moving away from a purely resource-driven economy. Alongside the $180 billion over 12 years the federal government has committed to spend on infrastructure, green bonds could help support that lofty goal. If the federal government invested heavily in green bonds for environmental infrastructure projects, it could also give the currently depressed resource economies in Western Canada a much needed push towards a green economy.

It shouldn’t only be the responsibility of the provinces to invest in green bonds. The green economy is the way of the future, and green bonds are yet another way to make that a reality. It is time for Canada to take a stand on the international stage and become an environmental leader worldwide.

Politics September 12, 2016

Ontario Throne Speech promises childcare and electricity rebates

The vacation is over and it’s back to the daily grind for provincial government officials. Parliament officially kicked off Thursday, with a throne speech given by the Honourable Elizabeth Dowdeswell, Ontario’s Lieutenant Governor.

The throne speech was meant to help reset the Liberal government agenda and help ministers focus on new legislation. Premier Kathleen Wynne surprised Ontarians last week when she decided to prorogue the government so that the ceremony could take place. The speech outlined a lot of the Liberal government’s successes and achievements, and presented some of the new legislation that will be introduced later this year. However, it also means that all government legislation that was on the order paper prior to the prorogation will have to be reintroduced. Our Members of Provincial Parliament are in for a busy session, that’s for sure.

The liberal government has promised to re-introduce all pieces of legislation as they were, with amendments attached only to election finance reform. This week, the government will move to prohibit MPPs from all parties to attend fundraising events.

Here are a few highlights from the throne speech:

Over the next five years, the Ontario government wants to create another 100,000 childcare spaces for kids up to the age of four.
As of Jan. 1, 2017, residential homeowners will see an eight per cent rebate on their electricity bills, equalling the provincial HST. This equals about $130 in savings for a typical Ontario household. Small businesses may be eligible for the benefit.
The Cap and Trade and Climate Change legislation will be introduced to the House in January.
Ontario will continue to invest in road infrastructure and transit via the $160 billion commitment over the next 12 years.
The next provincial budget will be balanced.

The rest of the 30-minute speech reinforced the Liberal’s commitment to growing the economy, reducing the province’s carbon footprint, and investing in healthcare.

With an election set for Spring 2018, this is the perfect opportunity to the Liberals to remind the public of what the government has been up to these last three years. Public support for a politician can waver after a few years — when people realize that their promises are taking longer to fulfill than originally expected. A throne speech and a new session of Parliament may be exactly what this government needs to refocus and get on track.

Either way, everyone is watching now. Premier Wynne made the bold choice to make this new vision known to the scrutinizing eye of both the public and the media. It’s a brave and democratic choice — let’s just hope they are able to hold on to that vision without faltering.

Politics August 31, 2016

Premier Wynne shows what female leadership can do for climate

This week has been a whirlwind for the provincial government. Ontario Premier Kathleen Wynne’s is in Mexico City to discuss environmental and international relations, all the while promoting women within these industries.

The premier made the trek down south to discuss the importance of climate change and the economy with Mexican leaders, exporters, and potential investors and to host the first-ever Women in Leadership Climate Change Panel Discussion. The participants of this panel discussed the role that women can play in the economic transition to a low-carbon economy and explored the unique experiences of the Indigenous people in the fight against climate change.

Several other prominent women leaders were present as well, including the Executive Secretary of the United Nations Framework Convention on Climate, Her Excellency, Patricia Espinosa. Espinosa was elected executive secretary in May 2016 at the Paris Climate Change Conference. She is originally from Mexico and has worked in foreign affairs between the Americas for several years. Espinosa was joined on the panel by Tanya Muller Garcia, the Minister of the Environment of Mexico City. Garcia actively promoted cycling programs throughout Mexico City and played a large part in integrating the region’s transit system.

Wynne has had a large impact on the climate change agenda in Ontario, most recently with her adoption of cap and trade in Ontario. Part of her agenda in Mexico is to promote an open trade relationship with Mexico City, who has recently adopted a pilot project cap and trade program themselves. An interworking relationship of cap and trade with Mexico would have a significant economic impact on Ontario’s new climate change incentive, and would integrate will with the programs in California and Quebec. Recently, cap and trade has come under fire because Quebec and California have failed to sell all of their emissions, leaving both governments in debt. Many worry Ontario will suffer the same fate.

The climate change conference is a good opportunity for Wynne to show that Ontario is not concerned with the xenophobic agenda that Trump followers and the US is currently leading towards, and is instead open to creating trade partnerships involving climate change. It is inspiring to see a representative of the Canadian political fabric represent women interests, tackling environmental concerns, and promoting healthy international trade relations in the midst of struggling global unity.

It is easy to see this week as a win for Wynne.

Do you enjoy our content on sustainability and green living? If so, sign up for our newsletter below:

[email-subscribers namefield=”YES” desc=”” group=”Public”]

News June 30, 2016

Brexit vote causes loonie and pound to plummet

The Brexit vote has caused the loonie to plummet and has left many Canadian stockholders running. Britain’s decision to leave the European Union has upset the global market greatly due to the unprecedented nature of this event.

The Canadian dollar dropped to $76.28 cents US, after initially dropping $1.37 US on Friday and dropping another $0.65 cent US on Monday. This is a substantial currency loss and has put the TSX stock market into a frenzy. The Canadian dollar is expected to continue dropping to approximately $ 0.74 cent US over the next three months due to turmoil in the market over the uncertainty surrounding the Brexit vote. At the same time, many financial experts are expecting the market to re-stabilize because market overreaction is a typical response when a great global shift occurs.

Britain’s vote has left Canada in a precarious economic position as well, as our country has strong trade relations with Britain. Though many financial consultants are stressing that the market will stabilize, others are concerned for the future of the North American market. Canadian and U.S markets rely on Britain as a primary communicator to the EU for trade relations.Without this point of contact, trade relations may become more difficult as the British middle man pulls out of the EU. The free trade agreement between Canada and the EU called CETA has already seen resistance from other European countries since Brexit. London is also the base for Canadian banking operations and this decision may put them at risk.

Another concern is what will happen to British stock portfolios when the country separates from the EU. The EU passport that accompanies several stock portfolios in the country create higher value when considering trade options. Without unlimited access to the other countries in the EU, people are looking to sell their stocks. When the market falls out of balance with panicked stockholders looking to jump ship, it becomes threatened and could cause further instability to the market.

Before the vote occurred on June 23, the British pound was trading at $1.50 US. The pound now stands at $132.40, a 31-year low for the country. The severe drop of the pound is causing reverberations throughout England and it is unclear whether recovery will be possible once they leave the EU. There are rumours circulating that the Bank of England will soon cut interest rates to try and help stabilize the market. Cutting interest rates would help lower costs to investors while their stocks plummet, but will not be enough to restore the pound to its pre-Brexit value. The Royal Bank of Scotland had their shares halted after declining 15 per cent, and the Euro dropped six per cent as well.

Other “glass-half-full” investors urge Canadian to buy the cheap stocks while they are hot, as panicked stockholders will sell cheaply when the economy temporarily drops. The TSX market was down a whopping 210 points to 13,681 in the afternoon on Monday, reflecting that Canadian stockholders were panicking. Bank stocks swung the market heavily because they dominate the TSX stock market, and are easily affected by global impacts.

Another potential plus is the impact on the US economy. Wall Street experienced its worst day on the market in the last 10 months and this might push the US Federal Reserve to delay increasing interest rates as previously planned. This would be helpful to the Canadian economy as it would make stock options cheaper in the US, but could potentially continue to drive housing prices upwards due to low interest rates in both countries so it is difficult to foresee if this is positive or not for Canadians. The Brexit vote also creates a more nationalistic tone in global trade relations and could hurt the potential for the Trans-pacific Partnership, an important trade deal for Canada.

One of the reasons that British citizens opted to leave the EU was to help their economy. It was argued by Brexit supporters that the taxes demanded by the EU were too high, and maintaining a private economy would be more profitable for the country. The plummeting pound and unstable British market has clearly proven otherwise. Leaving the EU will weaken the British economy tenfold and leave it without valuable EU trade partners in the global market.

This EU exit is unprecedented in history and its impacts to the future are unknown — but clearly it will be dark days ahead for the British economy.