Results tagged “economy”

People tend to do a lot of shouting around budget time. They feel, by turns overtaxed, under-serviced, that the City is spending too much, and that the City isn't delivering everything it should. Usually lost in the shuffle are some basic facts about how the budget process actually works and what options are open to the City should it wish to effect any serious changes to its books.

There's more than enough trash-talking to go with the tulips this spring on Parliament Hill, with some distinctly unflowery themes (Fiscal mismanagement! Attack ads! Election threats! Secret tapes!) echoing through the air.

During the 2008 U.S. presidential campaign, much was made of Joe Biden's scrappy devotion to his blue-collar roots. A sudden widower and bereaved parent within weeks of his 1972 Senate win, his ensuing six terms—thirty-six years—were divided between the halls of Washington and caring for his two surviving sons in Delaware, riding Amtrak for ninety minutes in either direction to balance the demands of both. So when the White House announced its "vision for a new era in rail" on April 16, jointly declared by Biden, President Obama, and U.S Secretary of Transportation Raymond LaHood, the vice president anecdotally chimed in to underscore the strategy's importance. "Everyone knows railways are the best way to connect communities to each other," he said, "and as a daily rail commuter for over thirty-five years, this announcement is near and dear to my heart."

Ryan Bigge—Toronto's least ironically named freelancer and, according to the first issue of Spacing, a former "magaging editor" of Adbusters—last year estimated that Richard Florida pulled in $170 000 a year from U of T. When the 2008 Public Sector Salary Disclosure (Sunshine) list was released, Bigge took the figure of $169,999.98 to mean that his guess was only two cents off. What Bigge failed to take into account, however, was that the 2008 list was actually the disclosure of salaries for 2007, and only included money paid out for that period. In other words, because Florida was only hired away from George Mason University in July '07, the money on the list covered just the half-year he was at U of T.

The Hon. Dwight Duncan, Minister of Finance, has just wrapped up Ontario's 2009-2010 budget announcement at Queen's Park. Surprising nobody, the theme of his speech was the need to address Ontario's declining economy: Duncan began by saying that "our province is in the middle of a global economic and financial storm... we have seen a serious deterioration in our fiscal position." Ontario's deficit will come in at $14.1 billion in 2009-2010, and a return to balanced budgets is predicted to take several years. To tackle the province's weakened state the Liberals are proposing a stimulus package ($32.5 billion over the next two years for infrastructure projects, predicted to create 300,000 new jobs, and $300 million for green economy initiatives); tax relief ($10.6 billion spread over personal and business tax cuts); assistance measures (social assistance rates will go up by 2%); and a new harmonized federal-provincial value-added tax. So far, commenters are noting that Ontario's budget follows the pattern set by the federal government, perhaps signalling that relations between the two are improving somewhat.

The CBC is just wrapping up a town hall meeting for its staff, held so that the corporation's president, Hubert Lacroix, could outline the plan for tackling a major funding shortfall. The key announcement: eight hundred jobs need to be cut, to be divided more or less equally between the English and French services, with seventy of the positions coming from the corporate side. The majority of the cuts will be in television, and radio will stay commercial-free. Asset sales are also planned, though they will not be enough to rescue any of the jobs slated for elimination.

View Torontoist's 2010 Toronto map (1.9 MB .PDF)

In these perilous economic times non-profits can feel especially vulnerable: as markets drop and budgets tighten, both private and government donors become scarcer than usual. To help stabilize their finances, many non-profits have increasingly been venturing into social enterprise—a set-up whereby a non-profit runs a business that helps further its mission and also generates income for the organization. Leading the charge in Toronto is the Centre for Social Innovation, located in the historic Robertson Building on Spadina. The Centre provides affordable infrastructure (office space, meeting rooms, wireless, etc.) for a wide variety of social mission organizations: it's an open-concept, community-minded space, one which fosters interaction and collaboration among members and enables them each to do better work with fewer dollars. And in a case of happy symbiosis, the CSI pays for its operations in large part with the rental income it generates in the process.

Feel like everyone is getting a bailout except you? Brian Morin, chef and owner of beerbistro, is doing his part to change that with his "beerbistro bailout." For two weeks now, Chef Morin and his staff have been randomly selecting at least one table per day to be “bailed out” at his popular restaurant and bar at Yonge and King. When bill time comes, instead of a cheque the server brings a bright pink piggy bank topped with a lit sparkler and stuffed with cards saying that dinner and drinks are on the house.

Nobody could rightly accuse Sheldon Levy, Ryerson University's president, of lacking ambition. In his first term (the board recently confirmed his reappointment) he has shepherded the university through the early stages of an ambitious bricks-and-mortar expansion program, one that will ultimately reshape several city blocks. And in a sold-out speech before the Empire Club yesterday [PDF], Levy laid out his vision for a new phase of expansion, one that goes far beyond physical space and extends far further than Ryerson itself. Levy has a gleam in his eye, and its name is Silicon Valley North.

The CBC doesn't always get it right. In the last few months alone we've mocked it for losing an iconic hockey anthem, been exasperated by its new primetime television show, and condemned its poor taste in music venues. Still and all, we're pretty sure that the CBC is essential to keeping Canada, well, Canadian, and we'd very much like for the federal government to stop kicking it around quite so much.

When Adil Dhalla and Adam Ben-Aron think about the future, they envision a world that heralds the creativity they believe will end this recession. Inspired by a grassroots, bottom-up mentality, both men are tired of hearing about what the government can do to save people from the crisis and about how quickly the economy is deteriorating. "We're constantly hearing about banks and layoffs; there's a sense that the recession is taking a toll on us,” Dhalla said. “I like the idea of turning it around [and saying], 'Look, we can kill it.'"

Flattery will get you pretty far, and in Toronto—perhaps because of our terminal insecurity—it will get you even farther. Richard Florida has built a career on this. Now The Atlantic is hoping to cash in, too.

After yet another weird week for the Canadian markets, the magical hand of fate itself decided to step in to fuck with our economy today, as power was knocked out at many key financial buildings downtown. Torontoist contributor Tim Kiladze, who works in the Exchange Tower, says: "Power went out in the entire building around 1 p.m. Everything was out, including emergency lighting in the stairwells (très dangerous). A few hundred people were standing around on the main floor just waiting....Water wasn't working on our floor. Phones were out too." According to the Star, First Canadian Place, the RBC Centre, and "other downtown office towers" were blackened, but the stock exchange—running on backup power—is still open and still headed steadily downwards for the day. Kiladze, meanwhile, reports that as of 3:00 p.m. at the Exchange Tower, "Power JUST went back on, but the lights are dimming." Metaphor!

Finance Minister Jim Flaherty released the government's budget plan today, entitled "Canada's Economic Action Plan" (a.k.a. "Money Can't Buy Me Happiness, But Maybe Massive Deficits Will"). While the broad strokes of the budget were all leaked ahead of time—tax cuts, massive infrastructure spending, support for the unemployed, increased regulation of the financial industry, and an $85 billion deficit over five years—a few details from Flaherty's speech are of interest to Toronto. Specifically, the federal government plans to pump cash into the revitalization of Union Station and augment the Toronto-Ottawa-Montreal rail corridor in order to reduce travel time between Toronto and Montreal by thirty minutes. There was, however, no mention of funding for the TTC's Transit City plan. Maybe this snub will finally lead to the cage match between Jim Flaherty and David Miller we've all been waiting for. Two GTA politicians enter, only one leaves!

With the national economy struggling under the weight of a global economic crisis, Governor General Michaëlle Jean yesterday delivered a throne speech that was both incredibly brief (the English version contains just 750 words) and, due to the intense Ottawa cold, surrounded by hardly any of the usual vice-regal pomp and circumstance. Which was probably just as well, given that yesterday's speech was really just the pre-game show for today's main event, the federal budget.

The economic downturn has taken a toll on Toronto’s housing market. In comparison to 2007, November housing sales in the GTA were down 50 percent, and new high-rise condo sales, once the bedrock of Toronto's housing market, declined 31.6 percent this year. The average sale price for a house in November fell by $43,500, while the average condo price fell by over 10 percent. So what awaits the market in 2009? Unfortunately, more doom and gloom.

Graduating from university or college is supposed to be a celebratory event. Sadly, given all of the recent layoffs and hiring freezes in Canada, spring convocations probably won't be so merry. Although this annual passage into quasi-adulthood is often regarded as a struggle for grads with generic arts degrees and diplomas, even business students will suffer in 2009.

Torontoist has learned that Luminato staff will be taking a 5% pay cut next year. In a phone call yesterday, Publicity Coordinator Daniel Davidzon confirmed that a few weeks ago the organization reluctantly decided that a wage reduction was necessary. The pay cut applies to all staff, including CEO Janice Price, and will likely be in effect until July 31, 2009 (the end of Luminato’s fiscal year)—though it appears that the organization is still hoping that the cuts can be reversed sooner than that. The move appears to be precautionary, an attempt to keep the books in good order, rather than a symptom of deeper troubles. As Davidzon explained it, Luminato feels such a step is necessary in the face of a worsening economic climate that is proving challenging for the arts community across the country. No further cost-cutting measures are currently being considered, however, and all programming and events are proceeding as planned.

This is the third in a three-part series exploring the effects of the global economic downturn on Toronto. Two weeks ago, economist Walid Hejazi gave an overview of what we're in for as the slowdown worsens. Last week, community activist John Campey explained how Toronto's most vulnerable residents might fare in the crisis. Today, the view from City Hall.

After rising 262 points (3.1%) yesterday on the Federal Reserve's decision to slash interest rates, the TSX has been shut down all morning and afternoon. What was supposed to be a small glitch has turned into a major blackout and no one seems to know why. Luc Bertrand, Deputy CEO of TMX Group (which runs the TSX) appeared on BNN at 1 p.m., three and a half hours after the market was supposed to open, and he deflected any direct questions about the cause. Sadly, it appeared as though even he may not know the root of the problem. With markets expected to be shut all day, it looks like Canadians are going to have to get used to the forced closure of yet another national institution.

This is the second in a three-part series exploring the effects of the global economic downturn on Toronto. Last week, economist Walid Hejazi gave an overview of what we're in for as the slowdown worsens. Next week, a view from the halls of power.

This is the first in a three-part series exploring the effects of the global economic downturn on Toronto. Next week, a community activist explains how the city's most vulnerable residents might fare as the crisis worsens.

Pity the poor shopper just trying to muddle through a holiday checklist. As economic and environmental issues continue to dominate the news, shopping is becoming an increasingly fraught experience—how and where we spend our money is now a subject of moral analysis. In the last few days we’ve been buying artisanal, buying a lot, and buying nothing at all. This week’s message: buy local. Cities across North America are celebrating Buy Local Week from December 1–7. Toronto’s participation is co-sponsored by TABIA, the association of business improvement areas, and Green Enterprise Toronto. The goal is to encourage Torontonians to purchase items that are produced locally, and to make these purchases at local independent retailers. The idea is that local businesses employ and spend locally in turn, thus creating a positive feedback loop that strengthens Toronto’s economy.

Photo courtesy of Chris McDonald.

The Santa Claus Parade is over and done with for another year, but jolly old St. Nicholas and his clones have still hardly had time to get comfortable on their thrones in the shopping malls. All the same, there’s already no room at the inn—or the parking lots, anyway. As seen from a helicopter in the early afternoon on Monday (here's a larger shot), Yorkdale Mall doesn’t have an unoccupied spot, just a gaggle of aisle-crawlers cruising and waiting for someone to leave.

Photo by Jenna Marie Wakani from the NDP's Flickr photostream.

September and October have been quite the wild ride. With the $700 billion financial rescue package, a Canadian federal election, the U.S. presidential race, and the threat of corporate bankruptcies, it's been hard to de-politicize the current economic environment and take note of the fundamental trends at play. For most of 2008, Toronto didn’t need to worry about this big picture—the TSX was the world's leading (or least worst) stock market and its economy didn't look too shabby. Recently, though, the situation has deteriorated, and things in Toronto don't look very promising now: since September 1, the TSX has lost 32% of its value. To make things worse, its daily volatility has been obscenely high and 5–8% intra-day swings are not uncommon. Why does this matter? Because the investment savings or RRSP you've been trying to start (or have continued to fund) will also be down by 32% on average, and the baby boomers' pension plans are taking a deep hit.

The stock market roller coaster is continuing unabated, last week's $700 billion bailout notwithstanding. Mid-morning, the TSX was down more than 1,100 points from Friday's close, or just over 10%. It's rebounding slightly at the moment—the loss had been cut to about 650 points as of 1 p.m. today—but with several hours of trading ahead, and the credit concerns that have been plaguing the U.S. now spreading to the European markets, stability is still nowhere in sight. While Canadian banks are not closing or restructuring as their American counterparts have been, our market is taking a severe hit in part because of dropping oil prices and concerns that the American crunch will depress our trading with that country. Combined with forecasts of a Canadian recession by several top economists this morning, look for this to dominate the news cycle and campaign trail in the days ahead.

Of late, downtown Toronto has felt a lot like New York City. In addition to the influx of celebrities for TIFF and Toronto’s growing reputation as a hub of pop culture, the amount of new tower construction near Union Station is reminiscent of the development boom in the Big Apple.