If you’ve encountered a job loss in this difficult current oil and gas Calgary market, this time it will be different – right? “When I have my new good job, I’ll continue to upgrade professionally and save for a rainy day. I’ll never take on too much of a mortgage or buy expensive lifestyle luxury items which get used only a handful of times per year. I will strive for a second cheque monthly that will be back up. I’ll be smart with my money and forget about keeping up with the Jones.’”
Welcome to the next down turn. Your realtor and your investment advisor have led you to believe that the future would be rosy. There were those glossy ads of new two story homes with luxury appliances and a double attached garage. Even your banker only wanted two years of financial history while always voiding the prospects of the economic horizon. That vacation you took in the summer of 2015 was the last extravagance before buckling down – right? Westjet whose corporate headquarters are here in Calgary has announced today a record number of passengers for the month of August.
Yes, you figured it right. I am an accountant. I’ve been doing tax work since 1994 and have been witness to much misalignment of the affairs of folks whom are for the most part strong thinking responsible people. Few folks actually prepare a household budget and without fail, these are the ones who stream through economic cycles unphased.
Our governments have also failed to learn the lessons of past down turns. Alberta has literally lost control of the public purse after a previous administration worked vigorously during a more difficult economic era to eliminate debt.
The Calgary Counselling Centre has just announced a 91 per cent increase in stress related calls associated with unemployment and fear of job loss since the same time last year.