Dollar stores have traditionally disappeared into the shadows of the retail industry, often being overlooked as giants such as Wal-Mart dominated majority of small-item consumer sales. However, the past few months have proved the resilience of the local dollar store. Smaller chains such as Dollarama and DollarTree have seen a boom in sales as consumers are opting to save on any expense possible.

The recent trend in consumer spending has sparked new strategies from other giants. Wal-Mart and Canadian Tire have recently ramped up promotion of “dollar deal” merchandise, and have begun stocking much more 1$, 2$, and 3$ items.

But what does this mean for consumers? I believe that the gradual shift towards more practical, lower priced merchandise is an indication of a slowly stabilizing economy. Although it would appear the consumer spending has decreased, people are simply trying to maximize their utility with what they have at this time. A move towards cheaper merchandise indicates a step away from the need to take on credit, which in turn should lower the average consumer debt load.

Ultimately, the dollar store has made a strong comeback which not only boosts the economy, but also promotes the longer term stability which is much needed during these times.

http://www.theglobeandmail.com/globe-investor/how-canadas-retailers-discounted-the-rise-of-the-dollar-store/article4596897/

Major deregulation starting in the 70’s paved the path for quick-and-easy money schemes of which securities could be traded at high risk to create a high payout. Individuals had the ability to leverage at astoundingly high rates, allowing them to multiply their profits, or riddle themselves with debt they could not account for. This created massive problems as individuals began borrowing money to pay for previous loans. The financial collapse of 2008 marked a point in modern history which proved the need for financial regulation. Yet almost 4 years later, major changes are nowhere close to being implemented.

This lack of progress is discouraging to investors who saw “economies melt away in the murky depths of a runaway derivatives markets“ in 2008. Although economic growth is still possible, market stabilization is crucial to the recovery of the economy, especially in a time when job growth is beginning to plateau and countries are on the brink of default. I believe that due to the fragile state of the world’s economy, it is important for Canada to implement these regulations to create security within the national economy from external volatility.

http://www.theglobeandmail.com/globe-investor/investment-ideas/four-years-since-the-crisis-and-safeguards-still-elude-us/article4593407/

Canada has always been renowned globally as one of the most beautiful and most livable places on earth. Recently Canada has also been named to have the most reputable economy, but does this ranking necessarily mean that we are better off? A new report made by the consultancy The Reputation Institute shows that although the Canadian economy is honest, it is not necessarily the strongest.

Although full of highly educated people and plentiful resources, the lack of venture capitalism limits Canada’s international potential as much of its many talented people often move to other countries in search of work. The only way we can expect to be competitive in a global economy is to retain our educated workforce and promote innovative growth within Canada.

Another key issue we face is the limitations of our production. Canada has traditionally been known as an exporting nation, providing the world with a range of raw materials from wood to precious metals. However, the production capabilities within the country are rather weak compared to those of China and the US, who notably did not make the list.

So what does this mean? Should Canada change its practices for higher profits? I believe that in the long run, it will be more important to have a strong economy than a weak one.

http://www.theglobeandmail.com/report-on-business/economy/canada-competes/oh-canada-do-nice-guys-finish-last/article4588913/