13 December 2008

Financial Stuff

Recognize the logo? My older son T has a job at the one closest to our house. Did he give up his other job at Timmies? Nope. I don't know how he's going to do it all. He still has to go to school because he's only in grade nine. And he has a girlfriend and two jobs. I'd be exhausted. As a matter of fact I think I'd want to slap anyone who suggested I get a second job to balance my budget. One job is enough, thank you.

I did tell T he can quit if he wants, that he's only 14 and not expected to hold down the jobs if it gets too stressful. He likes earning the money - and spending the money :) I believe he's also saving for post-secondary education. He asked me if I had an RESP, I don't, but offered to set one up if he wants. Although with the market the way it is I don't know if I'd want to invest in anything. A savings account will be fine I think.

And thinking of finances, why are we considering a bailout for the automakers? I understand a lot of jobs are at stake here, but would a bailout actually fix things? It seems to me it would be more of a band-aid solution. What if the automakers still run at a deficit in the following year - do we arrange another bailout? Just like any other manufacturer, I think they will need to adjust their production to suit the demand. This may mean the loss of jobs on a grand scale, but why should we support a company that is manufacturing items that aren't selling? I suspect the financial problems are going to get much worse for the US before they get better, and new vehicles will be considered a luxury item. How many people will be able to afford a new car right after they've been laid off? S told me that the US automakers bank on convincing the public to buy a new car about every three years. Is this a realistic goal considering their current financial status? If people aren't going to be buying new cars, then less cars need to be produced, not more money pumped in to keep the company operational.

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