Chapter 12. B.C. retail sales downward spiral.

Summary:
The article reports that retail sales in B.C. is continuing its downward spiral to a record low, with forecasts suggesting 2008 will end with the weakest growth performance in several years. According to a report from central 1 credit union, spending in B.C. has been at an all time low because people are losing confidence due to the financial crisis and a worsening economy. Not only is the retail business being affected but housing market and equity market are also falling. But a lower Canadian dollar will discourage many Canadian shoppers to go out of the country and keep them here. So that would help the economy a little.

Connection:
Since the retail businesses are being affected because of the financial crisis making people lose confidence in spending. The businesses must either lower their prices to meet the demands, or give discounts as to let people get a great bargain. Or there would be no other way of saving a business with today's economy. But because of these discounts and lower prices wages may also be cut, or employees may find their employment terminated. Which would hurt the economy even more, so business owners are faced with a dilemma and there is no hints or clues as to what to do.

Reflection:
The lowering of prices would encourage more people to spend. Also due to the holidays coming closer the economy cannot afford to be in a recession. But giving discounts is actually a very good idea, it will let the consumers save some money and allow the retails to still make a profit. Its is profitable for both sides. Also because of this people spending more might help slow down the fall to recession while our government tries to fix this predicament. Plus sooner or later out Canadian dollar will return to its original glory and that would help the economy and raise prices. But the problem is how much longer do we have to wait to lose this problem. No one knows, but I'm sure no one wants to be in a recession.