The Recession & Our Responsibility

by Adil Dhalla (@CreativityKTR)
Last week, we asked this community if they didn’t care about the recession anymore – an idea that we were bouncing around based on our recent experiences and conversations. It was, to be honest, an instance of unsophisticated external thinking on our part and one community member rightfully asked, “I wonder why you think it would be valuable to know if others still care about the recession? Even if they don’t, it doesn’t automatically make the recession disappear, does it?”

While this is true, gathering your thoughts was quite valuable in helping us understand the current sentiment as we begun planning our organization’s subsequent steps. The responses ranged from personal to general, but perhaps are best represented by this answer we received:

“Our polling research tells us that people don’t think the recession is over, but they don’t think it’s going to get any worse. Basically, people think its hit or close to bottom and will continue this way into 2010, before coming out. This belief means that there is a lot less fear and paranoia. Unlike say September, October of last year when there was panic in reaction to the stock market, people are going on with their lives as normal.”

Simply put, we have understood, adapted and in some cases become complacent. Moreover, with the Bank of Canada recently forecasting economic growth in this quarter, talk of the recession being over is influencing more and more people to assume that life as we knew it pre-recession is just around the corner. Unfortunately, there is some danger to thinking this way.

That’s an ironic thing for us to say because when fear was high, we sought to be a source of optimism but now that people are feeling better about the recession, we’re here reminding you to be concerned about it. But here’s why: whether or not the recession is over, its impact is far from it and the period of recovery will take a very long time.

The personal toll of the recession is actually worsening. The recent unemployment numbers are clear evidence of this, with the number of unemployed dramatically rising especially among youth. Receiving a loan (to kick start a new business) remains still improbable, charitable donations are severely declining and consumer confidence has not returned when it comes to spending. The stimulus dollars have yet to really flow and citizen initiatives, like My City Lives, are only beginning to being rolled out now. Still remaining at the forefront of our discussion is how we can save the financial institutions, the primary perpetrators behind this mess, and how can we make sure industries like the music one regain their stature (a conversation we are equally guilty for perpetuating).

Thus, we are still saliently more concerned about restoring wealth of the previously ultra-wealthy rather than being concerned about those most in need like recent grads, laid off workers or new immigrants. As another community member asked, “have we learned everything we can from *this* recession in terms of causes and cures to help us avoid and/or recover from the next one?” Our gut feeling says “not really” and is reinforced when reading about how companies like Goldman Sachs are raking in huge sums of money by new and questionable trading techniques.

Optimism rules but not without corresponding action. It’s akin to feeling hopeful in the ’08 US election, but not going out to vote.

The recession may be over, but our responsibility is very far from it.