Festival City Rotary Newsletter January 15, 2013

Posted by Vincent Hill 
on Jan 15, 2013
 

The Rotary Club Of Festival City

President:  Dianne Yundt

Minutes of the meeting of January 15, 2013

Club email:  festivalcityrotary@gmail.com

Club website: www.festivalcityrotary.ca

Guests: From Stratford Rotary we welcomed Rob Ritz. Loeticia Figueiredo is our exchange student. Jamie Gibb is a guest of Jean Aitcheson and Frank Marsden is a guest of Deb Stacey-Rivers.

Draw Prize: Ron Rogers donated the prize won by Brian Rivers.

Announcements:

  1. Dinner of the Month Draw: Chelsea Gordon won the prize for dinner at Pazzo.
  2. Fireside Chat: Membership chairperson Deb Stacey-Rivers is hosting this event at her house, 6 Polley Place on Monday January 21 at 6:30 PM. This event is for new Rotarians who want to find out more about our club and the various ways in which new members can make a contribution. See Deb if you are interested or sign up for the event in the Coming Events section of ClubRunner.

Guest Speaker: President Dianne introduced Ron Rogers, a founding member of our club who showed us a series of graphs and charts outlining the financial trends which have occurred over the last 30 years.

From 1982 to 2012 Canada’s population grew from about 25 million to 33 million  people. In 1982 the unemployment rate was 11.2% versus 7.2% in 2012. The lowest rate occurred in 2008 when it was 6.1% which is considered full employment.

The Chretien/Martin government programs to drive down inflation are still having an effect today. Interest rates on mortgages and GIC’s have dropped to historic lows.

Who benefits from the programs? Borrowers certainly are benefiting by obtaining low mortgage rates. Savers have been hit hard. $500 000 invested in GICs in 1982 at 15% generated $39000 of income but the same amount today at 1.9% interest nets only $9700. The low rates are certainly making it difficult for those saving for retirement.

Average household incomes have risen from $63000 in 1982 to $80300 today but average house prices have increased from $70000 to $3600000. This means that the cost of owning a home has risen from 1.1 times income to 4.5 times income. The number of mortgages in arrears in Canada has remained at a steady 0.43% over the last 30 years. Canadians have not used their homes as a bank to the degree which Americans have.

Car sales continue strong in North America.

Ron’s conclusion after showing his graphs and charts is that on balance we are living in the best of times and not the worst of times.

Ron was thanked by Dianne Yundt.