There's something vaguely surreal about being in the United States these days. A couple of years ago, I wrote about our family trip to Virginia Beach, and specifically, the decline of industrial civilization. Much has transipred since then, and frankly, it ain't pretty.
Ithaca, NY is a pretty college town, nestled alongside
the Finger Lakes, and offering an easy get-away from Toronto or Kingston - which was exactly what we did. The region is not particularly industrial, being blessed with gorgeous scenery and lakefront access, plus many of the right conditions for a young but promising
wine-growing region. Farms and related agribusinesses are also much in evidence.
So the entropy that marked our trip to Virignia Beach was not so immediately apparent. What was apparent, though, was the destruction that these last few years have wrought on American society in general.
It started on our way into town. The radio played a commercial for a company that offered pay day loan consolidations. While these companies might serve a purpose for some people, their business models are rife with the potential for flagrant abuse of the most vulnerable. That is why, I'm proud to say, my home province has sought to
regulate them more closely.
Bill consolidation loans are often a good idea. They can help you lower your overall interest costs and manage your finances more efficiently. But they only work when they lighten the load. If the company offering this particular consolidation follows suit, so much the better. But experience, and cynicism, tend to point elsewhere.
Then, on an hour's drive up one side of the lake and down another, we witnessed the wholesale disposal of some spectacular lakefront property. Conservatively speaking, I would estimate that 25 or 30 per cent of all the cottages and homes we passed had for sale signs out in front of them. Again, in tough economic times, it makes sense to pull in your horns and cut your costs. And desirable though it may be, a cottage is no one's primary focus.
But the prevalence of the fire sales was bordering on the obscene. My heart breaks for people who lose their homes, and these buildings are extensions of those homes. But there's an old saying that when you owe the bank $1,000, it's your problem. When you owe them $1 million, it's their problem - and that's exactly how this felt. The number of homes for sale (and who knows how many had been foreclosed) was truly shocking.
My first encounter with the new economic reality, at least on this trip, was at the snack counter in a department store. My wife had commented on the lack of customers. So, as is my habit, I began chatting with cashier. It was a Tuesday in mid-May, and the store seemed... empty. So I asked: has it been busy the last little while? No, she said. Not at all. I'm not saying she should have lied; in fact, I appreciated her honesty. That she would have been so breathtakingly honest with a complete stranger - even while dressed in company colours - suggests that it was very much on her mind.
The same lack of retail activity was apparent at the
Waterloo Outlet Mall. The parking lot and the stores were devoid of human action. In many stores there were more staff than customers. It's good in one way - no worry about service levels. But outlet malls, like dollar stores, are harbingers of economic activity - or inactivity. When they wither, it's cause for deep concern.
Even in Ithica itself, which is theoretically somewhat insulated from the vicissitudes of big business, the recession had take hold. There were many empty storefronts in the Common, the pedestrial mall in the middle of the city.
It's easy to point fingers at the so-called "villains" of the current economic malaise afflicting the US and, to a lesser extent, Canada. And much of that blame is justified.
Greed was allowed to run rampant for decades, with predictable results. From the evidence I've seen this week, it's going to be a long climb back to prosperity.