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Economy

How libraries play a vital role in restoring the economy – The Globe and Mail

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Christina de Castell, Chief Librarian of Vancouver Public Library, is pictured in the library’s central branch in Vancouver on July 25, 2020.

Maggie MacPherson/The Globe and Mail

Public library buildings are safe shelters and economic drivers that quietly operate within every community. They live in the bricks-and-mortar space as well as the virtual, assisting patrons with such life basics as finding employment, starting their own businesses and teaching their kids to read.

During the pandemic, libraries had to close their buildings to the general book-reading public, but facilities were used in different ways, for example, as food bank distribution centres and emergency computer labs for low-income groups. In recent weeks, they have slowly started to reopen, with a renewed understanding of the unique and essential role libraries play within the physical community.

According to Mary Rowe, president and chief executive of the Canadian Urban Institute (CUI), the uncertain times brought into focus the new reality that the library is another kind of frontline commons.

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“In a contemporary city, the built environment consists of various kinds of facilities that function as anchors,” she says, “and during this pandemic that’s become clear.”

Vancouver Public Library’s central branch.

Maggie MacPherson/The Globe and Mail

In April, the CUI held a special pandemic panel discussion on how these city-building institutions were adjusting to the lockdown and preparing to reopen. Going forward, Ms. Rowe says, they will play an essential role in restoring the economy.

“A library is as much an economic service as anything else,” she says. “To have an economy that functions, you need people who are healthy and able to contribute and who have the skills and resources to participate.”

As life gets more difficult for people who’ve become unemployed or homeless, equal access to library spaces and resources is taking on a more profound meaning. Demand for online library services has skyrocketed across the country, with expanded online programming and e-book spending. The Ottawa library system – which had lent out more than half a million materials at the onset of the pandemic – saw an increase in temporary cardholders of 5,000 during lockdown, and in Halifax, cardholders grew by 6,000.

Vancouver Public Library patrons look through the DVD section of the central branch amid the COVID-19 pandemic.

Maggie MacPherson/The Globe and Mail

Christina de Castell, the chief librarian at the Vancouver Public Library, says more than 3,000 people have signed up online for new Vancouver library cards since March and there has been an 80-per-cent increase in the use of e-books.

“In a recession or an economic downturn, we see much higher use of libraries historically, when people are struggling with money,” she says. “That’s the time they discover everything that libraries have to offer.”

There is also a renewed appreciation of the key role that libraries provide for people who don’t have the internet, or who live in cramped rooms and do not have the luxury of space. To narrow the digital divide – 15 per cent of patrons are without internet access, Ms. de Castell says – the central library created a temporary eight-station computer lab in a large meeting room to serve those who don’t have computers or printers. The branch, which is within walking distance to the downtown eastside, also made a special allowance to reopen its washroom facility for those with no other access. Recently, the VLP reopened five of their 21 branches, with safety restrictions.

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Although the core mandate is still information-sharing, library staff members also do training on how to be empathetic to vulnerable people and are often involved with outreach work, meeting with daycares in inner-city neighbourhoods to help kids obtain literacy skills or delivering library materials to care homes.

Library professionals point to cuts in government health and social services over the years as the reason for the broadening mandate.

“The reductions in funding for certain programs, whether mental health, legal aid or other forms of social support, has shifted people into libraries, so we now provide a lot more services than we did 20 years ago,” Ms. de Castell says.

A Vancouver Public Library patron uses a computer amid the COVID-19 pandemic in the library’s central branch on July 25, 2020.

Maggie MacPherson/The Globe and Mail

Eric Klinenberg, a professor of sociology at New York University, has written about the crucial role of social infrastructure, such as libraries. In an article published by The New York Times in 2018, he wrote that despite the fact that libraries are overwhelmed with a growing need, they are starved for resources.

Part of the challenge, he argues, is that the principle that all people are deserving of free access is out of sync with the current market-dominated world order. As well, he points out that few people of influence understand the broad role of the modern library at the community level.

“Libraries are being disparaged and neglected at precisely the moment when they are most valued and necessary,” he wrote.

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There’s also the question of land use. Because libraries have proved so successful in the virtual realm, some people question the value of using up so much real estate. With high land prices in major cities, libraries – like any other bricks-and-mortar establishments disrupted by technology – need to justify the square footage.

Ottawa Public Library CEO Danielle McDonald doesn’t rule out change, such as increased online use, but says the need for a “community living room” is also stronger than ever.

Surrey City Centre Library.

Andy Yan/The Globe and Mail

She sees the library evolving even more into a physical and virtual hybrid. The Ottawa Public Library covers the biggest geographic region in the country, with 650 staff, 33 branches, two bookmobiles and a budget of more than $50-million. Like many public libraries, they get a lot of value out of the budget they have, funded largely by the city with some funding from the province.

“When you look at historical patterns of plagues and different [crises], we come back to use our spaces … because we are social beings,” Ms. McDonald says. “As we intensify urban areas, people need a space where they can go.”

Andy Yan, urban planner and director of the City Program at Simon Fraser University, is concerned that libraries could face even more government funding cuts, in spite of the fact that libraries have been shown to develop communities. In his former job, Mr. Yan worked alongside renown B.C. architect Bing Thom, who designed the Surrey City Centre Library. Mr. Yan recalls that just the announcement of the now iconic structure was so exciting to developers, it was instrumental in helping to grow the municipality.

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“I hope [funding bodies] remember that libraries may not directly generate revenue,” he says, “but they can help an immigrant learn English or give somebody the resources to find a job or start a business.”

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Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Economy

Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

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