Chapter 5

http://www.vancouversun.com/Business/Catalyst+Paper+lays+workers+shuts+down+Campbell+River+mill/1307347/story.html

This article from The Vancouver Sun talks about Catalyst Paper, a paper mill company, that is to shut down its Campbell River paper mill along with laying off more than 525 people at two different mills. The layoffs and closure are due to the fact that the company might not get relief on its municipal taxes, which are $23 million a year. Approximately 350 people work at the paper mill and if the markets don't recover within the next six weeks, then one of its mills may be eliminated. Catalyst Paper is experiencing declining prices and volumes in all of their major markets, and a big issue for the company is taxes.

The concept that relates to Chapter 5 from this article is demand-deficient unemployment. Demand-deficient unemployment results when there is a lack of overall spending in the economy. Although Catalyst Paper is not an actual store and does not sell directly to customers, it can be affected by demand-deficient unemployment. Even though taxes are one of the main issues of the layoffs, it is probably safe to say that the economic recession has a part in this. The businesses that Catalyst Paper sends their products to probably aren't selling very well; therefore they wouldn't need as many workers at the paper mill to make their products.

Pretty much the whole world has seen some form of recession in the last year or so. Many companies from all over are laying off workers and having to shut down various stores. Personally, I don't feel too much of a difference even with the recession. Day-to-day life seems the same, but that's probably because I'm not in the workforce. However, it seems that most if not all of my relatives are doing relatively fine as well. There may be layoffs here and there but none of them affecting the part of the company that they work for. We can only hope that this "economic crisis" will soon be lifted.