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TIDE HERALD Wednesday August 23 1989 Page Business Paqe Invest 1000- make 1 million Did you know that if you could at birth Rift would double Diane Your Business Heavyhanded rescue of Canadian brewers has ba That because with all that perishable American beer on its hands the turned around Aug 9 and clashed the price The sale will end in September SIGN OF TIMES No one knows for sure when the trouble began but it is a sign of the times in the beer business Simply put Canadian beer is too expen In the battle between S and Canadian brewers for a bigger share of the Canadian beer market consumers were winning for a while When the beer companies saw consumers reaching for the brew they ran to the government for help They fumed that if things continued the way they were going American beer sales would reach 200 million in a couple of years That s compared with last year million One big brewer s warn ed that its profit would suffer so much that it would have to lay off a quarter of its Ontario workforce or people Then the government s in So consumers won and lost and won again albeit temporarily The whole ridiculous has led to complaints by S trade of who are accusing Canada of violating fair trading practices Canadian brewers for their part are accusing the Americans of dumping beer in Canada Whether or not they are guilt stifling competition brewers are guilty of not being able to make beer as cheaply as the Americans Saving on a six pack was nice while it lasted Let s hope the breweries can streamline their operations and become competitive soon Forty eight million cans of American beer on the shelves and more on its way Oh the troubles that beset the Liquor Control Board of Ontario One of the silliest stones in re cent has come full circle On July the LCBO raised the price ol American beer On Aug it lowered it again though not quite to early levels Earlier this year you could by a six pack of American betr for as little as a six pack of Canadian beer cost GO And price does ke a Let s go back a little By May sales of Lone Star and Old Milwaukee and the like had risen sevenfold from a year earlier Things had gotten entirely out of hand in the opinion of Canada s big beer companies Something had to be done they told the pro vincial government than S brewers had claimed a frightening seven per cent of the Ontario beer market compared with one per cent a year ago People Alberta and British Columbia will not find this surpns S beer has already swallow ed up about per cent of the market in these western provinces In Ontario though brewers were worried Jack Ackroyd head of the said the government should set a minimum price for beer in the province Eventually the govern ment stepped in and raised the price of a six pack of S beer to by imposing taxes and ing charges Meanwhile Canadian breweries cut their price to Sales of American beer dried up Now in August the Ontario government s heavy handed at tempt to come to the rescue of the brewers has backfired The government will end up losing millions of dollars in revenue from the sale of the American beer And some people may still be laid by the beer companies as salepriced S beer is now washing over the market NC Did you know that if you could double your money 10 times in a row an initial investment of SI 000 would grow to over million Do you know the rule of It is infallible and simply states Divide the rate of return into 72 and it will tell you how long it takes for money to double in value if you let it compound In other words if you earn nine goes into 72 eight times which means money earning 9 will double in eight years Or if you 12 money will double in 6 years or 6 money will double in 12 years If you average per year money doubles in a little less than five years because 72 divided by 15 48 years Simple tit rule is always Let play with it If you were 20 years old and had 1 000 and it doubled every Five years for the next 50 years return doubles every 5 years until you were age it would be worth over J 1 mil lion If someone gave you SI 000 at birth and it doubled every five years at 15 it would be worth overSS million at age Fantastic isn it Where was Guardian who didn t put I 000 to work for me when I was bom What if you only earned That 1 at birth gift would double every eight years malting it worth 7 million You would have million less than the 1 rate of return This fantastic growth of money is made possible by what we call com pounding Too many of us never want but rather we want to spend those dollars or the earnings on those invested dollars every year If the infant who received the had put the monies in a mutual fund and averaged per year most good equity mutual funds have done even over ihe past years would have been earned from that in vestment each year If the parents had spent that 1 each year on something for the child and as the child matured into an adult heshe also spent thcS150 per year they would have spent in total by age The person who allowed the 000 to compound until age would actu ally have 7 787 to be if my calculator is working nghi why don you work it out That person could now go out and spend that 750 the spend each person spent and still have over left If you had million at age and you converted that to a mutual fund withdrawal program of 1 per month ITS YOUR MONEY Paul J 2 per year you would be receiving per month Could you live on 000 per month Mind you if inflation averages just per year over the next years that baby will need S71 000 per month to match what 500 per month will today They d just squeak by with 000 per month Scary t it Paul J is the author of the best seller Why I Invest in Mutual Funds and President of Regal Capital Planners Ltd For fret information on mutual funds ask for Why Doesn t Everyone and contact Peter C Mas son 10 Drive Ont or phone Labor defensive on productivity Smoking policy Continued from Page to the Ministry of Labour Bill 194 to be implemented next year will reaffirm the provinces concern for health the Ministry says But smoking policy making for businesses should be in house Mr said The better way to do it is in dividual policies for private cor porations This could become term of employment he said Businesses working out of the home and public areas of businesses will not fall under the Smoking Act a government paper says But the law will apply to enclosed areas where there is at least one worker and one employee by Shirley Carr President Canadian Labour Congress ng wisdom in some quarters is that labour unions are inhcr hostile to the concept of out in Canada a few years ago three quarters of the respondents believed that Canada had a productivity prob lem While management and labour unions were ranked about equal in their ability to improve labour was ranked much lower than business for willingness to improve productivity This perception is not difficult to understand given that labour is often put on the defensive on the matter of productivity Let me give you some examples Labour is put on the defensive in terms- of the very way productivity is usually measured for instance as a ratio between output and labour input This approach can be very misleading however the measure is strictly a numerical one it says nothing about cause and effect The performance of this measure can be affected by many factors other than labour including the quality of management Unfortunately much of the consciousness of people about a national productivity prob lem is created by the media which usually does not have the space time or inclination to sort out all the factors at plav A second issue that puts labour on the defensive on the productivity issue is the manner in which productivity improvement introduced For the most part whether the issue is for example the of nev technology at a particular plant or the closing of a plant as pan of a corporate rationalization to improve over all operations initial decisions are taken behind closed doors and behind closed books Worker and on from step one s very much the exception Thirdly labour is often on the de on productivity issue when the view is advanced that labour unions are intrnsicalk of In this stereotype unions seek ing ever wages and even more rigid work rules preseni the kind of flex i 1 1 to compete in this competitive world I his view is just to as a labour leader in countr where workers have experienced a dec or real wage cuts It also flies in I a great deal of hard evidence to the contrary 0109 877 Simon CHARTERED ACCOUNTANT 6 Phone 416877 132 Main Street South Georgetown Ontario OFFICE MAGIC STEVEN C FOSTER BALLB BARRISTER SOLICITOR 37 MAIN ST SOUTH GEORGETOWN ONT 3G2 fax 68734962