Thursday, January 22, 2009

Canadian Patch Industry "Flagging" Due To Obama Presidency

Despite indications that the suffering Canadian economy will emerge from its recession sometime in the latter half of this year, one industry appears to be on the brink of collapse with no hope in sight. For eight long years, the Bush Administration was a boon for Canadian flag patch production. American globetrotters, casual vacationers, and youth hostel enthusiasts bought Canadian flag patches in bulk, allowing the business to flourish in ways never before thought possible.

But ever since November 5th of last year, the industry has been hit hard and looks unable to recover.

"We were really pulling for a McCain/Palin victory, to tell you the truth," says Neil Vandermere, CEO of Maple Leaf Emblematiques, Canada's largest textile manufacturer of travel luggage accessories. "They would have been terrible for the world, of course, but it would have been really good for business."

In the wake of a stolen Presidential election, the squandering of the world's post-9/11 good will, and the illegal invasion and occupation of two Middle East countries, Americans were wary about world travel and eager to distance themselves from the troubling policies and deteriorating reputation of their home and native land. Whether it was unsafe to be an American abroad or just really embarrassing, fewer and fewer backpacks and duffle bags were adorned with the Stars & Stripes. In an attempt to be automatically identified as specifically "non-American," many travelers replaced their American flag patches with Canadian ones. The ruse was easy to keep up: speak English, talk about cold North American winters, denigrate the French, laud salmon and syrup. No one would suspect a thing. It was like being American, only with health care and without the imperialism.

"It was nearly impossible to get served in a bar or find a futon to crash on," recalls Rachel Price, a public relations director from Chicago, who spent the year after graduating college in 2003 traveling across Europe. "But as soon as I replaced the American flag on my LL Bean Phantom Sherpa 3000 Frame Pack with a Canadian one I bought in Prague, the absinthe just kept flowing. I also had a ton of unprotected sex."

It was a win-win situation for anti-Bush gadabouts and the Canadian flag patch industry. For a number of years, Maple Leaf donning Americans had it good. The dollar was strong and Tom Cochrane tapes were cheap. Europeans don't care too much for hockey, so difficult conversations rarely occurred.

"We'd never had it so good," reveals Jean Sebastien, inventory administrator at Montreal-based True North Banners, an online company specializing in embroidered flag patches. "With each new American gaffe, blunder, or scandal, our patches would fly off our shelves. Between WMD, Abu Ghraib, Scooter Libby and waterboarding, we couldn't restock fast enough. We'll miss the Bush years, that's for sure."

Shareholders in Canadian textiles have seen their stocks rise steadily over the past eight years. In early June of last year, shares hit their all time high when Hillary Clinton's Presidential bid came to an end. Analysts for the Canadian Stock Exchange anticipated an easy McCain victory in November and investors followed suit, pumping huge amounts of funding into making more and more Canadian flag patches. Though sales dropped off somewhat in the third fiscal quarter, they rebounded with the announcement of Sarah Palin as John McCain's running mate in early September. Once Joe the Plumber and Bill Ayers became stump speech staples, however, the growth projections began to look less and less viable.

"The American people's newfound belief in hope has hastened a change for our industry...and not in a good way," explains Sebastien.

Since Barack Obama's election, the need for Canadian flag patches has decreased significantly. "I guess there's just not the same demand anymore," explains Calgary Economist Adam Hawthorne. "The steps already taken to repair America's standing in the world signals the decline of feigned Canadian identity. We had a good run." While people who aren't American don't necessarily want to be, those that are appear to be less inclined to lie about it now that Obama's in the White House. With the new administration already moving hastily to restore civil liberties, human rights, the rule of law, and government transparency, it looks like its going to be a long, hard road ahead for companies like Emblematique and True North.

There have already been moves by the travel patch industry to request a substantial government bailout. Fears are mounting that if the Obama administration investigates past wrongdoing and actually prosecutes Bush officials (if not the former president and vice president themselves) for approving illegal wiretapping and authorizing torture, the industry may never bounce back as it faces bankruptcy, insolvency, and total liquidation.

"It's like people aren't ashamed of being American anymore. We didn't anticipate this. The only thing that'll turn this around for us is another illegal US attack on a foreign country," Vandermere says. "Some here are pulling for Iran, others have their fingers crossed for Venezuela."

"Maybe they'll bring back internment camps. That would be great for us."

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