Wearing a blue Sprott School of Business scarf Eric Sprott helped celebrate the 10th anniversary of Carleton’s business school on Nov. 30 in Porter Hall.
The school was renamed in Sprott’s honour in 2001 after he made a $10 million donation, according to a press release.
As part of the celebration, Sprott, along with CFRA radio show host John Budden and Longwave Group president Ian Gordon, participated in a panel about the problems and solutions of the economic crisis.
The primary problem facing economies across the world is that the normal downturn in the global economy is being exacerbated by high levels of inflation, panellists agreed, adding that politicians are touting the high levels of inflation as a valid way to fight recession.
Economic phases are similar to the seasons of the years, Budden told attendees.
“In the spring phase, an economy is either born or reborn. In the summer, more debt is taken on until the autumn when the economy plateaus and the beginnings of a recession are felt,” he said.
“Currently, we are in the winter where the economy falters as economic players are forced into paying down debt rather than continuing to grow the economy.”
The recent struggles in Europe against debt problems will inevitably end in defeat, Gordon said, because the debt they have taken on is far too big.
Sprott said he agreed.
“Worldwide debt has grown by 12 per cent while actual growth in these economies has only grown by four per cent,” said Sprott, who graduated from Carleton with a commerce degree in 1965. “So we are out spending ourselves three to one.”
Sprott focused on the business students in the room, speaking about the problems in business schools across the globe.
Things that have been taught in the past and failed are still being taught, he said.
If Sprott students wish to thrive in economic downturn, Sprott offered a bit of advice.
Students should be pragmatic, not dogmatic, think independently, and be bold and take gambles, he said, adding they should always search for investment opportunities.
Second-year business commerce student Nicholas Pierson said he’s happy Sprott was present for the anniversary.
"I know talking to other students that they were very excited about Sprott coming . . . I mean, it means a lot for him to come back up here,” Pierson said.