http://toronto.ctv.ca/servlet/an/local/CTVNews/20090323/Suncor_merge_090323/20090323/?hub=TorontoNewHome
Suncor Energy Inc and Petro Canada have merged into one company to be better positioned to compete in the economic uncertainty. Once merged, they will become the largest energy company in Canada. Suncor will have a bigger company percentage with 60% and Petro Canada with 40%. After merging, it has been stated that “it’s more than just a strategic fit and the companies will share common ground with their corporate visions.”Through elimination of redundant spending capital budgets for high returns, each company is expected to save about one million.
The main connection between this article and chapter 10 is partnership. Suncor Energy Inc and Petro Canada were two individual companies which joined together as one. Although, the companies have merged, each company has their own shareholders and workers. Profits are expected to be gained because expenses would be cut off. Both Suncor and Petro Canada are expected to save 1 million.
I think merging companies can lead to benefits. The positive side to this is the company will now have a better chance to compete in the economic recession just like it mentioned in the article. They are the largest energy company in Canada and the 5th largest in North America. I think that after merging, the company will have a better reputation and will have a long term benefit. However on the other hand, it could lead to lay-offs and many other negative down sides. There will be more lay-off workers because due to merging.
Thursday, June 11, 2009
Thursday, May 7, 2009
ch 8
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090420/battle_lines_090420/20090420?hub=Politics
Summary
The following article talks about Canada losing 300,000 jobs in first 3 months of 2009 which is the worse crisis in employment. Federal liberals are accusing Conservative government for not helping out after mismanaging the economy. According to Transport Minister John Baird, increasing taxes will kill jobs no matter how much they encourage more jobs or opportunities. As both sides argued, Conservative responded by spending billions of dollars to increase and improve the economic stimulus programs. However, the Liberals’ leader Michael Ignatieff wants to raise taxes so that it can eliminate the debt of conservative has caused. He claims this would be the last option after the economy is improved from the recession.
connection:
One of the main connections between this article and the chapter is fiscal policy. The definition from the textbook is defined as employ changes to the level of government spending and ttaxation with the goal of influencing economic conditions. According to the article, the government had to increase spending in order to create more job opportunities. The liberals are trying to raise the taxes to make up for the economy recession.
Reflections:
I think raising taxes isn’t a good thing for citizens because it would mean earning less money from their jobs. But on the other hand it is needed to help improve the economy. I think that Liberal Leader Michael Ignatieff has a right to argue with the conversative because they were the ones who mismanaged the economy. I think the increase in government spending and taxes should have been done longer time ago instead of waiting until this crisis worsen. If actions were taken place earlier, we wouldn’t be in such a big economy recession.
Summary
The following article talks about Canada losing 300,000 jobs in first 3 months of 2009 which is the worse crisis in employment. Federal liberals are accusing Conservative government for not helping out after mismanaging the economy. According to Transport Minister John Baird, increasing taxes will kill jobs no matter how much they encourage more jobs or opportunities. As both sides argued, Conservative responded by spending billions of dollars to increase and improve the economic stimulus programs. However, the Liberals’ leader Michael Ignatieff wants to raise taxes so that it can eliminate the debt of conservative has caused. He claims this would be the last option after the economy is improved from the recession.
connection:
One of the main connections between this article and the chapter is fiscal policy. The definition from the textbook is defined as employ changes to the level of government spending and ttaxation with the goal of influencing economic conditions. According to the article, the government had to increase spending in order to create more job opportunities. The liberals are trying to raise the taxes to make up for the economy recession.
Reflections:
I think raising taxes isn’t a good thing for citizens because it would mean earning less money from their jobs. But on the other hand it is needed to help improve the economy. I think that Liberal Leader Michael Ignatieff has a right to argue with the conversative because they were the ones who mismanaged the economy. I think the increase in government spending and taxes should have been done longer time ago instead of waiting until this crisis worsen. If actions were taken place earlier, we wouldn’t be in such a big economy recession.
Monday, April 27, 2009
CH 7 canadian banking system
Article: http://www.vancouversun.com/business/fp/Central+bank+right+hold+monetary+policy+reserve/1533427/story.html
Summary:
Central banks are not in any hurry into “printing money” which is also referred to as quantitative easing. Central banks are trying to encourage financial institutions that large payments will be established and will increase the supply of credit towards households and businesses. According to the monetary policy report, central banks are increasing the overnight rate which had been reduced by 425 basis points since December 2007. Central bank has the right to wait for monetary policy to take action because as of now it is unclear if there is any impact. If there is anything that could bring recession to an end, it would be spending, investing, lending and borrowing. Those, however, haven’t been seen much recently.
Connections:
The main connection this article and the chapter have in common is monetary policy. It is a process taken in which the government, central bank or any monetary authority has control of a country’s money supply. According to the article, the monetary policy has been approved that the rate will reach a new limit of effectiveness, which was previously reduced by 425 basis points. The supply of money will be altered by the changing interest rates, and the economic condition is the rate of inflation.
Reflections:
I think it is very important for the Bank of Canada to maintain control over the country’s money supply. It is a necessary step for the government in order for the country to build and grow. If there are no changes, the country will only remain the same state as it is. People tend to save money instead of spend as much during the recession times but the inflation rate will only continue to increase. However, in order to stop recession, people would have to spend, invest, lend, and borrow again. Even if economic problem is affecting countries around the world, Canadian Central Bank is trying to prevent any further problems as it continue to try and fix this economic problem.
Summary:
Central banks are not in any hurry into “printing money” which is also referred to as quantitative easing. Central banks are trying to encourage financial institutions that large payments will be established and will increase the supply of credit towards households and businesses. According to the monetary policy report, central banks are increasing the overnight rate which had been reduced by 425 basis points since December 2007. Central bank has the right to wait for monetary policy to take action because as of now it is unclear if there is any impact. If there is anything that could bring recession to an end, it would be spending, investing, lending and borrowing. Those, however, haven’t been seen much recently.
Connections:
The main connection this article and the chapter have in common is monetary policy. It is a process taken in which the government, central bank or any monetary authority has control of a country’s money supply. According to the article, the monetary policy has been approved that the rate will reach a new limit of effectiveness, which was previously reduced by 425 basis points. The supply of money will be altered by the changing interest rates, and the economic condition is the rate of inflation.
Reflections:
I think it is very important for the Bank of Canada to maintain control over the country’s money supply. It is a necessary step for the government in order for the country to build and grow. If there are no changes, the country will only remain the same state as it is. People tend to save money instead of spend as much during the recession times but the inflation rate will only continue to increase. However, in order to stop recession, people would have to spend, invest, lend, and borrow again. Even if economic problem is affecting countries around the world, Canadian Central Bank is trying to prevent any further problems as it continue to try and fix this economic problem.
Sunday, March 8, 2009
CH 6
article: http://www.economist.com/displaystory.cfm?story_id=13248177
Summary:
This article that I’ve read talks about how the bank of England handles the effects of recession. The central bank lowered the interest rate thus bringing the base rate to 0.5% on March 5th. Bank of England then announced setting up “quantitative easing” which can give another way to enhance the economy. “Quantitive easing” is a new method that helps prevent deflation and can lower interest rate for easier use and increase money supply. Consumer-price inflation has decreased from 5.2% of commodity last 3% and now the central bank expects that GDP will decline further by the end of 2009. This is the lowest decline over many years. With the new method, Central bank will try to save their falling economy.
connections:
The main connection to our chapter 6
is Gross Domestic Product (GDP). GDP refers to the value of goods and services produced by one country in one year. By lowering GDP, it would also lower the employment rates of inflation. Vise Versa, increasing GDP would increase employment and increase prices. In this article, the bank of England is trying to lowering employment rates and interest rates to prevent a falling economy thus lowering their GDP. Another connection would be full employment level of GDP. In the article, by lowering GDP, it meant employment rates of inflation, and some workers would be unemployed.
Reflections:
I believe at this time of recession, just by lowering interest rates of employments rates would not make huge changes to the recession. I’ve read other articles about countries recession, and it appears GDP is expected to worsen. Many countries are beginning to fall due to the lower dividends and interest rates. If there is a further decrease in employment, I think it would lower the GDP thus causing more unemployment. With this in mind, I think the only way to prevent the economy from further unemployment is to create more employment opportunities. This way it can strengthen countries’ economy.
Summary:
This article that I’ve read talks about how the bank of England handles the effects of recession. The central bank lowered the interest rate thus bringing the base rate to 0.5% on March 5th. Bank of England then announced setting up “quantitative easing” which can give another way to enhance the economy. “Quantitive easing” is a new method that helps prevent deflation and can lower interest rate for easier use and increase money supply. Consumer-price inflation has decreased from 5.2% of commodity last 3% and now the central bank expects that GDP will decline further by the end of 2009. This is the lowest decline over many years. With the new method, Central bank will try to save their falling economy.
connections:
The main connection to our chapter 6
is Gross Domestic Product (GDP). GDP refers to the value of goods and services produced by one country in one year. By lowering GDP, it would also lower the employment rates of inflation. Vise Versa, increasing GDP would increase employment and increase prices. In this article, the bank of England is trying to lowering employment rates and interest rates to prevent a falling economy thus lowering their GDP. Another connection would be full employment level of GDP. In the article, by lowering GDP, it meant employment rates of inflation, and some workers would be unemployed.
Reflections:
I believe at this time of recession, just by lowering interest rates of employments rates would not make huge changes to the recession. I’ve read other articles about countries recession, and it appears GDP is expected to worsen. Many countries are beginning to fall due to the lower dividends and interest rates. If there is a further decrease in employment, I think it would lower the GDP thus causing more unemployment. With this in mind, I think the only way to prevent the economy from further unemployment is to create more employment opportunities. This way it can strengthen countries’ economy.
Wednesday, February 25, 2009
chapter 5 Economic Indicators
http://www2.canada.com/news/canada+economy+loses+jobs+january/1260456/story.html?id=1260456
Summary:
Canada’s economy had lost approximately 129,000 jobs in the month of January which causes the unemployment rate increase from 6.6% to 7.2%. The Canadian Press reports were expecting a much better unemployment rate result like 40,000 but the limit far exceeded that prediction. This decline in employment rate is by far the worst monthly drop over the past couple of years. The majority of manufacturing jobs were lost in Ontario, a drop of 36,000 positions. Another province that followed shortly was Quebec at 30,000 positions. Employment also fell in transportation and warehouse, losing about 30,000 jobs. Ontario losing so many positions is the province’s largest decline in over three decades.
Connections:
A main connection between article and chapter five is unemployment rate. The term is defined as the percentage of labour force that is not working but is looking for work. In this article, Ontario has a high percentage of unemployment rates with about 36,000 lost positions. One of the reasons why the unemployment rate is so low is because it comes from the lost jobs from employment in manufacturing where the total amount was 101,000. The employment probably did not require so many workers. In order to calculate the percentage of the unemployment rate, the following formula must be used:
Unemployment rate = unemployed / labour force
Reflections:
I find it hard to believe how the unemployment rate increased so much in January. If there is no changes soon made, recession would only look like it would continue to worsen as it grows deeper. The government should promote more job opportunities such as big projects like buildings. For one, this can help those jobless people work again, and second it can make Canada a better looking country. For example: I think there could be more transportation vehicles like buses or sky trains which can enhance our community and make Vancouver look more cleaner with less polluted air. On the other hand, it also makes Canada look like the economy is growing and strengthening.
Summary:
Canada’s economy had lost approximately 129,000 jobs in the month of January which causes the unemployment rate increase from 6.6% to 7.2%. The Canadian Press reports were expecting a much better unemployment rate result like 40,000 but the limit far exceeded that prediction. This decline in employment rate is by far the worst monthly drop over the past couple of years. The majority of manufacturing jobs were lost in Ontario, a drop of 36,000 positions. Another province that followed shortly was Quebec at 30,000 positions. Employment also fell in transportation and warehouse, losing about 30,000 jobs. Ontario losing so many positions is the province’s largest decline in over three decades.
Connections:
A main connection between article and chapter five is unemployment rate. The term is defined as the percentage of labour force that is not working but is looking for work. In this article, Ontario has a high percentage of unemployment rates with about 36,000 lost positions. One of the reasons why the unemployment rate is so low is because it comes from the lost jobs from employment in manufacturing where the total amount was 101,000. The employment probably did not require so many workers. In order to calculate the percentage of the unemployment rate, the following formula must be used:
Unemployment rate = unemployed / labour force
Reflections:
I find it hard to believe how the unemployment rate increased so much in January. If there is no changes soon made, recession would only look like it would continue to worsen as it grows deeper. The government should promote more job opportunities such as big projects like buildings. For one, this can help those jobless people work again, and second it can make Canada a better looking country. For example: I think there could be more transportation vehicles like buses or sky trains which can enhance our community and make Vancouver look more cleaner with less polluted air. On the other hand, it also makes Canada look like the economy is growing and strengthening.
Friday, January 23, 2009
Chapter 4 Government in Canada
article: http://www.canada.com/theprovince/news/story.html?id=19c0eab5-07e6-4036-8f3a-40d43966dba2
Summary
The article I read discusses about the issue of carbon taxes and how the BC government plans to make new adjustments to combat climate change. Finance Minister Carole Taylor considers taxing as a way to cut down the usage of burning fossil fuels but before that, she says she’ll try to figure out how a carbon tax would work in the economy. Furthermore, there would be more tax incentives to pick a greener lifestyle and reduces the energy. University of B.C economist David Green states “if we increase the price of goods and fuels that pollute, less people would use them.” Carbon taxes have been one of the supporting energy conservation. Taxes could then be put on fuels or either built into the prices of goods that use carbon in the manufacturing process.
Connections:
I think the main connection of this article to our economic textbook is the benefits-received approach. B.C Government requires people to be taxed on the basis of the benefits that they will receive from the government. In the article, the government of B.C plans to increase carbon taxes in order to change the climate. This may not be a benefit to people who pay, but it is a benefit to the society. Another connection is direct taxes. Money is collected from the government which will then be put into good use such as creating a better environment.
Reflections:
I believe the government has done the correct thing by putting carbon taxes. It makes Canada look more cleaner with less polluted air. By increasing carbon taxes, it would be a benefit to the society because the government would reduce the carbon emissions and this might prevent global warming. It will increase the wellness of the society since the air is much fresh. Increasing Carbon taxes would hopefully cause people to find other solutions to get the job done. For example, people these days really depend on cars as their transportation. With the increase on taxes, people might consider taking buses, biking, or walking instead of cars.
Summary
The article I read discusses about the issue of carbon taxes and how the BC government plans to make new adjustments to combat climate change. Finance Minister Carole Taylor considers taxing as a way to cut down the usage of burning fossil fuels but before that, she says she’ll try to figure out how a carbon tax would work in the economy. Furthermore, there would be more tax incentives to pick a greener lifestyle and reduces the energy. University of B.C economist David Green states “if we increase the price of goods and fuels that pollute, less people would use them.” Carbon taxes have been one of the supporting energy conservation. Taxes could then be put on fuels or either built into the prices of goods that use carbon in the manufacturing process.
Connections:
I think the main connection of this article to our economic textbook is the benefits-received approach. B.C Government requires people to be taxed on the basis of the benefits that they will receive from the government. In the article, the government of B.C plans to increase carbon taxes in order to change the climate. This may not be a benefit to people who pay, but it is a benefit to the society. Another connection is direct taxes. Money is collected from the government which will then be put into good use such as creating a better environment.
Reflections:
I believe the government has done the correct thing by putting carbon taxes. It makes Canada look more cleaner with less polluted air. By increasing carbon taxes, it would be a benefit to the society because the government would reduce the carbon emissions and this might prevent global warming. It will increase the wellness of the society since the air is much fresh. Increasing Carbon taxes would hopefully cause people to find other solutions to get the job done. For example, people these days really depend on cars as their transportation. With the increase on taxes, people might consider taking buses, biking, or walking instead of cars.
Sunday, November 23, 2008
ch.3 role of Government in a market economy
http://hbswk.hbs.edu/item/5645.html
summary
Healthcare is becoming a big issue in US. US. Healthcare currently costs approximately $2 trillion each year. However, the amount that the government receives does not entirely all go towards healthcare. 31% of that amount goes towards administration instead of going towards people who need healthcare. On top of that, the healthcare leaves over 40 million Americans without insurance either because they are not employed or have very low incomes. More than half of 98$ billion administrative costs goes for insurance companies but doesn’t include cost of doctors and hospitals. If there are no changes made to fix these problems, US could have economic impact.
Connections
According to the chapter, a connection would be excise tax. If the excise tax increases the price of healthcare such as medicine, it would shift the supply curve upwards but not necessarily shift the demand curve down. The demand would still remain high since healthcare is an important issue. Another connection would be third party effects. Illness will be less likely to spread if people in the neighbour are guaranteed at least a level of care. A negative effect would mean the producers of healthcare would be losing their profit as the people among the population will be gaining a benefit such as less paying for medicine.
Reflections
i think there needs to be changes made for Healthcare because it costs 2 trillion a year but 31% doesn’t go towards it. This could make a difference for those people who really need to see doctors or afford paying for medicine. There is a major concern for those people who have low income. They will not be able to afford adequate health care. The government should place an appropriate price ceiling which can help those individuals who can not pay adequate treatment. Moreover, I think the excise tax should be lowered, because healthcare is such an important part of everyone’s lives. It is not like alcohol or cigarettes, so it’s only fitting to low the tax so that people would not have to worry about the income.
summary
Healthcare is becoming a big issue in US. US. Healthcare currently costs approximately $2 trillion each year. However, the amount that the government receives does not entirely all go towards healthcare. 31% of that amount goes towards administration instead of going towards people who need healthcare. On top of that, the healthcare leaves over 40 million Americans without insurance either because they are not employed or have very low incomes. More than half of 98$ billion administrative costs goes for insurance companies but doesn’t include cost of doctors and hospitals. If there are no changes made to fix these problems, US could have economic impact.
Connections
According to the chapter, a connection would be excise tax. If the excise tax increases the price of healthcare such as medicine, it would shift the supply curve upwards but not necessarily shift the demand curve down. The demand would still remain high since healthcare is an important issue. Another connection would be third party effects. Illness will be less likely to spread if people in the neighbour are guaranteed at least a level of care. A negative effect would mean the producers of healthcare would be losing their profit as the people among the population will be gaining a benefit such as less paying for medicine.
Reflections
i think there needs to be changes made for Healthcare because it costs 2 trillion a year but 31% doesn’t go towards it. This could make a difference for those people who really need to see doctors or afford paying for medicine. There is a major concern for those people who have low income. They will not be able to afford adequate health care. The government should place an appropriate price ceiling which can help those individuals who can not pay adequate treatment. Moreover, I think the excise tax should be lowered, because healthcare is such an important part of everyone’s lives. It is not like alcohol or cigarettes, so it’s only fitting to low the tax so that people would not have to worry about the income.
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