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.
Sunday, March 8, 2009
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.
Monday, October 27, 2008
Chapter 2 Supply & Demand
Article: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/26/BUHH10S61B.DTL
Summary
The article I read is about how oil production is being overused. Since 2004, the oil prices have increased from $33 per barrel to $132. Production has increased by 1.8%, to 84.6 million barrels per day. These prices of oil will only continue to grow because the world population demands so much and it cannot keep up with our human desires. Due to the rising demand, oil companies would like to sell as much crude as they can. The Organization of the Petroleum Exporting Countries believes there is already enough oil in the market and states there is no need to pump more oil.
Connections
Connections from this article are supply and demand. As price increases, demand will decrease. If the price of a product raises, fewer people who want to buy it; therefore, the demand of the product will decrease. In the article above, the demand for oil was so high, the price had to increase because everyone needed it. When the supply of a product has a short amount, the price will increase because people would want to obtain the goods, but it would be difficult to obtain it since it is so limited. I believe the oil prices will only continue to increase, because we need oil for our daily lives. An example would be transportation. We need oil to help us get through our daily lives.
Reflections:
I believe that with the increase in oil, it will eventually cause people to stop demanding so much . In the future, if our demand for oil decreases, we are safe to say that the price will also decrease. The price will drop because there will not be a high desire and therefore the profit would not be as great. I believe the only way to reduce the price of demand is to find another alternative resource to depend on. We can then focus on the new resources and the demand and price of oil will decrease because no one will be interested in it anymore.
Summary
The article I read is about how oil production is being overused. Since 2004, the oil prices have increased from $33 per barrel to $132. Production has increased by 1.8%, to 84.6 million barrels per day. These prices of oil will only continue to grow because the world population demands so much and it cannot keep up with our human desires. Due to the rising demand, oil companies would like to sell as much crude as they can. The Organization of the Petroleum Exporting Countries believes there is already enough oil in the market and states there is no need to pump more oil.
Connections
Connections from this article are supply and demand. As price increases, demand will decrease. If the price of a product raises, fewer people who want to buy it; therefore, the demand of the product will decrease. In the article above, the demand for oil was so high, the price had to increase because everyone needed it. When the supply of a product has a short amount, the price will increase because people would want to obtain the goods, but it would be difficult to obtain it since it is so limited. I believe the oil prices will only continue to increase, because we need oil for our daily lives. An example would be transportation. We need oil to help us get through our daily lives.
Reflections:
I believe that with the increase in oil, it will eventually cause people to stop demanding so much . In the future, if our demand for oil decreases, we are safe to say that the price will also decrease. The price will drop because there will not be a high desire and therefore the profit would not be as great. I believe the only way to reduce the price of demand is to find another alternative resource to depend on. We can then focus on the new resources and the demand and price of oil will decrease because no one will be interested in it anymore.
Thursday, September 25, 2008
Chapter One
Article: "Waste must end, forest minister says" from The vancouver Sun, Section D Wednesday, September 17, 2008
Summary:
This newspaper article “Waste must end, forest minister says” from The Vancouver Sun discusses the issues in B.C concerning the industry and how logging companies plan to eliminate valuable tree resources. This article comments on Minister Pat Bell who plans to develop new bio-energy industry that will transform the way wood is used. Decision making is required for new regulations in order to remove barriers efficiently and effectively. Although logging companies are chopping down trees to use production of energy and goods, there are limits to the number of trees available to cut down. Right now in the economy, industry of bio-energy is not doing well as revenues and “[is] expected to plunge 36% this year”. Bell is aiming to give incentives to the loggers in the hopes that less waste can be left behind.
Connections:
An obvious connection in the article to the principles of Economics is scarcity. Economics is the study of scarcity because without it, the study of economics would not exist. In this article, trees are scarce resources available for loggers to cut down and use. In addition, decision making also links with chapter one such that the logging company has to make choices, form new regulations and economic policies that strengthen our economy. The opportunity cost of producing bio-energy in the industry can be the time and money spent on developing another efficient method of obtaining energy.
Reflections:
Economics seems to be a complex topic for one to fully understand. Although some of the key aspects and ideas may seem like common sense to me, there are complicated concepts that require deep thinking. After reading the article and the chapter, I realize that often times opportunity cost is not easy to identify. In this article, it is important for loggers to know the limited amount of resources that are available for them to use. Since trees are scarce goods, we, as rational persons, need to apply effective decision making and strategies that give us the lowest opportunity cost.
Summary:
This newspaper article “Waste must end, forest minister says” from The Vancouver Sun discusses the issues in B.C concerning the industry and how logging companies plan to eliminate valuable tree resources. This article comments on Minister Pat Bell who plans to develop new bio-energy industry that will transform the way wood is used. Decision making is required for new regulations in order to remove barriers efficiently and effectively. Although logging companies are chopping down trees to use production of energy and goods, there are limits to the number of trees available to cut down. Right now in the economy, industry of bio-energy is not doing well as revenues and “[is] expected to plunge 36% this year”. Bell is aiming to give incentives to the loggers in the hopes that less waste can be left behind.
Connections:
An obvious connection in the article to the principles of Economics is scarcity. Economics is the study of scarcity because without it, the study of economics would not exist. In this article, trees are scarce resources available for loggers to cut down and use. In addition, decision making also links with chapter one such that the logging company has to make choices, form new regulations and economic policies that strengthen our economy. The opportunity cost of producing bio-energy in the industry can be the time and money spent on developing another efficient method of obtaining energy.
Reflections:
Economics seems to be a complex topic for one to fully understand. Although some of the key aspects and ideas may seem like common sense to me, there are complicated concepts that require deep thinking. After reading the article and the chapter, I realize that often times opportunity cost is not easy to identify. In this article, it is important for loggers to know the limited amount of resources that are available for them to use. Since trees are scarce goods, we, as rational persons, need to apply effective decision making and strategies that give us the lowest opportunity cost.
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