Econ Challenge Assignment

U.S. economists Kenneth Rogoff and Carman Reinhart believe the danger point is a debt-to-GDP ratio in excess of 90 per cent.

Japan, Italy and the United States would appear to be the most at risk.

The PBO is projecting growth of only 1.9 per cent in 2014, which is significantly less than the 2.5 per cent average of numbers from private sector forecasters that Finance is using to support Ottawa’s budget numbers.

The PBO report notes that the combined spending cuts in the 2012 and 2013 budgets, coupled with other savings measures, mean Ottawa is cutting more than $7-billion a year by 2014-15, a figure that will rise to $11.5-billion in 2017-18.

for 2015-16, the year the Conservatives are promising a return to balanced books, the government says there will be a surplus of $0.8-billion. The PBO largely agrees, forecasting a $3.7-billion surplus for that year.

Union leaders reported that just over 5,000 employees in more than 13 departments were told they could lose their jobs as the government seeks to slash spending.

More than 1,400 employees at Service Canada were notified Wednesday that they may lose their jobs. At the Fisheries Department, also being overhauled by the budget, over 300 employees were told their jobs were at risk.

Altogether, the federal budget forecast over 19,000 positions will be eliminated as part of the drive to cut $5.2 billion in program spending.

The prime beneficiaries were the financial institutions: banks and mortgage insurers.

The Canadian Centre for Policy Alternatives (CCPA) supports their findings, further arguing that the green economy has greater potential for long-term job growth than the oil and gas industry. Like the National Round Table on the Environment and the Economy, the CCPA outlines specific ways that the federal government can act to stimulate green economic growth and promote well-paying green jobs.

The cuts to departments are weighted so that about 40 per cent of the cuts occur in 2014-15.

budget also announced a number of other changes that will impact public servants, including:The elimination of severance benefits for voluntary resignation and retirement. So far these have already been eliminated for about 230,000 federal employees.The closure of the Advanced Leadership Program within the Canada School of Public Service.The introduction of new office space standards at Crown-owned and federal government occupied buildings.

he region has a total trade growth of 3%, second highest growth behind the United States. However, the dominance of the United States in Canada's trade patterns is clear, as even a small percentage change in magnitude is much larger in dollar terms than double-digit percentage changes in other markets.Canada’s Trade with the World, by Region 2012(C$ millions) Exports% ChangeImports% ChangeTrade% ChangeUS315,4313.4232,8305.5548,2624.3Asia/Oceania46,963-0.995,0465.2142,0083.1Europe41,529-5.463,836-1.2105,365-2.9Latin America12,8860.342,282-1.955,168-1.4Other10,2614.327,9330.538,1941.5       Total427,0701.9461,9273.5888,9972.7

Almost two-thirds of Canadians are worried that the impending U.S. fiscal cliff will hurt the Canadian economy, according to a survey commissioned by Sun Life Financial.

On average, 48 per cent are optimistic about the economy in 2013, with 26 per cent feeling pessimistic.

The percentage of folks feeling gloomy about the outlook for next year jumps to 31 per cent in Ontario and 28 per cent in Quebec.

fiscal cliff is "a sharp rise in taxes and deep cuts in federal spending" set to automatically take effect in January unless the U.S. Congress acts.

Buried within the $600 billion in cuts and taxes are reductions to the U.S. defence budget, changes to Medicare allowances and higher personal taxes. Even some child support and income credits for the poorest Americans are set to end.

And Finance Minister Jim Flaherty warned Wednesday that failure to reach a deal before Jan. 1 will plunge the United States into a recession quickly, with Canada to follow shortly afterward.

Spending growth is forecast to average 2.1% over the next five years, after rising about 26%, or 4.9% a year, since 2007.

G7 country with a stable AAA debt rating

Instead, he is zeroing in on the $120 billion Canada’s government spends on operating and capital expenses, which is less than half of total program spending.

hursday’s fiscal plans include about $600 million worth of additional savings from government over five years.

Measures to bolster growth will cost $6.9 billion from 2012 to 2017, including a two-year extension on a temporary tax break and new direct funding for manufacturers who have been hardest hit by the global slowdown.

Still, revenue is being hampered by a slumping global economy, with the government reducing its growth forecast for this year to 1.6%, compared with a 2% November projection. Combined with lower commodity prices, that will reduce revenue projections by $14.8 billion between 2012 and 2017, before new measures in the fiscal plan.

Closing tax loopholes will generate another $4.4 billion in revenue over five years, while the government expects to generate an additional $2.4 billion from more aggressive efforts to catch tax evaders

rop to 5.8% of GDP in 2015 from 6.7% in 2012. That will decline further to 5.5% by 2017, near the lowest in 50 years.

total employment has increased by more than 950,000 jobs

Non-financial companies held a record $600 billion of currency and deposits in the fourth quarter, up from $434 billion in mid-2009 as the last recession ended, according to Statistics Canada.

Flaherty this year is reallocating existing funding to begin financing grants of $15,000 for job training, to be jointly funded by provincial governments and employers.

U.S. politicians need to get to work quickly on putting together a fiscal compromise that will avoid an economic crisis.

US$600-billion in tax cuts and spending beyond Dec. 31.

Speaking in Ottawa, Flaherty says finding compromise won’t be easy for American politicians, but he pointed out that the Har

er government was able govern for five years as a minority, so it can be done.

TSX, has fared better.

13 per cent higher