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This is pretty neat considering it relates to people our age living in Canada (aka me!). The Canadian government, who have set a minimum wage of $9.60/h for youths and $10.50/h for those older than 18, have decided to subsidize part or all of the payroll given out by small business to their student employees. The purpose is to try and invest in student employees so that they get the work experience they need. Although not mentioned much in the article, minimum wage plays a big roll, as now it is the government paying for the wage they set themselves... perhaps there is a chance it will be changed in the future for this reason.

This article relates to government intervention in the form of increasing the minimum wage in some states. However, this increase was met with an increase in unemployment; which we also looked at. This unemployment is caused by a high price where supply is greater than demand, and the need for workers therefore decreases (increasing unemployment).

One topic we have discussed a lot in supply-side policy is the funding of education, and how increased funding can lead to more efficiency in the economy. However, after the Ontario budget, the government decided to freeze teacher wages to try to reduce funding in this education sector; which has created many problems in our province as teacher unions are now taking action, with the threat of a strike still being possible. Supply-side policy gone wrong.

This article concerns the fact that minimum wage for the UK will be raised by 11p; an increase of 1.8% from its current level. This change will affect aggregate supply in the short run (SRAS curve); as it will effectively increase the costs of production for all the firms in the industries of the economy. The result will be a shift to the left on the SRAS model.

This articles start out by talking about how Chinese support the world with cheap goods. However, prices are expected to go up as Chinese manufacturers run down with higher wages, more expensive raw materials and an growing currency. This article shows the increase of production cost and the effects it will cause, such as: having companies to opt out, or relocating their companies to other countries.

For decades, China's factories have supplied the world with cheap goods - from denim jeans to desktop computers. But export prices are expected to go up as Chinese manufacturers are battered by higher wages, more expensive raw materials and an appreciating currency.

because of the the high debts of europe, US export will mostly rise in 2012. In addition to this, the declining dollar index and rising wages of emerging economies has made U.S. goods cheaper abroad.