Skip to main content

Home/ Fall 2012 Challenges Assignment/ Group items tagged Stagnate

Rss Feed Group items tagged

A SN

Tom Thorne's ejournal: Economic stagnation in US means whoever wins the US Presidential... - 1 views

  • The real threat to Canada is not who is in the White House but what they do about the mounting US Government debt now at $16 Trillion plus. To this point there is no will apparent to cooperate for a solution.
  • The real threat to Canada is not who is in the White House but what they do about the mounting US Government debt now at $16 Trillion plus. To this point there is no will apparent to cooperate for a solution.
  • The real threat to Canada is not who is in the White House but what they do about the mounting US Government debt now at $16 Trillion plus. To this point there is no will apparent to cooperate for a solution.
    • A SN
       
      Represents the real threat to Canada; USA's economic stagnation
  • ...8 more annotations...
  • The real threat to Canada is not who is in the White House but what they do about the mounting US Government debt now at $16 Trillion plus. To this point there is no will apparent to cooperate for a solution.
  • If the US literally prints its way out of its economic mess, the mess will be compounded. 
    • A SN
       
      Problems caused by overprinting money
  • Such an action is guaranteed to create inflation and a rise in interest rates charged to service the debt and also generally for business and lenders of all kinds.
  • Lenders will want more interest to cover the risk of carrying US Government debt loads expressed in diluted valued bonds and currency.
    • A SN
       
      The proves that the USA is in really bad debt.
  • Serious debt reduction is needed in the US Congress and Administration.  And there is very little wiggle room to cut US government expenditures. However failure to do so will mean in the middle range of time that the US will become more and more an economic lightweight and hence its world presence will be diminished. That is bad for Canada.
    • A SN
       
      If USA falls into a deeper economic stagnation Canada will be widely affected.
  • The US is making itself militarily and financially vulnerable. Canada, no matter how well we manage our financial affairs, will be forced into the same situation as our major trading partner.
    • A SN
       
      The US is losing it influence throughout the world. This is a problem.
  • It will be tougher for Canada to retain our natural resources.  Potential deals like the Chinese State taking over Nexen in our oil sands, will become more likely if we want to maintain our own economic performance independent of a financially errant US.
    • A SN
       
      problems caused by USA economic stagnation.
  • It really is time for the United States Government and its politicians to bite the economic bullet. Failure to do so means a downsizing of the United State’s influence on the world stage and that can only mean that Canada will need a more independent economic policy as China grows in influence. In short the lack of action on the economic front by our major trading partner is taking us more to Europe and into the arms of the Chinese Government’s hegemony.
    • A SN
       
      The consequences if the USA does not change.
  •  
    Questions: 1. Do you think that eventually Canada will have no choice but to sell its natural resources to the other world powers? Can this be a good change? 2. Canada and the USA share a lot of history and do a lot of activities together, do you think that being financially independent will make us rely less on the US ?
JJ Igra

'Dead' cash to blame for Ontario's stagnant growth, task force warns - 2 views

  •  
    "A new status quo of slow or stagnant economic growth for Ontario's economy is developing," warns the Task Force on Competitiveness, Productivity and Economic Progress. "If economic growth languishes at less than 2 per cent annually, everything from government funding and programs to private sector competitiveness and employment will be impacted." The issue of dead money surfaced this summer when Bank of Canada Governor Mark Carney said Canadian companies are sitting on cash when they should be investing or returning it to shareholders - comments that sparked an avalanche of criticism from economists and executives. Canada's relative stability should make businesses more willing to invest. Instead, they are sitting on large cash reserves. Ontario's GDP per capita ranks 14th among 16 North American peer jurisdictions and lags the median of the peers by $7,500 Roger Martin, chairman of the task force and Rotman School of Management dean, in a release. "But the gap in GDP per capita with North American peers shows that Ontario needs to move now to push for more growth." Dead money could be used "to invest in the physical and human capital we need to increase our productivity and close the prosperity gap," he added. Key Concepts: GDP- gross domestic product Stagnate- Showing no activity; dull and sluggish: "a stagnant economy".
  • ...2 more comments...
  •  
    Questions: 1) What incentives can the government provide for businesses to invest in other company's? 2) Do you think the government should intervene more or should they let those company's do their own decision making?
  •  
    1) Subsidies so that businesses will be willing to take a risk and invest in other companies. 2) Canada is a mixed economy. Government should intervene if the situation is critical but it should also be up to companies to make the rational decision for their company. Netan
  •  
    1) A crazy one would be to not corporate tax, them, if only for the beginning. Maybe subsidies the companies the government wants businesses to be involved in, and to be willing to invest into.
  •  
    2.I think the government should not intervene in the decisions different companies make unless it greatly affects the country's economy.
Samson Luong

Brazil economy surprisingly weak, adds to global fears - The Globe and Mail - 0 views

  • Brazil has been stuck in a pattern of slow growth since Ms. Rousseff took office last year, as companies struggle with high costs and severe infrastructure and labour bottlenecks. Ms. Rousseff has tried to revive activity with numerous tax cuts and other stimulus, but Friday’s data showed that companies are not responding, as investment fell for a fifth straight quarter.
  • Friday’s data renews concerns that its slow growth is not a cyclical issue, but the result of deeply rooted structural problems after strong growth of the previous decade.
  • The measures that the government imagined would be capable of bringing Brazil out of the global crisis weren’t enough
  • ...3 more annotations...
  • Data indicates that many consumers have reached their debt limit, despite a massive year-long cycle of interest rate cuts, leaving few other strong motors to power Brazil’s $2.5-trillion economy.
  • far deeper changes to Brazil’s restrictive labour laws as well as its complex and onerous tax code, which many companies say makes investment prohibitively expensive.
  • Ms. Rousseff has won some plaudits from foreign investors for efforts to address Brazil’s supply-side bottlenecks
  •  
    Questions 1. What effects will interest rate cuts and expanding consumer credit have on Brazil's economy? 2. Would allowing the private sector to build and operate airports, highways and cutting electricity costs be good for Brazil's economy? Why?
  •  
    1- It might cause an economic recession. 2- It will be beneficial as long as there isn't one company operating all these areas(monopoly power) which leads to a market failure. It will bring money to the private sector. Netan
tyler wiliams

Income inequality rising quickly in Canada - 1 views

  •  
    From the mid 1990's - late 2000's Canada had the fourth largest increase in income inequality among it's peers. Income inequality, along with corruption, were named as the two most serious challenges facing the world at this year's World Economic Forum in Davos. the impact of the growing income gap has gather little attention in Canada market forces and globalization are increasing disparity, along with institutional shifts such as dwindling unionization rates and stagnating minimum wages.
ShiyuandCristina SC

Rich-poor gap could spark financial crisis in Canada: Report | Money | Toronto Sun - 1 views

  • The gap between the rich and the poor in Canada is getting wider and could eventually lead to an economic collapse, according to a new report by a left-wing think-tank.
  • Income for middle-class Canadians has remained stagnate since the 1980s, while the income of the richest 1% has increased dramatically
  • When the rising savings of the rich are parked in the financial markets, but everyone else falls deeper into debt, a house of cards is created, producing the kind of economic instability that led to the 1929 financial sector crash and the market meltdown of 2008."
  • ...1 more annotation...
  • As a result, Canada's income inequality has reached a level not seen since the 1920s, says Canadian Centre for Policy Alternatives.
  •  
    The problems created by income inequality in Canada could possibly lead to a financial crisis. 
1 - 5 of 5
Showing 20 items per page