Group items tagged

1. Despite receiving warnings about Canadian debt issues , it turns out that the average credit card debt has actually decreased by one percent while the year-over-year auto loans are now the main driving force behind the overall growth of our debt, why do you think this is happening? 2. Thomas Higgins, TransUnion's vice-president of analytics and decision services said that he believes the reason why consumers continue to ramp up debt is due to the media spreading overly positive news regarding the economy and throwing the readers into a state false optimism. Do you believe this is the case and why?

Youth unemployment is high because of little or no job experience, type of major isn't in demand, and not knowing how to sell oneself, which causes problems like 20 year old people living with their parents

Canadian government article advising consumers about debt, such as recognizing danger signs, various methods to deal with it, and information on declaring bankruptcy in case consumers are unable to pay off their debts.

Questions 1. Why does this article relate to economics? Honestly, why should we as economists really care about this matter? 2. Inequality is not only found in America, so how can American inequalities be compared to other inequalities found in the world? (This can include gender, race, geographical location, history, and more)

1. This article relates to economics because it discusses red and blue inequalities that exist and these are economic principles that economists need to pay attention to. The economy is based on efficiency and in order to be efficient economists have to take into consideration all types of inequalities that exist 2. An inequality is an unequal difference between two things, this article recognizes the inequality between the rich and the poor, or as they call it the red and blue inequality. Another type of inequality is gender inequality. In some countries girls are not allowed to go to school with the boys, and girls typically don't have the same rights as boys.

Discussion Questions: 1. Why should a widening financial income gap be concerning to the economy? 2. What are the economic differences of the baby boomer's generation (1940's-1960's) and the current generation? Do you think these differences affected the education requirement of today's jobs?

1. Is it fair and better for organic food "businesses" to undergo their own inspections or should the government be responsible for our food safety? 2.The market failure mentioned in this article is an informature market failure. The definition of an informature market failure is when one side of the market has more information than the other. What are some visible solutions to this market failure?

* It is not fair for organic food companies to inspect their own products since they will obviously never reveal anything bad that could potentially damage the company. It would be like a student marking his own quiz or test, they would do anything they could to benefit their mark. This is why governments should be responsible for our food safety. * A visible solution would be that companies must to share all the information they are aware of with the consumers.

1. It would not be the best idea for businesses to inspect their own food because there is a high possible margin of bias and committing unethical acts such as labeling their foods safe when they aren't are likely to occur. The government should be responsible because they would inspect each business in the same manner without bias and utilize the same procedures, ensuring fair inspections. 2. Visible solutions to this market failure would include sharing product information and inspection information to all producers and consumers.

This article talks about how the government is doing very good with reducing the inequality with the tax cuts and all but that they could be more aggressive. It's suggesting that we need a new redistribution plan but mainly focuses on what it counts to be the most important thing in getting rid of the debt, the governments role in all this. Asks questions like what if the government had made different decisions. 

Many employers understand that the recession may worsen some parts of the resume, but they are sympathetic and some ways to better your chances are to take temporary assignments, take a class and volunteer when unemployed

The article talks about how inequality may have decreased worldwide but it is increasing more and more in specific countries, Canada has fairly high inequality and there are propositions to tax the rich or redistribute income using other strategies. 

Most of the income gains of the past three decades, the report argues, were realized by only wealthy Canadians. The paper suggests that social and economic rights be added to the Charter of Rights and Freedoms alongside Canadians' political and civil rights, in order to fulfil its "security of the person" provision. For every dollar increase in national earnings over the last 20 years more than 30 cents have gone to the top one per cent while the remaining 70 cents have been shared across the other 99 per cent of Canadians. The final section of the report is prescriptive, outlining several ways to combat growing income equality: -Good jobs: changes to economic policies to promote the growth of middle-class jobs, including trade and foreign investment policies that protect labour rights and environmental standards and strong investments in child care, public education and skills training. -Income supports: changes to the government programs targeted at low-income Canadians and those in short-term need, such as employment insurance, Old Age Security, the Canada Pension Plan, provincial welfare systems and other income supports and tax benefits targeted at low-income families with children and the working poor. -Expanding public services: the report argues that for the majority of Canadians public services are a good deal; The value of education, health care, child care and other public services annually exceeds the taxes paid by middle-class and low-income Canadians. At the same time, some reforms are needed, it acknowledges. -Fair taxes: changes to Canada's tax system are necessary, it argues, pointing out Canada's taxes as a share of national income (31 per cent) are below the average of the world's industrialized countries (34 per cent), squeezing funding for public services.

1) Which proposal do you think is better? More cuts or more taxes 2) Do you think that going off the "cliff" is less detrimental than picking the other parties proposal?

1.) More taxes because people in the lower bracket income won't get affected as much. Thus, not further hardening their way of life. 2.) No. they believe the measures negatively affect them. It would affect defense spending, domestic spending and taxes negatively. All the citizens of america will get affected. No exceptions.

1. I believe more taxes would benefit the economy more because it would be geared more towards the higher income earners that have the foundation to deal with the taxes opposed to the lower incomes earners that already struggle. 2. Not exactly because going off the "cliff" affects several important factors such as federal tax, boarder tax, domestic spending, etc. Thus, it would seem that going off the "cliff" serves the economy and citizens more negatively than siding with the other parties' proposal.

1. Can you use the economic concepts to explain what is happening in the rare earth market? (Hint: Supply and Demand determinants, the relationship of supply and demand etc. Feel free to use other concepts.) 2. Can you explain what type of interventions the government is using to solve the negative externalities in this case. What may happen in the market as a result?

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 ?

Q1: Do you think putting up their uninhabited islands is a good recompensation method in case Greece doesn't pay off their loans and are the Germans indebted to Greece for their misactions during World War 2? Q2: Do you think Greece should be toughening it's austerity measures even though it might mean increasing Greece's current unemployment rate?

1. If Greece's economic situation worsens I believe putting up their uninhabited islands would be a great way to compensate because they are likely to be worth a lot and currently are not being used. 2. In my opinion, I feel Greece's unemployment rate is at a very risky point and doing anything to further detriment that would be unwise.

The average public servant costs taxpayers $114,100 a year in total compensation. "Total compensation (per full-time employee) in the federal workforce outpaced not only CPI (inflation), but also that of the Canadian business sector and provinces and territories over the study period," the report states. Although the government has recently announced new restraint measures that will cut the number of public servants, the PBO estimates that average compensation for salaries and benefits will reach $129,800 in the next three years. Canadian Taxpayers Federation federal director Gregory Thomas said he found some of the numbers "staggering," particularly since average household income growth is in the neighbourhood of one per cent. "This government has been in office for six years, you wonder when are they are going to get serious about controlling payroll costs," he said. Ottawa recently announced it has already shed about 11,000 in the first six months of the program. When the current austerity measures are completed, the public service will decline to 349,000, if Ottawa sticks with the program. "The period between 2012-13 and 2014-15 resembles those of the mid-1990s, as both personnel expenses and federal employment (are) reduced," the report states. "The PBO expects a significant slowdown in personnel expenses, given assumptions about baseline employment." Compensation is expected to continue to grow, although not at the rate of the past 13 years. The report projects that by 2014-15, the average annual compensation for a federal employee will rise to $129,800, a growth rate of 4.4 per cent per annum. That is a few thousand dollars less than would have been the case without the restraint program. The PBO complains, however, as it has in the past, that it has not been given sufficient information about how the restraint program is being implemented, or its impact. "As such, parliamentarians do not have the resources with which to determine areas of priorit

Questions: With the government cutting off public servant, how will this effect the distribution on public services provided to Canadians Is there other alternatives the government can consider rather than laying off public servants to decrease the government's expenditure?

Unemployment itself has negative effects on people besides the obvious ones of having less money. People are more likely to become depressed, less likely to retain learned skills and it may even affect their children's earnings.

1) What do you think are possible solutions for the rising inequality? 2) Since the rich are taking a higher percent of overall income and Canada is in debt, do you agree with lowering their taxes?

Consumer debt is becoming a larger threat to the Canadian economy as a whole. Meanwhile, businesses stopped expanding due to weak global growth.