LINK : http://www.economist.com/finance/displayStory.cfm?story_id=12689737
Summary
The article I’ve chosen is about is about the wages of employees rising. Since the economic recession is happening, workers in Saskatchewan got raises in their average weekly earning. There was data showing that about 439,000 people that worked in non-farm like jobs went up 1.9 percent in their payroll. While the hourly pay rates are going up, it seems like the actual hours of work and overtime are going down. The reason that they made the wages of people’s salaries higher was so that they could promote spending to help the economy. Statistics Canada stated that the biggest job losses were in the fields of manufacturing, construction, truck transportation, and non-internet publishing jobs. However there has been job growth in the fields of health and education employment.
Connection
The article is connected to this chapter because it talks about wage control. Since the wages of jobs have gone up, it will promote more spending. With more of a demand for spending, businesses will raise the prices of their goods. Luckily with the prices of goods going up, the government can put a price ceiling to help protect consumers. The price ceiling will help support the consumers and keep up the demand for goods. Wage control is very commonly used by the government to help restrain the occurrence of inflation. With inflations kept down consumer will be more confident with their spending.
Reflection
I think that by increasing wages of people, it will sooner or later hurt them. The increase of wages can help people now, but after a while the problems will catch up. Since the increases are to promote spending, companies will increase their prices so that consumers will have to pay more then they use to. Price ceilings would help but the prices of products will still go up. with the profits of businesses going up, they will not have to have so many employees so there would be less job opportunities to out there. So in the end there would just be job losses and an increase of goods from businesses.
Blog comment at https://www.blogger.com/comment.g?blogID=608050495002425587&postID=2888762571836162320&page=1
Friday, April 17, 2009
Monday, March 30, 2009
Chapter 7
Link : http://www.vancouversun.com/business/fp/story.html?id=1393636
Summary
The article talks about how the credit card companies have a 2% average fee for retail owners for the usage of the ability to offer credit cards as a way of payment. Before last June, the rate of interchange fees where ranged from 1.6% to 19% and premium cards at 2.3% to 2.5%. Theses percentages can affect the costs of small businesses that are trying to allow credit cards. If small businesses owner don't use the credit card machines, then they could lose some business because in modern days, many people use credit cards or debit cards because it’s an easier way or carrying money.
Relation
This relates to ch.7 because it is essential to have currency in order to continue on day-to-day business activities. Everyday things such as food, clothing, entertainment and other things, require money from people. The business sector desires money in order to get the kinds of services it wants. This need for money is referred to as a transactions demand. A transaction demand is the money required to accommodate a firm's expected cash transactions. The fact that there is an increase in the unemployment in our economy may be because the demand for money is not as high as it use to be years ago. Supposedly it is easier to earn quick cash on small odd jobs and many people don't want to work in the foods and beverages industry because it is seen as a "bad" job for those who don’t have good education. The supply of money in our economy is an important indicator of economic conditions. It shows the amount of purchasing power available.
Personal Reflection
I personally think that the usage of credit cards and debits cards are important for the circulation of money. Credit cards can be easily stolen but they allow people to borrow money which allows them to spend more money. The lent money will also be charged by the credit company so that they can receive money as well. The problem with credit cards is that they seem way too unsafe to carry because anyone can just use the credit card unlike a debit card. A debit care in my opinion is safer and better because you don’t have to pay for the loans part of a bill because you do not loan any money, a person would just spend their own money. Also, if a person were to have their debit card stolen, then the person would also have to know the debit card PIN number to allow access to the card owner’s cash box.
Summary
The article talks about how the credit card companies have a 2% average fee for retail owners for the usage of the ability to offer credit cards as a way of payment. Before last June, the rate of interchange fees where ranged from 1.6% to 19% and premium cards at 2.3% to 2.5%. Theses percentages can affect the costs of small businesses that are trying to allow credit cards. If small businesses owner don't use the credit card machines, then they could lose some business because in modern days, many people use credit cards or debit cards because it’s an easier way or carrying money.
Relation
This relates to ch.7 because it is essential to have currency in order to continue on day-to-day business activities. Everyday things such as food, clothing, entertainment and other things, require money from people. The business sector desires money in order to get the kinds of services it wants. This need for money is referred to as a transactions demand. A transaction demand is the money required to accommodate a firm's expected cash transactions. The fact that there is an increase in the unemployment in our economy may be because the demand for money is not as high as it use to be years ago. Supposedly it is easier to earn quick cash on small odd jobs and many people don't want to work in the foods and beverages industry because it is seen as a "bad" job for those who don’t have good education. The supply of money in our economy is an important indicator of economic conditions. It shows the amount of purchasing power available.
Personal Reflection
I personally think that the usage of credit cards and debits cards are important for the circulation of money. Credit cards can be easily stolen but they allow people to borrow money which allows them to spend more money. The lent money will also be charged by the credit company so that they can receive money as well. The problem with credit cards is that they seem way too unsafe to carry because anyone can just use the credit card unlike a debit card. A debit care in my opinion is safer and better because you don’t have to pay for the loans part of a bill because you do not loan any money, a person would just spend their own money. Also, if a person were to have their debit card stolen, then the person would also have to know the debit card PIN number to allow access to the card owner’s cash box.
Thursday, March 5, 2009
Chapter 6
Link: http://www.economist.com/finance/displaystory.cfm?story_id=13240636&CFID=45434287&CFTOKEN=42455415
Summary
In Japan they are spending more then the average American household and so Japan's trade balance went into a shortage last year. From the six months to January, Japan had a annualized trade shortage of ¥4 trillion which is equal to $39 billion. This is a big shift compared to the surplus of ¥11 trillion the year earlier. Japans foreign investment is also shrinking thanks to the lower dividends and interest rates. Most economists think that Japan will have a reduced GDP of 1%, down from the 4.8% in 2007. The saving rate of a household in Japan went from 18% of income in 1980 to about 1% last year. In contrast, the American saving rate went up to 5% in January because of the tight credit and falling wealth. As the population continues to age, the household savings will go even lower and even perhaps into negative because the retired live off their large stash of financial assets.
Connection
The connection between this article and the textbook is the situation of saving and spending. The more a household saves, the less income is going into companies. When companies receive less income, they either cut back on the wages of employees or increase the prices of their product. Once companies have increased their product, then people will have to pay more for the item This creates a paradox of thrift. If a person chooses to save money in a place where they don't gain interest, their spending power is decreasing. A person who lends money will lose money if the prices of things are going up. The person who borrowed the money has the advantage because they only have to pay back the money that is worth less now. Japan is saving less money and spending more so they have a shrinking surplus.
Reflection
This reflects us because Japan is a very big economical supplier for everyday things that people use. Since Japan might have some economics issues later on, things that that are usually supplied by and made in Japan will be more costly. I think that as long as the Japanese people realize that they need to save more money, they can start to help rebuild their falling surplus problem. The exports that they have are important part of their income. Japan has usually had a good economical status where their money issues are okay. But since a few months til now they seem to be getting into some trouble. If Japan ends up having too big of a trouble to handle, things can get to be very costly.
Summary
In Japan they are spending more then the average American household and so Japan's trade balance went into a shortage last year. From the six months to January, Japan had a annualized trade shortage of ¥4 trillion which is equal to $39 billion. This is a big shift compared to the surplus of ¥11 trillion the year earlier. Japans foreign investment is also shrinking thanks to the lower dividends and interest rates. Most economists think that Japan will have a reduced GDP of 1%, down from the 4.8% in 2007. The saving rate of a household in Japan went from 18% of income in 1980 to about 1% last year. In contrast, the American saving rate went up to 5% in January because of the tight credit and falling wealth. As the population continues to age, the household savings will go even lower and even perhaps into negative because the retired live off their large stash of financial assets.
Connection
The connection between this article and the textbook is the situation of saving and spending. The more a household saves, the less income is going into companies. When companies receive less income, they either cut back on the wages of employees or increase the prices of their product. Once companies have increased their product, then people will have to pay more for the item This creates a paradox of thrift. If a person chooses to save money in a place where they don't gain interest, their spending power is decreasing. A person who lends money will lose money if the prices of things are going up. The person who borrowed the money has the advantage because they only have to pay back the money that is worth less now. Japan is saving less money and spending more so they have a shrinking surplus.
Reflection
This reflects us because Japan is a very big economical supplier for everyday things that people use. Since Japan might have some economics issues later on, things that that are usually supplied by and made in Japan will be more costly. I think that as long as the Japanese people realize that they need to save more money, they can start to help rebuild their falling surplus problem. The exports that they have are important part of their income. Japan has usually had a good economical status where their money issues are okay. But since a few months til now they seem to be getting into some trouble. If Japan ends up having too big of a trouble to handle, things can get to be very costly.
Sunday, February 22, 2009
Thursday, January 22, 2009
Chapter 4 - Government in Canada
Article: http://www.canada.com/vancouversun/news/business/story.html?id=54a58cb2-f2a4-4698-9410-daf70649af50&k=25600
Summary
This article I have chosen talks about a group of 80 B.C. business which call on Finance Minister Carole Taylor to adopt a revenue-neutral tax to help confront the climate change. There was a letter that was sent to Taylor, regarding to the changes of taxes from the income and corporate earnings to the carbon emissions. They say that it will be an incentive to help out reducing carbon emissions while ensuring that B.C. firms remain competitive and wage earners are not badly impacted. There was a group of economists that sent a letter similar to the businessman to finance minister concerning this matter. With the revenue used to help reduce gas emissions, Carole told The Vancouver Sun that she is thinking of a new tax on gasoline. Esther Speck, Mountain Equipment Co-op's director says, "We know we need to do this, and we believe this is the most efficient and cost-effective way of getting to it." However, it has not been specified if B.C. will initiate this carbon tax in the provincial budget in February 2008. Carbon taxes are seen to be the best ways to support energy conservation. The tax could go against greenhouse gas emissions at any stage in the manufacture or distribution of a consumer good.
Connection
This article is related to Chapter 4 because it is mainly about taxes. Many Canadians think that they are paying too much money towards taxes to the government. Taxes such as PST, GST, Income tax, Direct tax, Indirect tax, and now the government would issue a Carbon tax. The government hopes that this Carbon tax can help the people use less gas so that the environment can be more clean. This carbon tax is also to help gain a revenue to the government because people who have to drive, will need to pay the tax whether they want it or not. People are also unaware of what the government would choose to do with money new source of revenue. Would the government spend it to help equalize the offset caused by the carbon tax by fixing up other parts of the system which need money? Parts such as helping the homeless because the homeless rates have risen from last year. This new tax also puts many people onto the edge. People who are tight with money who need to drive, have to be able to deal with the new tax, even though they also have enough trouble trying to keep up with their income in society.
Reflection
I personally think that the carbon tax is a good thing. So far I've noticed that the air in Vancouver isn't as good as it use to be. I hope that one day, it wont turn out like many other populated places where the air can even seem yellow from all the mess in the air. I have so far practiced with my L license and and soon going to be getting my N. These carbon taxes will effect me, but i still think that keeping the environment nice and clean is an important issue. An important reason as to why the carbon tax is first implicated, is because of the issue Global Warming. To stop global warming, the government wants people to drive less just like who there is a tax on alcohol to stop drinkers. Even if this is a reason, i am not too sure that this is actually helping to world, or just creating more problems. With more money needing to be paid, it makes the economy worse, but since the government can do good things with the money like help other parts of the system which needs help, it could help the economy.
Summary
This article I have chosen talks about a group of 80 B.C. business which call on Finance Minister Carole Taylor to adopt a revenue-neutral tax to help confront the climate change. There was a letter that was sent to Taylor, regarding to the changes of taxes from the income and corporate earnings to the carbon emissions. They say that it will be an incentive to help out reducing carbon emissions while ensuring that B.C. firms remain competitive and wage earners are not badly impacted. There was a group of economists that sent a letter similar to the businessman to finance minister concerning this matter. With the revenue used to help reduce gas emissions, Carole told The Vancouver Sun that she is thinking of a new tax on gasoline. Esther Speck, Mountain Equipment Co-op's director says, "We know we need to do this, and we believe this is the most efficient and cost-effective way of getting to it." However, it has not been specified if B.C. will initiate this carbon tax in the provincial budget in February 2008. Carbon taxes are seen to be the best ways to support energy conservation. The tax could go against greenhouse gas emissions at any stage in the manufacture or distribution of a consumer good.
Connection
This article is related to Chapter 4 because it is mainly about taxes. Many Canadians think that they are paying too much money towards taxes to the government. Taxes such as PST, GST, Income tax, Direct tax, Indirect tax, and now the government would issue a Carbon tax. The government hopes that this Carbon tax can help the people use less gas so that the environment can be more clean. This carbon tax is also to help gain a revenue to the government because people who have to drive, will need to pay the tax whether they want it or not. People are also unaware of what the government would choose to do with money new source of revenue. Would the government spend it to help equalize the offset caused by the carbon tax by fixing up other parts of the system which need money? Parts such as helping the homeless because the homeless rates have risen from last year. This new tax also puts many people onto the edge. People who are tight with money who need to drive, have to be able to deal with the new tax, even though they also have enough trouble trying to keep up with their income in society.
Reflection
I personally think that the carbon tax is a good thing. So far I've noticed that the air in Vancouver isn't as good as it use to be. I hope that one day, it wont turn out like many other populated places where the air can even seem yellow from all the mess in the air. I have so far practiced with my L license and and soon going to be getting my N. These carbon taxes will effect me, but i still think that keeping the environment nice and clean is an important issue. An important reason as to why the carbon tax is first implicated, is because of the issue Global Warming. To stop global warming, the government wants people to drive less just like who there is a tax on alcohol to stop drinkers. Even if this is a reason, i am not too sure that this is actually helping to world, or just creating more problems. With more money needing to be paid, it makes the economy worse, but since the government can do good things with the money like help other parts of the system which needs help, it could help the economy.
Sunday, November 23, 2008
Chapter 3
Article Link: http://www.economist.com/agenda/displaystory.cfm?story_id=11660270
Summary
The article I've chosen talks about the price change of electricity in South Africa. The government changes the price so that people will gain more benefits from the electricity. Since the price went up to 27.5%, the electricity could also cause more inflation. Food prices are currently rising faster than prices as a whole. Food is not the only factor though, because energy prices are also another cause of rising inflation to South Africa. With rising prices continuing to push the inflation, South Africa cannot continue to supply the cheapest power in the world and the new price change could make the demand go lower but it would become more reliable.
Connection
This article connects to the chapter because it talks about how the government changed the price ceiling for electricity. This price could become more of a problem for businesses or on households to make more savings. With this new price change the government set, it contributes to the inflation from other things as well such as the price of food. If the price ceiling was lowered, the public could be more happy because then the electricity could be more affordable, but the quality of the service the electricity companies give would be lower because they gain less profit.
Reflection
Electricity is one of those things that everyone needs. It is a good that is inelastic because the public can't find another place to find this electricity unless they make it themselves. To help prevent more inflation the government could issue some private companies that give electricity to those who maybe pay more. The people who pay more for their electricity could get better electricity that does not have as many blackouts that happen. By allowing privatization of electricity then they could keep the price of electricity for the public lower price ceiling so that inflation won't be caused. Many of the people don't mind the price ceiling going up because they feel that the benefit of having better electricity service is worth the extra cost.
Summary
The article I've chosen talks about the price change of electricity in South Africa. The government changes the price so that people will gain more benefits from the electricity. Since the price went up to 27.5%, the electricity could also cause more inflation. Food prices are currently rising faster than prices as a whole. Food is not the only factor though, because energy prices are also another cause of rising inflation to South Africa. With rising prices continuing to push the inflation, South Africa cannot continue to supply the cheapest power in the world and the new price change could make the demand go lower but it would become more reliable.
Connection
This article connects to the chapter because it talks about how the government changed the price ceiling for electricity. This price could become more of a problem for businesses or on households to make more savings. With this new price change the government set, it contributes to the inflation from other things as well such as the price of food. If the price ceiling was lowered, the public could be more happy because then the electricity could be more affordable, but the quality of the service the electricity companies give would be lower because they gain less profit.
Reflection
Electricity is one of those things that everyone needs. It is a good that is inelastic because the public can't find another place to find this electricity unless they make it themselves. To help prevent more inflation the government could issue some private companies that give electricity to those who maybe pay more. The people who pay more for their electricity could get better electricity that does not have as many blackouts that happen. By allowing privatization of electricity then they could keep the price of electricity for the public lower price ceiling so that inflation won't be caused. Many of the people don't mind the price ceiling going up because they feel that the benefit of having better electricity service is worth the extra cost.
Monday, October 27, 2008
Chapter Two
Chapter 2: The effects of Supply and Demand
http://www.economist.com/world/international/displaystory.cfm?story_id=12380981
Summary
The article I have chosen talks about the increase demand of transplant surgery. As the demand increases for transplants, more and more money is being shifted to help support the many people who receive the surgery. Statistics and researches have shown that last year, there were more then 7,000 American deaths caused by the long wait for transplants. Many researchers found that people who need kidneys, the most demanded body part, only got one if there were the one in ten. The article also talks about how the kidneys are so demanded that a doctor in India even drugged people to get their kidneys even if they refused the $2000 offer. According to the humans-rights groups, prisoners in China who were to be executed were to give up their kidneys with "consent".
Connection
The article's connection to chapter 2 is that it is about supply and demand. People around the world really need kidneys when they have a kidney failure. The kidneys also have to have a certain match before being able to transfer. This makes the demand even higher because the chances of getting a corresponding kidney are lowered. Since there is a lower supply of kidneys, the price elasticity of demand for the organs is very close to being inelastic. Kidneys are also inelastic products because the kidneys can only be replaced with kidneys. Many people who need kidneys are willing to play a high price in order to get them. They are in such a need that people are willing to steal them to be sold.
Reflection
I feel that since the demand of kidneys is high, people should take kidneys from people who might die but still have a healthy kidney. They could also take the kidneys from convicts in jail because they won't need it anyways. This seems very wrong because these inmates are people too, but maybe the government can make it incorporated with some of the punishments for some crimes that are committed. There are many people in jail and this will help to lower some of the demand for kidneys. The stories of people having their kidneys taken while unconscious are very frightening. If I were in need of a organ I would hope to receive one as soon as possible because I would feel helpless and scared without one. I feel that many people are very selfish for example when people who are going to die, they want their organs to be left inside them. If someone close to you were in the situation of needing an organ, your perspective of giving up your organ would change dramatically. Imagine visiting a country and ending up being kidnaps and awakening to find out that your kidney has been kidnapped!
http://www.economist.com/world/international/displaystory.cfm?story_id=12380981
Summary
The article I have chosen talks about the increase demand of transplant surgery. As the demand increases for transplants, more and more money is being shifted to help support the many people who receive the surgery. Statistics and researches have shown that last year, there were more then 7,000 American deaths caused by the long wait for transplants. Many researchers found that people who need kidneys, the most demanded body part, only got one if there were the one in ten. The article also talks about how the kidneys are so demanded that a doctor in India even drugged people to get their kidneys even if they refused the $2000 offer. According to the humans-rights groups, prisoners in China who were to be executed were to give up their kidneys with "consent".
Connection
The article's connection to chapter 2 is that it is about supply and demand. People around the world really need kidneys when they have a kidney failure. The kidneys also have to have a certain match before being able to transfer. This makes the demand even higher because the chances of getting a corresponding kidney are lowered. Since there is a lower supply of kidneys, the price elasticity of demand for the organs is very close to being inelastic. Kidneys are also inelastic products because the kidneys can only be replaced with kidneys. Many people who need kidneys are willing to play a high price in order to get them. They are in such a need that people are willing to steal them to be sold.
Reflection
I feel that since the demand of kidneys is high, people should take kidneys from people who might die but still have a healthy kidney. They could also take the kidneys from convicts in jail because they won't need it anyways. This seems very wrong because these inmates are people too, but maybe the government can make it incorporated with some of the punishments for some crimes that are committed. There are many people in jail and this will help to lower some of the demand for kidneys. The stories of people having their kidneys taken while unconscious are very frightening. If I were in need of a organ I would hope to receive one as soon as possible because I would feel helpless and scared without one. I feel that many people are very selfish for example when people who are going to die, they want their organs to be left inside them. If someone close to you were in the situation of needing an organ, your perspective of giving up your organ would change dramatically. Imagine visiting a country and ending up being kidnaps and awakening to find out that your kidney has been kidnapped!
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