Article: http://www.ottawacitizen.com/business/recession/4228661/story.html
Summary:
Statistics Canada has confirmed that Canada's employment marked has regained its pre-recession peak of 17.2 million in the fall of 2008. All it took was an unexpectedly large gain of 69,200 jobs in January, compared to December 2010. Compared to our last recession (in the early 1990s) it's taken only half as long to regain the lost jobs. However, there is still plenty of economic damage to be repaired. During the recession, the country's population kept growing, which means currently, there are nearly 375,000 additional job seekers in the workforce. As a result, the national unemployment rate as of January is 7.8 percent compared to 6.1 percent at the start of the recession. As of now, many parts of the country are still hurting. For instance, 17 of the largest 33 urban areas had yet to regain previous employment levels. Peterborough, Guelph, and Kingston weren't even close. Other cities such as Kelowna, British Columbia, and Quebec City has performed well beyond pre-recession levels. It all depends on the city.
Connection:
This article ties in with one of the topics in chapter 5--Employment and unemployment. According to our textbook, the definition of an unemployed person is "any person who, during the reference week, was without work, had actively looked for work in the last four weeks, and was available for work. An unemployed person has an immediate interest in finding work, and would be available if suitable work were found." An employed person is "any person who did any work for pay or profit during the reference week. Others that are considered employed are "unpaid family workers in a family farm or business." This category also includes individuals who were on vacation, on strike or on sick leave during the reference week. As well, there are many types of unemployment and I think the one that is connected to the article is Structual unemployment. Structual unemployment is the result from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Even though the number of vacancies may be equal to, or greater than the number of unemployed, the unemployed workers many lack the skills needed for the jobs; or they may not live in the part of the country or world where jobs are available. This is true to the article because areas such as Guelph and Kingston, they are still "hurting" from the recession and not many jobs are available. As a result, many individuals living there are unemployed because of where they live. Not many opportunities are present at this time.
Reflection:
Unemployment has always been a concern for us individuals. This is because when a worker's income has been reduced due to unemployment, it will be more difficult for them to support him/herself or their family. It is also a concern for Canada, because if people are not working, then it means that Canada is not using its resources efficiently enough. From this article, it is interesting to see that although we have officially stepped out of recession, and many jobs have been added to the economy, our unemployment rate has still increased to 7.8 percent compared to 6.1 percent at the start of the recession. This is because our population has grown during the recession and many people have decided to step into the workforce. I suppose even if we have successfully stepped out of recession, it is true that it will still take a long time for us to fully recover.
Wednesday, March 2, 2011
Friday, January 21, 2011
Corporate Taxes: Flaherty gets it right
Article: http://www.windsorstar.com/news/Corporate+taxes/4095206/story.html
Summary:
Since four years ago, federal Finance Minister, Jim Flaherty had suggested to lower the corporate income tax rates in Canada. His intention and idea was to increase investment, create jobs and ensure that Canadian companies could remain competitive. And right now, it seems as if this strategy is working very effectively. Originally, the tax rate was at 21 percent. It then decreased to 18 percent, and on January 1, 2010 it went down to 16.5 percent. By next year, it will go down to as low as 15 percent. "If we want more jobs, higher wages and an improved standard of living, Canada needs to be the most attractive place for job creators to do business and invest," Flaherty says. Lowering the corporate tax is not only improving our standard of living, but it is also benefiting our reputation. Just last week, the Wall Street Journal published an editorial which pointed out that the U.S. should be looking closely at the competitive advantage that Canada has slowly shaped with corporate tax cuts. Currently, the U.S. federal rate is at 35 per cent, which is more than double Canada's. All in all, Canada's image has also received a boost in Washington Times where business author, James A. Bacon has stated that "Canada is quietly surpassing the U.S. as the land of opportunity."
Connection:
This article connects to Chapter 4 because this chapter mainly talks about the involvement of taxation in the government of Canada. This relates to one of the topics discussed in the textbook; Sources of Government Revenue. One of the main taxes that generate income for the government is the corporation income tax, which is a tax that is imposed on the net profits of companies. These tax rates vary depending on the type of business and the ownership. In this article, the main focus is on the corporation income taxes. They think that lowering these tax rates will in return allow us to receive benefits such as higher wages, more job opportunities, and higher standard of living. This seems quite true in some degree because if we were to lower the income taxes, we would have to pay less tax and it is less of a burden for us; therefore it allows us to enjoy a higher standard of living.
Reflection:
In my opinion, this seems to be good news because it seems to be a benefit to all companies and people who have lost their jobs from the recession. For myself, I do hope for and encourage the government to decrease this corporate income tax because from what I have read in the article, there seems to be more pros than cons in imposing this act. However, I feel that this seems to be almost too good to be true. It appears to me that the benefits that Flaherty has mentioned in the article can be achieved a little too easily. Lowering the tax rate might have an effect on our economy and creating a better image for us, but will it really create more jobs and give us higher wages in return is still unknown. I do not believe that solely lowering taxes will generate that many benefits for us. I feel that to achieve everything stated in the article, more things have to be done.
Summary:
Since four years ago, federal Finance Minister, Jim Flaherty had suggested to lower the corporate income tax rates in Canada. His intention and idea was to increase investment, create jobs and ensure that Canadian companies could remain competitive. And right now, it seems as if this strategy is working very effectively. Originally, the tax rate was at 21 percent. It then decreased to 18 percent, and on January 1, 2010 it went down to 16.5 percent. By next year, it will go down to as low as 15 percent. "If we want more jobs, higher wages and an improved standard of living, Canada needs to be the most attractive place for job creators to do business and invest," Flaherty says. Lowering the corporate tax is not only improving our standard of living, but it is also benefiting our reputation. Just last week, the Wall Street Journal published an editorial which pointed out that the U.S. should be looking closely at the competitive advantage that Canada has slowly shaped with corporate tax cuts. Currently, the U.S. federal rate is at 35 per cent, which is more than double Canada's. All in all, Canada's image has also received a boost in Washington Times where business author, James A. Bacon has stated that "Canada is quietly surpassing the U.S. as the land of opportunity."
Connection:
This article connects to Chapter 4 because this chapter mainly talks about the involvement of taxation in the government of Canada. This relates to one of the topics discussed in the textbook; Sources of Government Revenue. One of the main taxes that generate income for the government is the corporation income tax, which is a tax that is imposed on the net profits of companies. These tax rates vary depending on the type of business and the ownership. In this article, the main focus is on the corporation income taxes. They think that lowering these tax rates will in return allow us to receive benefits such as higher wages, more job opportunities, and higher standard of living. This seems quite true in some degree because if we were to lower the income taxes, we would have to pay less tax and it is less of a burden for us; therefore it allows us to enjoy a higher standard of living.
Reflection:
In my opinion, this seems to be good news because it seems to be a benefit to all companies and people who have lost their jobs from the recession. For myself, I do hope for and encourage the government to decrease this corporate income tax because from what I have read in the article, there seems to be more pros than cons in imposing this act. However, I feel that this seems to be almost too good to be true. It appears to me that the benefits that Flaherty has mentioned in the article can be achieved a little too easily. Lowering the tax rate might have an effect on our economy and creating a better image for us, but will it really create more jobs and give us higher wages in return is still unknown. I do not believe that solely lowering taxes will generate that many benefits for us. I feel that to achieve everything stated in the article, more things have to be done.
Friday, November 5, 2010
Survey: Apple’s iPad Still Has Huge Demand Advantage
Summary:
Since Apple has launched the iPad in April 2010, there has been a serious decline in the demand for netbooks. Respondents of the new ChangeWave Survey with the intention of buying a netbook have dropped drastically over the past year. In fact, netbook demand has been dropping steadily since its peak in June 2009 from 20 percent to 14 percent. Although the price of the iPad can be compared with higher-priced netbooks, ChangeWave has found that not only is the demand for this portable device is high, but consumers are also very satisfied with this product. 72 percent replied that they were “Very Satisfied” with Apple’s tablet, while another 23 percent said they were “Somewhat Satisfied” and 0 percent for “Very Unsatisfied.” At this moment, 80 percent of those who are likely to buy a tablet are planning to get an iPad. RIM’s (Research In Motion) Playbook is the next in line for highest demand, but survey shows that only 8 percent of the respondents are choosing the Blackberry solution. If that isn’t enough to convince you, this tablet device is most likely to be on the customers’ wish list as the holiday season approaches.
Connection:
Since Apple has launched the iPad in April 2010, there has been a serious decline in the demand for netbooks. Respondents of the new ChangeWave Survey with the intention of buying a netbook have dropped drastically over the past year. In fact, netbook demand has been dropping steadily since its peak in June 2009 from 20 percent to 14 percent. Although the price of the iPad can be compared with higher-priced netbooks, ChangeWave has found that not only is the demand for this portable device is high, but consumers are also very satisfied with this product. 72 percent replied that they were “Very Satisfied” with Apple’s tablet, while another 23 percent said they were “Somewhat Satisfied” and 0 percent for “Very Unsatisfied.” At this moment, 80 percent of those who are likely to buy a tablet are planning to get an iPad. RIM’s (Research In Motion) Playbook is the next in line for highest demand, but survey shows that only 8 percent of the respondents are choosing the Blackberry solution. If that isn’t enough to convince you, this tablet device is most likely to be on the customers’ wish list as the holiday season approaches.
Connection:
The factors causing the decrease in demand for netbooks and the increase in demand for iPads in this case would be incomes and tastes and preferences. As the economy is slowly recovering from recession, the income of consumers is generally increasing. That is to say, they would be able to generate more disposable income. The more disposable income they have, the more money they will spend on luxurious items such as the iPad. Even though the price of an iPad is more expensive than a typical netbook, consumers are still willing to pay that much more for this product. In terms of tastes and preferences, Apple has done an extraordinary job on advertising their tablet. The iPad is a light-weight, portable device that has a big, beautiful Multi-Touch screen. This makes web browsing, typing emails, watching a movie, and even gaming a remarkable experience for us consumers. Last but not least, Apple has specifically designed more than a thousand apps limited to the iPad. Those factors alone are enough to turn the heads of a netbook consumer to purchase an iPad as a substitution of a netbook, resulting in an increased quantity exchanged for iPads.
Reflection:
As I have previously mentioned, Apple has done an excellent job in convincing that purchasing an iPad is the better choice. Many people have been affected by this—including myself—which is exactly why the demand of iPads is so high. I personally think Apple is very clever as they know what consumers are looking for. I also think that the demand for iPads is not likely to decrease any time soon because since this tablet has fulfilled many of the consumers’ needs and they are satisfied with this product, it is not likely that they will find an alternative in the future. Thus, they will continue being a loyal customer to Apple. Nowadays, when I walk into our local coffee shops, there is not a time where I don’t see someone holding an iPad. However, I have yet to see someone holding a RIM Playbook in their hands. That means even RIM, Apple’s biggest competitor in the market, is not up to par with Apple. The technology and products from Apple will only improve, and the demand will only go higher and higher.
Reflection:
As I have previously mentioned, Apple has done an excellent job in convincing that purchasing an iPad is the better choice. Many people have been affected by this—including myself—which is exactly why the demand of iPads is so high. I personally think Apple is very clever as they know what consumers are looking for. I also think that the demand for iPads is not likely to decrease any time soon because since this tablet has fulfilled many of the consumers’ needs and they are satisfied with this product, it is not likely that they will find an alternative in the future. Thus, they will continue being a loyal customer to Apple. Nowadays, when I walk into our local coffee shops, there is not a time where I don’t see someone holding an iPad. However, I have yet to see someone holding a RIM Playbook in their hands. That means even RIM, Apple’s biggest competitor in the market, is not up to par with Apple. The technology and products from Apple will only improve, and the demand will only go higher and higher.
Monday, September 20, 2010
E. coli scare ripples through White Rock: 20,000 told to boil water after bacteria found in test sample
Article: http://www.vancouversun.com/life/environment/coli+scare+ripples+through+White+Rock/3430560/story.html
Summary:
EPCOR, a utility company based in Edmonton, Alberta, has detected traces of E. coli in White Rock's water supply, forcing nearly 20,000 residents to boil their water. Residents were advised by health officials that all tap water should be boiled for at least one minute before being used drinking, washing vegetables, or even brushing teeth. Businesses around the area were struggling and scrambling to find clean sources of water supply for their customers. Samples of water from twenty-four sites were taken back to be tested, and EPCOR had only found E. coli in one site. They had also searched White Rock's six well heads, construction sites, reservoirs, hydraulics, and sampling facilities, but the source of bacteria still remains unknown. David Plug, the spokesman of Fraser Health Authority, has stated that it may have been a sampling or lab error, or there was a contamination somewhere along the process. It could also be possible that water had leeched through the ground with contaminants. The boiling water advisory will not cease and will continue to stay in place until three consecutive water samples are free from bacteria.
Connection:
This article links to both scarcity and opportunity costs. Water, as many of you may have known, is a scarce resource. Due to the contamination of E. coli, the scarcity of water has ultimately increased and has affected 20,000 residents of White Rock. But that is only to say the least. Not only did this affect the residents of White Rock, but this had also affected businesses in the area, such as restaurants like The Boathouse or Uli's Restaurant. Stephen Duzyer, the head chef of The Boathouse Restaurant has claimed that they have already spent $1,000 on ice, which is where opportunity cost comes into the picture. The Owner of Uli's Restaurant has claimed that he had to wake up one or two hours earlier each day just to buy juice and other beverages to sell to customers. Residents of White rock were also forced to buy bottled water from local supermarkets such as Walmart. Due to this factor, the demand for bottles of distilled water has then largely increased. As a result, businesses were charging consumers at the cost of up to $7 for one-litre of bottled water. Other costs that may need to be factored in could be the electricity and heat that residents may have to use to boil their water to ensure that the water they drink could be safely consumed, as well as the amount of fuel that they have to use to travel to local supermarkets for beverages and clean water.
Reflection:
Nowadays, it seems as if clean water is becoming scarcer and we have to be more attentive to what we consume because there could be traces of contaminants anywhere. Water pollution and wastes being dumped into rivers and canals have made the water become unsuitable for drinking, therefore increasing the scarcity. While we think we still have a large supply of fresh water, we don't, and after I read this article I feel that we have been taking the things we have for granted. We may not realize it now, but in the near future this may become a serious issue. Millions of people have died each year from preventable diseases, after drinking water from polluted and contaminated sources. I feel that we are very lucky and are privileged to be given this luxury to have fresh water supply, but not very many of us appreciate this. I feel that we could help by cutting down the usage of water as much as possible, such as turning the taps off when we don't need it, take shorter showers, and we could even consider buying toilets that have water-saving features. That way, we can conserve the amount of water we use for our own benefits, but more importantly, for people who are in need of fresh water.
Summary:
EPCOR, a utility company based in Edmonton, Alberta, has detected traces of E. coli in White Rock's water supply, forcing nearly 20,000 residents to boil their water. Residents were advised by health officials that all tap water should be boiled for at least one minute before being used drinking, washing vegetables, or even brushing teeth. Businesses around the area were struggling and scrambling to find clean sources of water supply for their customers. Samples of water from twenty-four sites were taken back to be tested, and EPCOR had only found E. coli in one site. They had also searched White Rock's six well heads, construction sites, reservoirs, hydraulics, and sampling facilities, but the source of bacteria still remains unknown. David Plug, the spokesman of Fraser Health Authority, has stated that it may have been a sampling or lab error, or there was a contamination somewhere along the process. It could also be possible that water had leeched through the ground with contaminants. The boiling water advisory will not cease and will continue to stay in place until three consecutive water samples are free from bacteria.
Connection:
This article links to both scarcity and opportunity costs. Water, as many of you may have known, is a scarce resource. Due to the contamination of E. coli, the scarcity of water has ultimately increased and has affected 20,000 residents of White Rock. But that is only to say the least. Not only did this affect the residents of White Rock, but this had also affected businesses in the area, such as restaurants like The Boathouse or Uli's Restaurant. Stephen Duzyer, the head chef of The Boathouse Restaurant has claimed that they have already spent $1,000 on ice, which is where opportunity cost comes into the picture. The Owner of Uli's Restaurant has claimed that he had to wake up one or two hours earlier each day just to buy juice and other beverages to sell to customers. Residents of White rock were also forced to buy bottled water from local supermarkets such as Walmart. Due to this factor, the demand for bottles of distilled water has then largely increased. As a result, businesses were charging consumers at the cost of up to $7 for one-litre of bottled water. Other costs that may need to be factored in could be the electricity and heat that residents may have to use to boil their water to ensure that the water they drink could be safely consumed, as well as the amount of fuel that they have to use to travel to local supermarkets for beverages and clean water.
Reflection:
Nowadays, it seems as if clean water is becoming scarcer and we have to be more attentive to what we consume because there could be traces of contaminants anywhere. Water pollution and wastes being dumped into rivers and canals have made the water become unsuitable for drinking, therefore increasing the scarcity. While we think we still have a large supply of fresh water, we don't, and after I read this article I feel that we have been taking the things we have for granted. We may not realize it now, but in the near future this may become a serious issue. Millions of people have died each year from preventable diseases, after drinking water from polluted and contaminated sources. I feel that we are very lucky and are privileged to be given this luxury to have fresh water supply, but not very many of us appreciate this. I feel that we could help by cutting down the usage of water as much as possible, such as turning the taps off when we don't need it, take shorter showers, and we could even consider buying toilets that have water-saving features. That way, we can conserve the amount of water we use for our own benefits, but more importantly, for people who are in need of fresh water.
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