http://business.timesonline.co.uk/tol/business/economics/article6145950.ece
In the UK, public borrowing has reached to 90 billion pounds and unemployment has reached the highest level since 1997. Net borrowing for March was 19.1 billion pounds which is the highest level of borrowing since records began in 1993. Data also shows that umeployment has gone from 177,000 to 2.1 million in the three months to Feburary. Overall public debt reached 743.6 billion pounds by the end of March which is equal to 50.9 per cent of GDP, up from 43.1 per cent at the end of March. The British Government has also been helping their own banks by bailing them out. The net dent of bailing out the banks is 41.7 percent of the GDP which has broken the Government's now defunct fiscal rule, which stated that the debt would never exceed over 40 percent of the GDP.
A public debt is the total amount of money owed by all levels of government is a country or state. The British government has increased public borrowing which does not decrease the overall spending to the same extent of raising taxes. When the government has to borrow money, they have to compete for funds with anyone else who wants to borrow. This competition will inevitably increase the interest rate. This increase in borrow money will also inevitably impact the future generations in the UK. Future generations will be laid with burden of paying the national debt off.
This is just yet another sad economic story about how the recession is impacting different countries around the world. I am fairly concerned over the fact that in an attempt to get out of the current recession the British government is increasing the public debt but it seems as if they are only worrying about the present and not looking at the long term effects of their increase of public debt. Barring any economic boom that might happen in the future, future generations will be constantly burdened by cost of paying for the public debt left behind.
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http://www.cbc.ca/consumer/story/2009/03/26/competition-credit.html
The federal Competition Bureau is investigating the credit card industry. The agency is looking at whether the credit card industry has breached the Competition Act by increasing their credit card fees. Many consumers have complained about the increase of credit card fees over the past few months. Mastercard Canada defended itself by stating that "the many benefits Canadian merchants receive from card acceptance continue to be downplayed." According to StopStickingItToUs Coalition's website, Canadian consumers paid more than $4.5 billion dollars in hidden credit card fees alone and that figure is increasing even more due to hidden fees attacked to credit card users. Mastercard has refuted these statements by stating that they do not receive revenue from interchange or merchant fees. The website also attacked the Australian cap on credit card fees banks can charge businesses and consumers.
Transactions involving money happen every single day for Canadians. To make transactions easier on people, credit cards were invented so that consumers would not have to carry so much money on them. Credit cards have changed the demand for money in recent years due to the increasing popularity in them. If Mastercard and other credit card companies continue to increase fees for using their credit cards, then the demand for carrying actual money for transaction will increase. Especially in times of economic uncertainty, people will try to save money in every way possible so if that means to use their credit card less frequently and carry cash out more then they will do that.
In the long run, using straight cash is the cheapest transaction you can make because there are no hidden fees attacked to using plain cash. Although i can see the convenience of having a credit card because of convenience and safety reasons. I personally prefer to use cash instead of credit cards because there is no additional fees and because i can visibly see how much money i am using as opposed to paying it off 30 days later. I do not think it is a secret that their are hidden fees in using credit cards but that is the price to pay for having convenience in my opinion.
The federal Competition Bureau is investigating the credit card industry. The agency is looking at whether the credit card industry has breached the Competition Act by increasing their credit card fees. Many consumers have complained about the increase of credit card fees over the past few months. Mastercard Canada defended itself by stating that "the many benefits Canadian merchants receive from card acceptance continue to be downplayed." According to StopStickingItToUs Coalition's website, Canadian consumers paid more than $4.5 billion dollars in hidden credit card fees alone and that figure is increasing even more due to hidden fees attacked to credit card users. Mastercard has refuted these statements by stating that they do not receive revenue from interchange or merchant fees. The website also attacked the Australian cap on credit card fees banks can charge businesses and consumers.
Transactions involving money happen every single day for Canadians. To make transactions easier on people, credit cards were invented so that consumers would not have to carry so much money on them. Credit cards have changed the demand for money in recent years due to the increasing popularity in them. If Mastercard and other credit card companies continue to increase fees for using their credit cards, then the demand for carrying actual money for transaction will increase. Especially in times of economic uncertainty, people will try to save money in every way possible so if that means to use their credit card less frequently and carry cash out more then they will do that.
In the long run, using straight cash is the cheapest transaction you can make because there are no hidden fees attacked to using plain cash. Although i can see the convenience of having a credit card because of convenience and safety reasons. I personally prefer to use cash instead of credit cards because there is no additional fees and because i can visibly see how much money i am using as opposed to paying it off 30 days later. I do not think it is a secret that their are hidden fees in using credit cards but that is the price to pay for having convenience in my opinion.
http://www.cbc.ca/money/story/2009/01/30/canada-gdp-december.html
Canada's economy is continuing its slide and the country's economic output shrank by 0.7 per cent. Statistics Canada reported that a slumping construction activity and an struggling manufacturing sector has led to an "industrial race". This is the third one in four in which Canadian GDP contracted. Canada's national output shrank by 0.1 percent in October. In August the Canadian economy slipped by 0.5 percent which indicated a financial slowdown in Canada already. According to Statistics Canada, activity in the manufacturing sector declined by 2.1% in November and employment has fallen by 32,000 or 1.6 per cent compared to December 2008. Building trades were also down 1.2 per cent from November. Economists are estimating that the GDP will slip 0.4 per cent and this is the worst decline in a decade. RBC is forecasting that Canada's GDP will shrink in the final three months of the year by 2.5 per cent.
GDP is a major concept in Chapter 6. It is used to refer to the value of goods and services produced in Canada in a given year. When our GDP contracts, obviously that means that our economy is not producing goods and not providing efficient services to keep our economy afloat. This means a loss in jobs in sectors where they are not producing. Such sectors such as the manufacturing sector stated in the above article. In this time of economic uncertainty, people will generally save rather than spend because their jobs are no longer secure. This results in reduce in flow on income going to the business sector. In turn the business sector will have to cut back in order to gain profit which usually means layoffs for workers. This cycle keeps going and eventually our GDP gets effected. This is why our GDP is falling right now.
This is just another piece of evidence to illustrate the fact that Canada's economy is in very poor shape. The fact that our decline in GDP in November is the worst we have had in a decade is disheartening. For the past few weeks i have seen numerous articles regarding layoffs throughout Canada, particularly the big business such as GM. This is a clear example of business trying to cut back their losses and the common employee is getting the short end of the stick. There is some good news though, our economy is not doing as bad as our neighbors to the south and Japan. Their economy is in a far worse shape than ours currently. Our Canadian banks are very conservative in nature and that is helping our economy, while the American banks are less conservative.
Canada's economy is continuing its slide and the country's economic output shrank by 0.7 per cent. Statistics Canada reported that a slumping construction activity and an struggling manufacturing sector has led to an "industrial race". This is the third one in four in which Canadian GDP contracted. Canada's national output shrank by 0.1 percent in October. In August the Canadian economy slipped by 0.5 percent which indicated a financial slowdown in Canada already. According to Statistics Canada, activity in the manufacturing sector declined by 2.1% in November and employment has fallen by 32,000 or 1.6 per cent compared to December 2008. Building trades were also down 1.2 per cent from November. Economists are estimating that the GDP will slip 0.4 per cent and this is the worst decline in a decade. RBC is forecasting that Canada's GDP will shrink in the final three months of the year by 2.5 per cent.
GDP is a major concept in Chapter 6. It is used to refer to the value of goods and services produced in Canada in a given year. When our GDP contracts, obviously that means that our economy is not producing goods and not providing efficient services to keep our economy afloat. This means a loss in jobs in sectors where they are not producing. Such sectors such as the manufacturing sector stated in the above article. In this time of economic uncertainty, people will generally save rather than spend because their jobs are no longer secure. This results in reduce in flow on income going to the business sector. In turn the business sector will have to cut back in order to gain profit which usually means layoffs for workers. This cycle keeps going and eventually our GDP gets effected. This is why our GDP is falling right now.
This is just another piece of evidence to illustrate the fact that Canada's economy is in very poor shape. The fact that our decline in GDP in November is the worst we have had in a decade is disheartening. For the past few weeks i have seen numerous articles regarding layoffs throughout Canada, particularly the big business such as GM. This is a clear example of business trying to cut back their losses and the common employee is getting the short end of the stick. There is some good news though, our economy is not doing as bad as our neighbors to the south and Japan. Their economy is in a far worse shape than ours currently. Our Canadian banks are very conservative in nature and that is helping our economy, while the American banks are less conservative.
http://www.vancouversun.com/Business/announces+significant+layoffs+Vancouver+Black+studio/1207476/story.html
Electronic Arts has confirmed that it was making significant layoffs at its Black Box studio in Vancouver. Colin Macrae, Electronic Arts' director of communications, has said that this was part of the company's restructuring plan to save $120 million a year. EA has said that it planned to reduce its workforce by 10% and the cuts are to be finished by the end of March. It is rumored more than 200 people were expected to lose their jobs. This decision according to Macrae was about cost reduction and not related to the products that they produce which is the popular Skate and Need for Speed games. He also said that Vancouver is an expensive place to do business because of the competition for talent and the cost of real estate.
This chapter deals with economic indicators and there is much emphasis on unemployment. I believe that this type of unemplyment is demand-deficient unemployment. This type of unemployment states that this will happen when there is a lack of spending in the economy. As we all know, the economy is in a state of uncertainity. People are afraid to spend money and instead save money for the future. As people are saving money, business are losing money due to the lack of spending from the overall population.
It saddens me to see yet another company layoff their workers because of the economic conditions at this present time. More and more workers are out of jobs and this will only encourage people to not spend money. The gaming industry has suffered enourmously due to the economy. This is not an isolated incident, many video game companies are also laying off their workers. Video game designers are not in demand anymore. By having more layoffs, it is true that the company can save money, but the employees there will have more of a workload and the quality of their products will not be as good as it used to be. This will likely result in teenagers and young adults not buying the products because of the quality of the game.
Electronic Arts has confirmed that it was making significant layoffs at its Black Box studio in Vancouver. Colin Macrae, Electronic Arts' director of communications, has said that this was part of the company's restructuring plan to save $120 million a year. EA has said that it planned to reduce its workforce by 10% and the cuts are to be finished by the end of March. It is rumored more than 200 people were expected to lose their jobs. This decision according to Macrae was about cost reduction and not related to the products that they produce which is the popular Skate and Need for Speed games. He also said that Vancouver is an expensive place to do business because of the competition for talent and the cost of real estate.
This chapter deals with economic indicators and there is much emphasis on unemployment. I believe that this type of unemplyment is demand-deficient unemployment. This type of unemployment states that this will happen when there is a lack of spending in the economy. As we all know, the economy is in a state of uncertainity. People are afraid to spend money and instead save money for the future. As people are saving money, business are losing money due to the lack of spending from the overall population.
It saddens me to see yet another company layoff their workers because of the economic conditions at this present time. More and more workers are out of jobs and this will only encourage people to not spend money. The gaming industry has suffered enourmously due to the economy. This is not an isolated incident, many video game companies are also laying off their workers. Video game designers are not in demand anymore. By having more layoffs, it is true that the company can save money, but the employees there will have more of a workload and the quality of their products will not be as good as it used to be. This will likely result in teenagers and young adults not buying the products because of the quality of the game.
http://www.financialpost.com/news/story.html?id=1219586
Summary
Prime Minister Stephen Harper unveiled an new economic recovery plan. The federal government intends to spend what is necessary in order to stimulate our economy once again. The economic plan includes infrastructure spending, ensuring access to credit,financial help to struggling job sectors, and some measures to protect the "vulnerable". Harper believes that these actions will protect the jobs of today and help create new jobs of tomorrow. The Conservatives revealed that within this economic recovery plan that Canada will have a two-year deficit of 64 billion. 13 billion is going to be spent on spending initiatives which includes 7 billion being spent in infrastructure, 2 billion towards housing for low-income Canadians and 160 million for the arts community.
The federal government sensing that the economy is going to continue to sag, decided to do something about it. Harper is going to increase our federal expenditure in an attempt to get the economy back on its feet.Unfortunately our debt charges are going to go up because of this. Our other expenditures that will go up are transportation and housing.Harper did not reveal where the other amount of money is going to go to but regardless it is going to increase our federal expenditures substantially from the other years past.
I think this is a good initiative by the federal government. We need to try to get out of this economic slump as quickly as possible.Everyone is suffering because of this poor economic conditions.It is a good feeling to know that the government is trying to do something to help the people suffering,particularly the low-income Canadians. They are probably the ones suffering the most at this point.It frightens me that some speculate that Canadians face "several difficult years" of "unprecedented" uncertainty.I can't imagine several years of being in a economic recession but that is how it looks like at this point.
Summary
Prime Minister Stephen Harper unveiled an new economic recovery plan. The federal government intends to spend what is necessary in order to stimulate our economy once again. The economic plan includes infrastructure spending, ensuring access to credit,financial help to struggling job sectors, and some measures to protect the "vulnerable". Harper believes that these actions will protect the jobs of today and help create new jobs of tomorrow. The Conservatives revealed that within this economic recovery plan that Canada will have a two-year deficit of 64 billion. 13 billion is going to be spent on spending initiatives which includes 7 billion being spent in infrastructure, 2 billion towards housing for low-income Canadians and 160 million for the arts community.
The federal government sensing that the economy is going to continue to sag, decided to do something about it. Harper is going to increase our federal expenditure in an attempt to get the economy back on its feet.Unfortunately our debt charges are going to go up because of this. Our other expenditures that will go up are transportation and housing.Harper did not reveal where the other amount of money is going to go to but regardless it is going to increase our federal expenditures substantially from the other years past.
I think this is a good initiative by the federal government. We need to try to get out of this economic slump as quickly as possible.Everyone is suffering because of this poor economic conditions.It is a good feeling to know that the government is trying to do something to help the people suffering,particularly the low-income Canadians. They are probably the ones suffering the most at this point.It frightens me that some speculate that Canadians face "several difficult years" of "unprecedented" uncertainty.I can't imagine several years of being in a economic recession but that is how it looks like at this point.
http://www.thespec.com/News/article/453060
Summary:
President Bush thinks that as of right now Americans are shifting away from "near panic" but Bush warns Americans that they still have a long way to go to recover from the poor economy. Federal Reserve Chairman Ben Bernanke believes that this is the perfect time for the second government stimulus package. Earlier this year executed a $168 billion stimulus package which would have tax rebates and tax breaks for businesses. However, customers have cut back in spending due to the economy's current condition. Bush has been telling Americans that they must be patient and that his plans to re-energize the economy. Bush also stated that he is in support of government intervention because he is concerned about the effect it will have on small businesses.
Chapter 3: The role of the government in a market economy
In this article President Bush has already implemented and is also planning several things in an attempt to revitalize the sagging economy. It is especially vital for the government to intervene when the economy is looking bad because it will have some serious repercussions if it is left alone. President Bush does not want to see his country go into another depression. He has already implemented tax rebates and tax breaks in an attempt to ease the suffering of American citizens.
Reflection:
I believe that Bush has the right intentions with trying to help the economy but we have to wait and see if there are effective or not. At the very least he is making a honest attempt to relieve the pain that people are feeling from the economy. I am a firm believer that the government has to help ordinary citizens when the economy is looking bad. If the government were to do nothing then we have another depression and this depression will be felt around the world, much the depression in the 1930's that plagued the entire world until the start of World War II.
Summary:
President Bush thinks that as of right now Americans are shifting away from "near panic" but Bush warns Americans that they still have a long way to go to recover from the poor economy. Federal Reserve Chairman Ben Bernanke believes that this is the perfect time for the second government stimulus package. Earlier this year executed a $168 billion stimulus package which would have tax rebates and tax breaks for businesses. However, customers have cut back in spending due to the economy's current condition. Bush has been telling Americans that they must be patient and that his plans to re-energize the economy. Bush also stated that he is in support of government intervention because he is concerned about the effect it will have on small businesses.
Chapter 3: The role of the government in a market economy
In this article President Bush has already implemented and is also planning several things in an attempt to revitalize the sagging economy. It is especially vital for the government to intervene when the economy is looking bad because it will have some serious repercussions if it is left alone. President Bush does not want to see his country go into another depression. He has already implemented tax rebates and tax breaks in an attempt to ease the suffering of American citizens.
Reflection:
I believe that Bush has the right intentions with trying to help the economy but we have to wait and see if there are effective or not. At the very least he is making a honest attempt to relieve the pain that people are feeling from the economy. I am a firm believer that the government has to help ordinary citizens when the economy is looking bad. If the government were to do nothing then we have another depression and this depression will be felt around the world, much the depression in the 1930's that plagued the entire world until the start of World War II.
http://www.canada.com/vancouversun/news/business/story.html?id=bb60e317-df17-4be4-b07a-af79cdabbaf0
Summary:
The International Air Transport Association has reported that there has been “alarming” drop in passengers last month all around the world except Latin America. This decline is because of the high fuel prices and the decline in the global economy. This kind of drop in passengers has not happened since the SARS scare in 2003.Latin America saw an increase of 1.7 percent year over year while everyone else in the world saw a 2.9 percent year over year decrease. North American airliners saw a decline of 0.9 per cent during September after a trend of gradual increase of five percent in the previous months. Air Canada has similar troubles as their overall traffic has dropped by five percent last month.
The Operation of a Market: The Concept of Supply and Demand:
This chapter focuses on the concept of Supply and Demand. As you can read from the article, the demand for people who want to travel via airlines has decreased last month. There are several reasons for this. One of these reasons is because of the fact that due to the increase of gas prices, the prices of airline tickets has also increased. The increase in price has deterred people to travel via airplanes. People are either trying to find a cheaper alternative or wait until the gas prices has gone down a bit. Another reason is because of the fact that the global economy is doing so poorly, people are hesitant to spend their money and rather save their money just in case.
Reflection:
Its unfortunate that these two events(poor global economy and rising gas prices) happened at the same time. I predict that this trend of decreasing amount of passengers will continue until the global economy is on solid ground again and when gas prices also go down. Unfortunately it looks like that is not going to happen in the foreseeable future. The airline industry is going to suffer incredible due to this and there is very little that they can do about it. If this continues, they might reduce the amount of airplanes traffic and this in turn will layoff hundreds of jobs in the flight industry.
