Summery: The government published an incomes policy, which is mainly designed to secure a lower rate of price inflation by reducing the rate of increase in labour costs. “In other words, it is a policy of wage restraint, based on the view that it is the push of labour cost which leads corporations to raise their prices”. The policy will create more unemployment, and it has come increasingly to accompany high rates of unemployment and cuts in government spending on social service to induce deflation. The incomes policy is not designed to reduce our current high rate of unemployment.
Connection: In chapter eight there is a section talks about wage and price controls. The changing of price is an important aspect of the free-market system. It can provide information that helps both buyers and sellers to make decisions. When the price of a product increase, buyers may respond by cutting back on their purchases; sellers may see price increases as a signal that more of the product should be offered to the marketplace. If there is no control of that price changing, the market is going to break the balance. This may affect the whole country
Reflection: I think Harmonized Sales Tax (HST) is a kind of price control. Actually this is the way that the government earns more money. Before this, we could only pay PST which is 7% of the product’s price. Now we need to pay 12% of the product’s price, which is HST. I guess this is the way the government controls the prices. They rise up the prices directly by published the law, so that no one can refuse it. I really don’t think HST makes the economy of British Columbia better, because if all the products’ prices increase, people will buy fewer things. Therefore the economy falls down again.
Article: http://www.connexions.org/RedMenace/Docs/RM1-Wage&Price.htm
Friday, May 14, 2010
Thursday, April 8, 2010
Canada's unemployment rate hits its lowest point in 30 years!
Summery: The latest unemployment figures indicate only 6.7% of people out of work. It hits the lowest point in thirty years! “We reached this low level of unemployment only once before, in June 2000.” Most of the new jobs created last month were full-time positions, and many of them going to women and people moving from part-time to full-time employment. The strength of the construction sector is one of the engines powering this growth in employment opportunities. More than 20000 jobs are added to the economy by construction sector. “With the search for the right talent only getting hotter, there is no better time to post your resume on Monster and take advantage of the boom.”
Connection: In chapter five, it talks about five types of unemployment, which are demand-deficient unemployment, frictional unemployment, seasonal unemployment, structural unemployment and real wage unemployment. A person is certified as unemployment when he is available and willing to work but currently without work. An unemployment rate of 6.7% means every 100 people have 6.7 people currently without work. This is quite low to the economy. Since economic tsunami is not yet over, 6.7% is an exciting number to Canada’s economy.
Reflection: Many people are laid off during the hardest time of the economy. Over 50000 jobs are created shocks me. But I don't think this number is really realest “last month”. Probably the article was written in June 2009. Indeed the number was still exciting to us. The latest unemployment rate now is 6%. From the changing we can see the economy is recovering. More and more people back to their position, or find a new one. But the inflation is extremely faster than the recovering. Soon the HST comes up will affect all of us. At this point, even though the unemployment rate decreases, nothing really changes to us.
Article: http://content.monster.ca/7216_en-CA_p1.asp
Connection: In chapter five, it talks about five types of unemployment, which are demand-deficient unemployment, frictional unemployment, seasonal unemployment, structural unemployment and real wage unemployment. A person is certified as unemployment when he is available and willing to work but currently without work. An unemployment rate of 6.7% means every 100 people have 6.7 people currently without work. This is quite low to the economy. Since economic tsunami is not yet over, 6.7% is an exciting number to Canada’s economy.
Reflection: Many people are laid off during the hardest time of the economy. Over 50000 jobs are created shocks me. But I don't think this number is really realest “last month”. Probably the article was written in June 2009. Indeed the number was still exciting to us. The latest unemployment rate now is 6%. From the changing we can see the economy is recovering. More and more people back to their position, or find a new one. But the inflation is extremely faster than the recovering. Soon the HST comes up will affect all of us. At this point, even though the unemployment rate decreases, nothing really changes to us.
Article: http://content.monster.ca/7216_en-CA_p1.asp
Monday, March 1, 2010
Chapter7- Collecting 2010 Olympic coins
Summery: Start from February 23, 2007, seventeen commemorative coins marking the Vancouver 2010 Olympic and Paralympics games begin to circulating. About 350 million coins will be made from 2007 to 2010. “Three extra quarters will show Canadian athlete medalists that ordinary Canadians will be able to vote on in the run up to the games.” This circulation is sponsored by The Royal Canadian Mint. Also, 36 non circulating legal tender Vancouver 2010 commemorative coins are planned and will start to sell on 23 February 2007. “30000 special edition Uncalculated coin sets of the made for circulation coins, including the Vancouver 2010 quarters and loon dollars, will be produced annually“
Connection: In chapter 7, I have learned the identification of Canadian money, such as durable, portable, divisible, recognizable and readily accepted, not easily copied and face value greater than actual value. The object cannot be “money” without any of the identification above. The article says that “there will be 15 $25 face value sterling silver coins with a limited mintage of 45000 pieces of each.” The coin has a face value of twenty-five dollars, but the material of make the coin is actually greater than twenty-five dollars. Therefore, this Olympic coin is not able to be fiat money.
Reflection: Olympic coins are the witness to the winter Olympic. Indeed the coins are money, but they will not become the money we use in daily life. Also their potential appreciation is greater than normal money. For example, in the next 20 years, a $20 paper money is still worth $20. Even though the bank has published new version of paper bills, we can exchange a new 20$ with that old $20. But a face value of $25 coin might increase its price to $35 in 20 years. The witness to the history is always has a greater price than “money”.
Article: http://www.allnationsstampandcoin.com/newsletters/news90.html
Connection: In chapter 7, I have learned the identification of Canadian money, such as durable, portable, divisible, recognizable and readily accepted, not easily copied and face value greater than actual value. The object cannot be “money” without any of the identification above. The article says that “there will be 15 $25 face value sterling silver coins with a limited mintage of 45000 pieces of each.” The coin has a face value of twenty-five dollars, but the material of make the coin is actually greater than twenty-five dollars. Therefore, this Olympic coin is not able to be fiat money.
Reflection: Olympic coins are the witness to the winter Olympic. Indeed the coins are money, but they will not become the money we use in daily life. Also their potential appreciation is greater than normal money. For example, in the next 20 years, a $20 paper money is still worth $20. Even though the bank has published new version of paper bills, we can exchange a new 20$ with that old $20. But a face value of $25 coin might increase its price to $35 in 20 years. The witness to the history is always has a greater price than “money”.
Article: http://www.allnationsstampandcoin.com/newsletters/news90.html
Sunday, January 24, 2010
Chap4-The Income Tax History of Canada
Summery: As the topic we see, the article is basically all about the income tax history of Canada. The government of Canada did not charge income tax to encourage immigration to Canada. Since 1917, Canada charged income tax, because that was World War 1 period. “In 1917, the cost of participating in World War I had become too great, and the government was forced to temporarily adopt an income tax system in order to finance the war effort.” The Minister of Finance, Sir Thomas White has processed the “war” income tax.
Connection: In chapter 4, we learn the different kinds of taxes. Income tax belong to direct tax, which is a tax imposed on the person who is intended to pay the tax. All those money is used to provide public services to Canadian citizens, such as health care and education. Canada is a federalist country, so that the central government and provincial government have jurisdiction over each citizen. But all the income tax goes to the federal government, and the federal government distributes the money to provincial and central government. That’s where our tax goes.
Reflection: As we know, Canada’s welfare is one of the best in the world; most of the public services are free, or very cheap to pay. That is because Canada’s taxes rates are also one of the highest in the world. Some high income people pay almost one third of their incomes. In addition, we need to pay tax for all the goods we purchase, no matter just a bottle of drink, or a piece of bread. People basically agree that Canada’s taxes rates are too high. Looks like all the rich people pay their money to feed the poor people, to lower the disparity of the rich and poor people. Somehow this is a good method, but we all got annoying when we are buying goods.
Website: http://www.ehow.com/about_5379709_income-tax-history-canada.html
Connection: In chapter 4, we learn the different kinds of taxes. Income tax belong to direct tax, which is a tax imposed on the person who is intended to pay the tax. All those money is used to provide public services to Canadian citizens, such as health care and education. Canada is a federalist country, so that the central government and provincial government have jurisdiction over each citizen. But all the income tax goes to the federal government, and the federal government distributes the money to provincial and central government. That’s where our tax goes.
Reflection: As we know, Canada’s welfare is one of the best in the world; most of the public services are free, or very cheap to pay. That is because Canada’s taxes rates are also one of the highest in the world. Some high income people pay almost one third of their incomes. In addition, we need to pay tax for all the goods we purchase, no matter just a bottle of drink, or a piece of bread. People basically agree that Canada’s taxes rates are too high. Looks like all the rich people pay their money to feed the poor people, to lower the disparity of the rich and poor people. Somehow this is a good method, but we all got annoying when we are buying goods.
Website: http://www.ehow.com/about_5379709_income-tax-history-canada.html
Thursday, October 15, 2009
Supply-demand imbalance boosts oil prices
Summary: “Even as the cost of crude oil has soared in recent years, the amout pumped from the ground hasn’t” During the Financial Tsunami, the price of oil isn’t decreasing but increasing. The economy should not work in that way. The imbalance between supply and demand keeps pushing prices higher. “When a product is in short supply, the price rises, and the companies that make it usually produce more so they can cash in. Supply eventually outstrips demand and the price goes down..” The oil companies have to find more oil fields, but it is more and more difficult.
Connection: In chapter 2, demand and supply are very important to the market. They can control people’s desire to consume. The article provide a good example. Normally, when the supply decrease, the price increase for sure, then the companies will try their best to produce more to earn money. Once the supply outstrips demand, the price of the product goes down. Changes in demand also is effective in this case. Since the demand goes down, less people are going to buy the product. Of course the price goes down. There are a lot of elements to affact the market.
Reflection: This is very confusing. During the Finalcial Tsunami, the demand of oil suppose to decrease. But it really didn’t. Also it is very difficult to find big, untapped oil fields, which people often called “elephants”. When the oil companies can’t keep their output level of oil, the supply decreases and stays in a low level. This is why the price of oil seems never goes down. I heard someone said that the oil in the Earth is running out, and until 2025 there is no more oil to pump. This is scary because when we don’t have gasoline, how can we drive cars?
Article: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/26/BUHH10S61B.DTL
Connection: In chapter 2, demand and supply are very important to the market. They can control people’s desire to consume. The article provide a good example. Normally, when the supply decrease, the price increase for sure, then the companies will try their best to produce more to earn money. Once the supply outstrips demand, the price of the product goes down. Changes in demand also is effective in this case. Since the demand goes down, less people are going to buy the product. Of course the price goes down. There are a lot of elements to affact the market.
Reflection: This is very confusing. During the Finalcial Tsunami, the demand of oil suppose to decrease. But it really didn’t. Also it is very difficult to find big, untapped oil fields, which people often called “elephants”. When the oil companies can’t keep their output level of oil, the supply decreases and stays in a low level. This is why the price of oil seems never goes down. I heard someone said that the oil in the Earth is running out, and until 2025 there is no more oil to pump. This is scary because when we don’t have gasoline, how can we drive cars?
Article: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/26/BUHH10S61B.DTL
Tuesday, September 22, 2009
Economics 12- a Dismal Science
Summary: The article explain why Economics called “dismal science”. It was first told by Thomas Carlyle in December 1849. “In particular, Carlyle was criticising the economists belief in supply and demand which stood in sharp contrast to his idealised view of a slave society.”People in the Victorian age thought black people were inferior to white people. Carlyle is the one. But many economists believed in equality and freedom of the people. Economics support for black emancipation and the ending of slavery system. Therefore in Carlyles’s mind, economics is ”Quite abject and distressing...dismal science... led by sacred cause of Black Emancipation”.
Connection: At the beginning of Economics 12, Mr. Bach(my lovely business teacher) asks us to do some research about this topic “Why do we called Economics the ‘Dismal Science’”. I think he wants us to know the history of economics. Once we figure out the history of something, we can learn the knowledge quicker and deeper, also easier to understand them. One of the main point of economics is “free trade”. This coincides to the Black Emancipation. The Blacks hoped the word “freedom” for many years. “Free” is a bridge and bring economics and Black Emancipation together.
Reflection: I really hate the word ”dismal”. It is pretty negative. But economics is a good thing. It is the social science that studies the production, distribution, and consumption of goods and services. But economics is totally different from pure science such as chemistry， biology. While most of the environmental conditions can be controlled during the experiment in pure science, economic experiments are conducted under conditions that cannot be easily controlled. Same as the weather, economy changes in every moment. People never know what will happen next. For example, many people lost money in the recession that happened to us last year.
Article:http://www.economicshelp.org/2008/07/why-is-economics-called-dismal-science.html
Connection: At the beginning of Economics 12, Mr. Bach(my lovely business teacher) asks us to do some research about this topic “Why do we called Economics the ‘Dismal Science’”. I think he wants us to know the history of economics. Once we figure out the history of something, we can learn the knowledge quicker and deeper, also easier to understand them. One of the main point of economics is “free trade”. This coincides to the Black Emancipation. The Blacks hoped the word “freedom” for many years. “Free” is a bridge and bring economics and Black Emancipation together.
Reflection: I really hate the word ”dismal”. It is pretty negative. But economics is a good thing. It is the social science that studies the production, distribution, and consumption of goods and services. But economics is totally different from pure science such as chemistry， biology. While most of the environmental conditions can be controlled during the experiment in pure science, economic experiments are conducted under conditions that cannot be easily controlled. Same as the weather, economy changes in every moment. People never know what will happen next. For example, many people lost money in the recession that happened to us last year.
Article:http://www.economicshelp.org/2008/07/why-is-economics-called-dismal-science.html
Tuesday, May 19, 2009
Chapter16: Tax return for kids
Summary: The article talks about why we should file a tax return for kids. Basically children earn less than the basic personal amount, which was 9600 dollars in 2008; they still should file a tax return for a minor. First of all, one reason is to report income the child may have earned from casual, part-time or summer employment. “Filling a tax return early in life can bolster the amount that can later be socked away in an RRSP.” Now TFSA makes this strategy even more palatable. Young people starting their first jobs, and in the lowest tax bracket, are discouraged from making RRSP contributions until they get into a higher tax bracket.
Connection: In chapter 16, we learned about tax return. Not just adults but also teenagers need to file a tax return, even though their tax payment is small. After children file a tax return, they can put some of the money into TFSA (the recent introduction of the tax-free savings account), which is same as RRSP (Registered Retirement Savings Plan). These two accounts let us save our money for our retirement and lower our income taxes. The only difference is, TFSA is for lower tax bracket, and RRSP is for higher tax bracket.
Reflection: When I was 16, my mother told me to file a tax return. The only thing I knew from that time is to let the government created my file. After I read this article, I understand everything. Even teenagers need to plan their retirement. Once we plan it earlier, we could have a comfortable retirement. More over, RRSP/ TFSA are a kind of life insurance. They work the same way to protect ourselves. Also RRSP has another benefit, which can lower the income. Since we have a higher income, we suppose to pay more taxes, or get a lower tax return. But when we purchase RRSP, we can pay fewer taxes, or get a higher tax return.
Article: http://www.canada.com/business/story.html?id=1462907
Connection: In chapter 16, we learned about tax return. Not just adults but also teenagers need to file a tax return, even though their tax payment is small. After children file a tax return, they can put some of the money into TFSA (the recent introduction of the tax-free savings account), which is same as RRSP (Registered Retirement Savings Plan). These two accounts let us save our money for our retirement and lower our income taxes. The only difference is, TFSA is for lower tax bracket, and RRSP is for higher tax bracket.
Reflection: When I was 16, my mother told me to file a tax return. The only thing I knew from that time is to let the government created my file. After I read this article, I understand everything. Even teenagers need to plan their retirement. Once we plan it earlier, we could have a comfortable retirement. More over, RRSP/ TFSA are a kind of life insurance. They work the same way to protect ourselves. Also RRSP has another benefit, which can lower the income. Since we have a higher income, we suppose to pay more taxes, or get a lower tax return. But when we purchase RRSP, we can pay fewer taxes, or get a higher tax return.
Article: http://www.canada.com/business/story.html?id=1462907
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