Canada lost 129,000 jobs in January: StatsCan

Link: http://www.cbc.ca/money/story/2009/02/06/januaryjobs.html

Summary

Canada's job losses in January has been the worse compared to the previous economic downturns in the 1980s and 1990s. Currently, almost more than 120,000 full-time jobs are lost. These job losses include in specific areas such as motor vehical manufacturing, production of furnitures, and computers and electronics. All these areas of unemployment are effected in British Columbia (18,000), Quebec (30,000), and in Ontario (71,000). The unemployment rate has increased by 0.6 percent in January to 7.2 percent. This increase of job losses will continue to grow and thus, leading to a major recession. Economists has described the situation during January's job losses as "horrible" and "shockingly poor." As bad as this sounds, there is still hope. A BMO economists has predicted that "Canadian unemployment rate to break through eight per cent by the end of this year." That being said, BMO plans to announce another interest rate cut in March.

Relationship
In chapter 5, we learn the importance of employment and unemployment. In this case, it is obvious that the economy is facing an increased amount of unemployment as people are being laid-off. To determine an approximate amount of unemployment and employment in Canada, we use the Labour Force Survey. It provides monthly data on Canada's unemployment rate which is calculated with a formula: unemployment = unemployed/labour force
The survey provides information on the number of unemployed, but not on the number of job vacancies. That is, the solution to the unemployment problem depends on the number of job vacancies available. Thus, if jobs are available, then a way will have to be found to match the unemployed workers to the available opportunities. This relates to the article as many people are being laid-off are in need of jobs. Also, in the chapter, it states that sex and age are affected differently. In 2002, men who were 25-44 years old had an unemployment rate of 7% while women of the same age had an unemploymnet rate of 6.7%. In this case, it is not true as the whole economy is affected the same way. People are losing their jobs either if they were male or female, ages 24 or 50. In addition, in the article, economists have stated that Canadian job losses has gotten even worse compared to previous years. To give a general idea of how bad it has been for the past couple of months, the unemployment rate was only 3.4% in 1966, 5% in 1990s, and 5% in 2002. Compared to now, we currently have an unemployment rate of 7.2% a 15 year high according to Bureau of Labor Statistics.

Conclusion
As we can see, the labour Force Survey is an important tool to our country and economy. It helps determine an approximate percentage of employment and unemployment. Most importantly, it shows us what we have to work on. If in this example, economy is suffering from a recession and many people are losing jobs, then we need to start finding solutions and providing more jobs. Though this info is useful, it is not necessarily accurate. Many factors such as participation rate affects the result of these surveys. Thus, economist still make approximations to help balance our economy.

How Canada can beat tough times

Link: http://www.nupge.ca/node/805

Summary
Currently, as we all know, our economy is facing a recession. The world slowdown triggered by the US subprime mortgage debacle dragged Canada into a financial crisis. Economists believe that the economy will continue to decline for at least another few years. Moreover, Canada’s parliamentarians plan to gather next week to debate the federal budget and how they will increase benefits to the economy. Many issues were brought up to question as to who/what will be funded by the federal government.

Chapter 4 Relationship
Referring to chapter 4, having the federalist system is important. Giving limited powers to provincial governments and more power to federal government helps balance levels of issues. In this case, due to national crises, federal government has forced itself to intervene in the situation to assist provincial governments. Public services such as health care, education and public services need to be properly funded, as it is the second highest expense. “It is important that intelligent policy decisions be taken to carry us through tough times while protecting past gains and ensuring a better future.” This statement is very true and is extremely important. Even if we manage to relieve the economy recession, we may face the same situation in the future if we do not plan carefully. What we need is a national public services investment plan funded by initiatives and coordinated between levels of government. Having this service plan will help shelter people’s money, allowing it to build-up on interest. Another connection with the chapter is borrowing money. Right now, some business can’t borrow money because of reduction in credit. The reduction in credit is mostly because businesses have not been making much money from scared consumers. People are afraid of spending money, as some already face the issue of household debts and unemployment. If workers are fearful for their job they are more likely to save rather spend. Like James said, “spending is the economic motor. When economic spending declines it is because spending is slowing.” This is a major problem for businesses because they need to borrow money in order to purchase goods to make profit. If they cannot make profit, the most likely situation for these businesses is bankruptcy. Also, many people will be laid-off like we have seen already in the public sector.

Reflection
Right now, there are several solutions brought up. We can either wait for the world to bail us, wait for businesses to increase spending and investments or have government borrow and invest money in our future. In my opinion, the third option makes most sense at this time. “The federal government today has greater fiscal room to stimulate the economy than virtually every other nation” (Clancy, 2009) Therefore, the governments have an opportunity to provide Canadians with more secure returns on financial bonds. If governments imposes a new tax free savings account which will pay competitive rates with no service charges, people will be attracted to it, thus spending will rise again. Subsequently, the rise in spending will lead to many benefits for businesses.

Prospect for U.S. auto bailout dims as Senate races clock

Link: http://www.cbc.ca/money/story/2008/11/19/usautos.html?ref=rss

Summary
Currently, automakers are facing a dangerous decline, which would lead them to bankruptcy. The Republican U.S senators, with White house support, provided a last minute plan to give $25 billion US dollars to bail out U.S automakers. If the plan succeeds, then automakers will have enough money to pass before the end of the week. Unfortunately, it is predicted that the bailout would have to wait till the new Barack Obama administration takes over in January. Also, another issue had been brought up about the fact that the government had chosen to bailout banks, but not the automakers. "Barney Frank asked how the government could justify a bailout for banks and insurers,but not the automakers."

Chapter 3 The Role of Government in a Market Economy
This article ties into the chapter of the role of government in a market economy perfectly. As stated in the summary, automakers such as GM, Ford MotorCo., and Chrysler are now in desparate need for a bailout from the government. Keep in mind, these automakers are privately owned, which means that government does not own it. In this type of issue, even though the automakers' company is privately owned, government can intervene when issues get out of hand. Right now, the government is debating whether they should bailout these automakers. If the government does bailout these companies, there would be positive third party affects. Current employees would be able to keep their job and earn a living. It would somewhat avoid anymore declining in economy, but if it fails, many people will be laid off and economy would decline even more.

Reflection
I think that government will bailout these automakers. There are many news ads on this article and everyone is aware of the situation. Public opinions may make an impact on the government's decision. The reason is because if they don't, more people will be laid off, which affects the economy negatively. People would avoid purchasing any goods, due to the lack of income. Also, I agree with Barney Franks's statement. If the government is willing to bailout bank companies, why not GM, Ford Motors, or Chrysler? These are all big companies that make big money. Thus, it would be the best interest for everyone if the government initiates the $25 billion bailout.

Apple cuts prices on notebooks

Link: http://www.canada.com/theprovince/technology/story.html?id=ad639250-c1ae-4c79-876b-f35fba728aa8

Summary
It was just announced a few days ago that Apple has released their new-line of aluminum-clad Mac Books and Mac Books Pros at $1,299. New improvements has be made. The new Mac Books now use Nvidia Corp graphics and Intel Corp processors. Also, Apple has changed the appearance to a more high-end look with an aluminum-clad finish, instead of plastic. Apple has chosen to follow on their annual strategy of replacing older products and keeping the same pricing. The old glossy white and black Mac Books are now replaced and price has dropped down to just $999. At a $100 price-cut, Apple may face a disappointing result, as they may not be able to sell out all their old Mac Books.

The Operation of a Market: Supply & Demand
Since the new line of aluminum-clad Mac Books has just been released, the old Mac Books' prices have been cut down to $999. The new improvements on the aluminum-clad Mac Books make them even more irresistible to have. Like all of Apple's products, appearance is one of the biggest factors why people like their products. By replacing the older model with better physical design and processor, people would lean towards the newer model even though the old Mac Book is cheaper because of their tastes and preferences. This is an example of demand. As the older models are being phased-out, demand for them are less, which means Apple will have to do something to sell out their remaining stock of the older Mac Books. Without compromising the price too much, Apple applied a $100 price cut on the older Mac Books. In most circumstances, people will buy more of a product if the price is low and less of it if the price is high. Keep in mind, Apple may be disappointed by the fact that their older line of Mac Books may not sell really well due to the fast, declining economy. Usually when income is low, the quantity demand is low, but because customers are now more aware of the economy and the possible future prices, sale percentages are expected to drop. Although, economies are dropping, Apple is not worried about selling their new-line of Mac Books, as they have always exceeded their expectations. As for the new Mac Books, the demands for them are high, which means that the supplies are high as well. As the concept of demand states, “ if they continue to buy a certain product, it will continue to be produced.” Apple would need to manufacture more shipments of Mac Books in order to meet people's demands.

Reflection
First of all, I personally think that the consumers' response to the price changes for both the new and old Mac Book will affect Apple greatly. Apple will continue to increase their sales, even though most people already own a Mac Book. The number and characteristics of buyers is probably one of the main factors that will push the sale of the new Mac Books. The current generation and age group are dedicated to new technology, and because of this, Apple has been successfully selling previous products. Also, Apple does a great job advertising and designing their products, making them very user-friendly, which matches very well with consumers’ tastes and preferences that are new to the industry. The more the consumers are exposed to a certain brand through advertising, their purchase choices are likely to be affected. Also, I must say Apple is truly brilliant for their work because of the fact that they based their commercial for the new line of Mac Books on their production. It shows the “production cost,” going through the steps of producing the goods from the raw material to the finished product. When people see the time and effort placed on a product, they would want it more. As for the supply side, Apple will be able to manufacture more of the product because of the high-set price. Keep in mind Apple has never had a single product where very few people wanted. Although I believe that the new Mac Books will successfully sell out to consumers, I don't think they'll set any new records with this product. Declining economies are affecting everyone around the world right now, and are probably facing financial issues. Not only that, but people might decide to purchase a PC laptop due to a change in the price of substitute products. PC usually ranges from $300-$800, while Macs are $1000+. Apple will no doubt manufacture thousands of the new Mac Books to retailers, meeting the demand of the people. Thus, supply and demand will continue to increase till the next product from Apple is released.

Nanotechnology: good for golf balls, bad for health?

Link: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080914/nanoparticle_controversy_080914/20080914?hub=Health&s_name=

Summary
Nanotechnology has just recently been announced to help produce the next generation of products. So what exactly are these nanotechnologies? Basically, they are tiny particles in forms of silver, gold, carbon, and even bamboo that are shrunken down to extreme sizes. The plan is to use these tiny particles as an extra ingredient to a variety of new products, such as scratch-resistant paint, golf balls that can go farther and medications that can destroy cancer cells. Also, they plan to incorporate these particles into clothing, which are capable of killing odors (GREAT FOR YOU SWEATY PEOPLE OUT THERE). Scientists are still studying this new nanotechnology to ensure that it is safe for consumers. For now, it still poses a risk to the environment and to the human health due to its toxic materials.

Introductory Concept: Opportunity Cost
Since “nanotechnology” has been brought up, many have been wondering what are the benefits. This new technology allows companies to inject a new generation of substances into new products, making it more beneficial than before. An example stated in the article would be the clothing people wear. With the new nanotechnology, clothing would have the ability to absorb and kill odor at the same time. This may sound appealing, but what is it sacrificing? What is the opportunity cost? Study show that the nanoparticles can cause damage to our environment and to our bodies when they leak out of products. This is a major issue today because of the green house affects. Ever since the green house gas effect has been brought up, people are changing their lifestyles to become more environmentally friendly. Not only that, but it can also cause damage to our bodies, due to the toxic materials that may leak onto our skin. The cost of damaging our body is much more costly than purchasing clothing that may harm us. If particles did leak onto our skin, we would need to pay for medical treatments to cure ourselves. As you can see, the cost of product alone may end up cost of product+ risk + injury + time and money towards medical treatment, which is more costly than you think. Thus, the opportunity costs for the production of nanotechnology are the pollutions in our environment and the risk of danger towards our health.

Reflection
Nanotechnology is going to be the next big thing. In my opinion, nanotechnology in general will do well in the market. Demands for nanoparticals in products would be high, especially the fact that it can serve for important purposes. For example, nanoparticals can serve as a medication for cancer and it can kill odor when incorporated into clothing. Thus, athletes and cancer patients would demand for this production to continue. In my opinion, the opportunity cost of including these nanoparticals to new products is minor. Damages to the environment from the substances in nanotechnology are negligible compared to the amount of damages caused from our transportation. Although I agree with most of the production of nanotechnology, I do not think it's a good idea to incorporate them in clothing. It poses a higher risk of side effects, which results in injury and more money for medical treatment. By allowing the production of nanotechnology, the products we buy, and basically our lifestyle will be improved.

Economic Link List

Okay people, I have the class list located on the right column. If you guys wanna do the same just add gadget in layout, Link List, and manually import the links + name.