http://www.vancouversun.com/Business/Canadian+housing+starts+tumble+February/1369898/story.html
Summary
The Canadian real estate market is weakening alongside the economic downturn and the high unemployment. In our province of BC, real estates have been down 75% compared to just one year ago. According to Canada Mortgage and Housing Corporation, in January there were 153,500 housing starts whereas in February there were only 134,600 units, which is a decrease of 12.8%. There are a lot of economists that expected the housing starts in February to be 145,000, but that was not the case. “Increase listings and reduced sales in the existing home market continue to impact the new home market,” CMHC chief economist Bob Dugan comments. Constructions in urban areas fell 14.9% from January to February, while the numbers remained constant in rural areas. Dugan says, “Home construction is slowing to more sustainable levels”.
Connection
As we learned in Chapter 6, the paradox of thrift exists when people attempt to save but they end up saving less. We can relate this article to that theory. Even though people are trying their best to save right now due to the economic downturn we’re experiencing, it may not be the best way of reacting to this situation. Right now it may sound good to spend less and save up so the individuals would be better off in the future. But thinking with an economic mind, it is a very bad decision to hold onto your money. To improve our economy that isn’t doing too well, it is beneficial to have cash flowing through the economy. Spending money though it is good for the economy, individuals do not like the idea. I guess this is because they like to know they have money saved up which can be put into use when the time comes.
Reflection
Due to the economic downturn, it makes sense for individuals to hold back on purchasing houses. This recession has a lot of citizens worrying about whether or not they can survive these hard times. But everyone is aware of the 2010 Winter Olympics will be taking place all throughout the Lower Mainland. I read an article somewhere about the estimated cost for living a night in the Lower Mainland during the Olympics. Prices ranged from $300 - $500 / room for one night in Vancouver. As for whistler, hotel rooms could cost up to $900 a night. Once tenants are aware of this situation which will be happening as soon as next year, I believe housing sales will start rising again. Even if a citizen were to try to save money right now by only renting instead of owning a house, they are only saving a small amount of money. When it comes to winter 2010, the cost of renting would increase dramatically. So by attempting to save right now, the citizens are actually not saving. This situation would be an example of paradox of thrift.
Monday, March 9, 2009
Monday, February 23, 2009
Chapter 5: We’re No. 1: BC records biggest increase in year-over-year EI recipients
http://www.vancouversun.com/records+biggest+increase+year+over+year+recipients/1324021/story.html
Summary
According to a Statistics Canada survey that came out on Tuesday, BC has the country’s greatest increase in recipients receiving Employment Insurance (EI) in December. All provinces rose in the amount of regular EI recipients during the month of December. With the highest increase, BC was at 33.2%, with Alberta at 30.3% and Ontario at 29.6%. The actual number of increase of Canadians receiving EI was 79,100 between December of 2007 and 2008, which is a 16.6% increase. Breaking it down to gender, the percentage of men receiving EI had an increase of 21.7% and for women it was an increase of 8.6%. Since the start of the economic crisis at the end of 2008, the numbers are steadily rising. In January, 35,000 jobs were lost, which puts British Columbia’s unemployment rate at 6.1%.
Connection
As learned in chapter 5, the three ways of analyzing a country's economy are: unemployment, inflation, and the level of business activity. Obviously this article relates to the 1st factor which is unemployment. Seeing how high the unemployment rate in Canada is, it just confirms how our country isn't doing too well. Even though it may not seem like it, but citizens that are unemployed actually have an affect on those who are employed. When workers lose their job, they also lose their ability to pay taxes. When a lot of jobless people aren't able to pay taxes, the burden is added onto those who are able to pay. With the added taxes that covers the people who can not pay, the working people also has to pay additional tax that will support those the unemployed until they find a job.
Reflection
After reading this article, I started thinking. There are so many factors that can lead to unemployment, yet we’re in the middle of an economic crisis. Could the rise in numbers on EI recipients totally be blamed on that factor? I understand that with the global turndown, of course our country would be affected. Hundreds of thousands of jobs in every economic sector have been lost mainly due to this problem. Especially at this time, I would definitely not like to be in the position of someone without a job. I've heard stories from my relatives. The companies that they work for are all thinking of or if they haven't already done so to cut back on employees. This news of possible lay-off has gotten all the employees worried and concerned. I am very fortunate to be working at a company where they have not initiated any desire to laying off workers.
Summary
According to a Statistics Canada survey that came out on Tuesday, BC has the country’s greatest increase in recipients receiving Employment Insurance (EI) in December. All provinces rose in the amount of regular EI recipients during the month of December. With the highest increase, BC was at 33.2%, with Alberta at 30.3% and Ontario at 29.6%. The actual number of increase of Canadians receiving EI was 79,100 between December of 2007 and 2008, which is a 16.6% increase. Breaking it down to gender, the percentage of men receiving EI had an increase of 21.7% and for women it was an increase of 8.6%. Since the start of the economic crisis at the end of 2008, the numbers are steadily rising. In January, 35,000 jobs were lost, which puts British Columbia’s unemployment rate at 6.1%.
Connection
As learned in chapter 5, the three ways of analyzing a country's economy are: unemployment, inflation, and the level of business activity. Obviously this article relates to the 1st factor which is unemployment. Seeing how high the unemployment rate in Canada is, it just confirms how our country isn't doing too well. Even though it may not seem like it, but citizens that are unemployed actually have an affect on those who are employed. When workers lose their job, they also lose their ability to pay taxes. When a lot of jobless people aren't able to pay taxes, the burden is added onto those who are able to pay. With the added taxes that covers the people who can not pay, the working people also has to pay additional tax that will support those the unemployed until they find a job.
Reflection
After reading this article, I started thinking. There are so many factors that can lead to unemployment, yet we’re in the middle of an economic crisis. Could the rise in numbers on EI recipients totally be blamed on that factor? I understand that with the global turndown, of course our country would be affected. Hundreds of thousands of jobs in every economic sector have been lost mainly due to this problem. Especially at this time, I would definitely not like to be in the position of someone without a job. I've heard stories from my relatives. The companies that they work for are all thinking of or if they haven't already done so to cut back on employees. This news of possible lay-off has gotten all the employees worried and concerned. I am very fortunate to be working at a company where they have not initiated any desire to laying off workers.
Monday, February 2, 2009
Chapter 4: OMERS posts $8-billion loss for 2008
http://www.theprovince.com/business/fp/OMERS+posts+billion+loss+2008/1320127/story.html
Summary
OMERS Administration Corporation (Ontario Municipal Employees Retirement System), which is one of Canada’s biggest pension funds, has reported that in 2008, more than $8-billion was loss due to the global economic crisis. Comparing this year’s $8-billion net investment loss to last year’s profit of $3.9-billion, there is a significant difference. The pension fund has more than $52-billion and has an effect on around 390,000 Ontario municipal employees, such as police, firefighters, and transit workers. In 2008, the pension fund had a negative 15.3% rate of return whereas in 2007, its return rate was 8.7%.
Connection
This article relates to the sources of government revenue in which we learned in chapter 4. A lot of the government’s spending comes from taxes imposed on the citizens. As for OMERS, 70% comes from investments and the remaining 30% is directly from employee and employer contributions. But because of the global economic turndown, the 70% funding from investments have decreased drastically. This will have a direct effect on the budgeting of these pension plans. Even though OMERS does not tie in with the government’s spending, it is a group that supports employees that work/worked government jobs. OMERS is beneficial to municipal workers and their net loss in their investments affect them directly.
Reflection
Ontario Municipal Employees Retirement System (OMERS) may not have any effect on me. In a sense, it does relate to me. As an employee of the Vancouver Public Library, if there was an OMERS for our city, I would not be very happy with what’s going on currently for OMERS. Since employees have CPP deducted from their income, it only sounds fair if they receive what they anticipated. But I understand that not everything in life is going to work the way it was set out to. The economy going bad was definitely not something that anyone could have controlled. Its just sad to hear that the pension fund had decrease over 10% compared to last year. Especially since inflation is going up, with the pension fund decreasing, it would be very hard for the senior citizens to buy what little they can.
Summary
OMERS Administration Corporation (Ontario Municipal Employees Retirement System), which is one of Canada’s biggest pension funds, has reported that in 2008, more than $8-billion was loss due to the global economic crisis. Comparing this year’s $8-billion net investment loss to last year’s profit of $3.9-billion, there is a significant difference. The pension fund has more than $52-billion and has an effect on around 390,000 Ontario municipal employees, such as police, firefighters, and transit workers. In 2008, the pension fund had a negative 15.3% rate of return whereas in 2007, its return rate was 8.7%.
Connection
This article relates to the sources of government revenue in which we learned in chapter 4. A lot of the government’s spending comes from taxes imposed on the citizens. As for OMERS, 70% comes from investments and the remaining 30% is directly from employee and employer contributions. But because of the global economic turndown, the 70% funding from investments have decreased drastically. This will have a direct effect on the budgeting of these pension plans. Even though OMERS does not tie in with the government’s spending, it is a group that supports employees that work/worked government jobs. OMERS is beneficial to municipal workers and their net loss in their investments affect them directly.
Reflection
Ontario Municipal Employees Retirement System (OMERS) may not have any effect on me. In a sense, it does relate to me. As an employee of the Vancouver Public Library, if there was an OMERS for our city, I would not be very happy with what’s going on currently for OMERS. Since employees have CPP deducted from their income, it only sounds fair if they receive what they anticipated. But I understand that not everything in life is going to work the way it was set out to. The economy going bad was definitely not something that anyone could have controlled. Its just sad to hear that the pension fund had decrease over 10% compared to last year. Especially since inflation is going up, with the pension fund decreasing, it would be very hard for the senior citizens to buy what little they can.
Tuesday, November 18, 2008
Chapter Three: Private Health Care
http://www.canada.com/story.html?id=863404
Summary
This article clearly lets the reader know the huge difference between the public and private health care systems. Private clinics charge $3,900 the first year and $2,900 every year onwards. Visibly, bystanders were able to distinguish a major distinction between the two different types of office. In a private office such as Copeman’s Healthcare Centre, there were “sleek furniture, oil paintings, and seasonal fruit”, whereas in a normal public clinic, the waiting rooms were overfilled with severely sick patients.
Connection
Having private health clinics may sound like something that citizens can gain from, but this strongly depends on the patient’s income level. The government plays a big role in controlling this factor, trying their best to achieve a balance. Currently Canada has a public health care system where everyone is equal. Whether a person is rich or poor, their access to health care is the same. The severity of the patient’s sickness determines how the medical professionals will treat them. Each and every patient pays the same fee for the same check-up or the same treatment. On the other hand, in a private health care system like US, the citizens with more cash are eligible for more service and better service.
Reflection
This huge discrepancy between the public and private health care systems only adds to the gap between the rich and the poor. I like the way Canada’s health care system is operating at the moment. Having a public health care system like ours will ensure that every patient will get their needs met in order of priority. Doctors and nurses will treat everyone the same whether they’re rich or poor. This equality towards everyone will give the citizens more confidence in their government. The government setting regulations on the health care system, to ensure that all the needs of the citizens are met, lets everyone know that the government is looking out for them. This is why I am in favour of the public health care system that our nation has.
Summary
This article clearly lets the reader know the huge difference between the public and private health care systems. Private clinics charge $3,900 the first year and $2,900 every year onwards. Visibly, bystanders were able to distinguish a major distinction between the two different types of office. In a private office such as Copeman’s Healthcare Centre, there were “sleek furniture, oil paintings, and seasonal fruit”, whereas in a normal public clinic, the waiting rooms were overfilled with severely sick patients.
Connection
Having private health clinics may sound like something that citizens can gain from, but this strongly depends on the patient’s income level. The government plays a big role in controlling this factor, trying their best to achieve a balance. Currently Canada has a public health care system where everyone is equal. Whether a person is rich or poor, their access to health care is the same. The severity of the patient’s sickness determines how the medical professionals will treat them. Each and every patient pays the same fee for the same check-up or the same treatment. On the other hand, in a private health care system like US, the citizens with more cash are eligible for more service and better service.
Reflection
This huge discrepancy between the public and private health care systems only adds to the gap between the rich and the poor. I like the way Canada’s health care system is operating at the moment. Having a public health care system like ours will ensure that every patient will get their needs met in order of priority. Doctors and nurses will treat everyone the same whether they’re rich or poor. This equality towards everyone will give the citizens more confidence in their government. The government setting regulations on the health care system, to ensure that all the needs of the citizens are met, lets everyone know that the government is looking out for them. This is why I am in favour of the public health care system that our nation has.
Wednesday, October 15, 2008
Chapter Two: Demand / Supply
http://www.canada.com/theprovince/news/money/story.html?id=b8cd8389-5d2c-48ab-be30-584cc049ed45
Summary
Prices for diamonds are significantly rising. Because of the limited global supply, diamonds are very unlikely to meet the expected demands. Beginning 2007, prices of some three-carat diamonds have already risen fourfold. The stocks of Harry Winston, a renowned and luxurious jewellery store has rose from $1.52 to $14.54 at 1:24pm on October 1st. This jump of 12 per cent is the largest one-day increase since November 4th, 1999. “Rough diamond supply is likely to fall short of expected demand within the next three to five years,” RBC Capital Markets analyst Des Kilalea told clients on August 27th.
Connection
This article is related to what we have learned in chapter two in a sense that demand and supply are interconnected. The demands for diamonds have always been high due to the belief and theory that diamonds are the best presents any girl could possibly get. Because diamonds are a non-renewable resource, the quantities available for extracting from our Earth’s mines are limited. When demand is high and the supply is low, like the diamonds, we have a rapid increase in the value of the substance. Diamonds don’t really have a substitute other than the other rocks, but they don’t seem to be too popular, so diamonds continue to have that slowly but steady rise in demand.
Reflection
Growing up, I’ve constantly heard the phrase, “Diamonds are a girl’s best friend”. Perhaps because we’ve been brought up in a society where diamonds are the most expensive and most exquisite jewellery out there, everyone has this impression that it is true. In events of special occasions such as a man proposing to the love of his life, it is almost a guarantee that they will get engaged with the help of a diamond ring. As people continue celebrating milestones in their lives, the demand of diamonds will continue to soar. With the demand increasing, supply will decrease alongside, which will result in an increase on the price of diamonds. When it comes to the time that I get proposed to, even though its unlikely, I hope the price for diamonds won't be as high as they are now. Better yet, it might be a wiser decision for my future fiancé to buy me another stone for our engagement. But it appears that most countries are heading if not already in recession, so that would mean citizens are unlikely to spend money on items that aren't neccesities. With people holding onto their money and unwilling to spend it, the demand of diamonds may slowly decrease.
Summary
Prices for diamonds are significantly rising. Because of the limited global supply, diamonds are very unlikely to meet the expected demands. Beginning 2007, prices of some three-carat diamonds have already risen fourfold. The stocks of Harry Winston, a renowned and luxurious jewellery store has rose from $1.52 to $14.54 at 1:24pm on October 1st. This jump of 12 per cent is the largest one-day increase since November 4th, 1999. “Rough diamond supply is likely to fall short of expected demand within the next three to five years,” RBC Capital Markets analyst Des Kilalea told clients on August 27th.
Connection
This article is related to what we have learned in chapter two in a sense that demand and supply are interconnected. The demands for diamonds have always been high due to the belief and theory that diamonds are the best presents any girl could possibly get. Because diamonds are a non-renewable resource, the quantities available for extracting from our Earth’s mines are limited. When demand is high and the supply is low, like the diamonds, we have a rapid increase in the value of the substance. Diamonds don’t really have a substitute other than the other rocks, but they don’t seem to be too popular, so diamonds continue to have that slowly but steady rise in demand.
Reflection
Growing up, I’ve constantly heard the phrase, “Diamonds are a girl’s best friend”. Perhaps because we’ve been brought up in a society where diamonds are the most expensive and most exquisite jewellery out there, everyone has this impression that it is true. In events of special occasions such as a man proposing to the love of his life, it is almost a guarantee that they will get engaged with the help of a diamond ring. As people continue celebrating milestones in their lives, the demand of diamonds will continue to soar. With the demand increasing, supply will decrease alongside, which will result in an increase on the price of diamonds. When it comes to the time that I get proposed to, even though its unlikely, I hope the price for diamonds won't be as high as they are now. Better yet, it might be a wiser decision for my future fiancé to buy me another stone for our engagement. But it appears that most countries are heading if not already in recession, so that would mean citizens are unlikely to spend money on items that aren't neccesities. With people holding onto their money and unwilling to spend it, the demand of diamonds may slowly decrease.
Thursday, September 25, 2008
Chapter One : Direct / Opportunity Costs
http://www.canada.com/theprovince/news/sports/beijing2008/story.html?id=5a9d7410-69b4-4583-b58d-fa74ab9d60a5
Summary
Now that the summer Beijing Olympics 2008 is over and done with, everyone is turning their attention to the winter Vancouver Olympics 2010. Anticipation for the winter Olympics is growing larger and larger especially since Beijing spent a massive sum of $45 billion on the Summer Games. Mayor Sam Sullivan believes in the great possibilities that could be brought upon our city because of 2010. "People will speak about Vancouver before 2010 and after 2010, and my goal has been to make sure that we are ready to take that opportunity." Even with the Winter Games nearing, the numbers set for the security budget is still yet to be finalized. Originally they came up with the figure $175 billion, but soon they had second thoughts worrying that it wouldn’t be adequate. Cleaning up the homeless people in the city centre is another factor that has always been near the top of the list. Citizens of Vancouver are concerned that the cost for this event may be too high.
Connection
This article is related to our text in that there are obvious direct and opportunity costs that are involved in hosting 2010 in our city. Evacuating the city centre clear of homeless people, by buying/building houses, so when the athletes and spectators come to Vancouver, they will leave with a positive image. Construction on the various sites to host the different winter games is mandatory to ensure the best facilities are there for the event. The Canada Line connecting Vancouver, Richmond, and the Vancouver Airport is well underway that by the end of 2009 it will completed and readily available for the Winter Olympics. These are just a few of the many direct costs involved in this event. Opportunity costs are usually neglected during the course of the consideration. If we were to spend even only half of what China had for the Olympics, it would still be $23.5 billion. Those billions of dollars could be put further in use if they were funding different areas of the nation. More money could be spent on Health Care to reduce the death rates in Canada. Despite the lowering unemployment rates, more funds could be used to opening classes for those unemployed to upgrade their skills/knowledge.
Reflection
There are always two sides to a situation. Some people may look at hosting the Olympics as negative, that’s why numerous times we’ve had people graffiti the Olympics Countdown Clock that is located just outside the Vancouver Art Gallery. But a lot of citizens are excited about 2010 just as much as I am. Having the Winter Olympics in the Lower Mainland could be very exciting and hectic. The US as well as Canada is starting to fall into recession, so with 2010 in Vancouver, we might have that extra something to keep our province and perhaps nation going. While most of the other cities are suffering recession, Vancouver will have a lot of tourists which could lead to more revenue that is coming into our province. So in this situation, even if the opportunity cost and direct costs are high, it wouldn't affect us too much because the extra capital that comes with having 2010 in Vancouver will keep our city and province out of the crisis. With that said, I think the bid for Vancouver hosting the 2010 Winter Olympics was a very intelligent choice.
Summary
Now that the summer Beijing Olympics 2008 is over and done with, everyone is turning their attention to the winter Vancouver Olympics 2010. Anticipation for the winter Olympics is growing larger and larger especially since Beijing spent a massive sum of $45 billion on the Summer Games. Mayor Sam Sullivan believes in the great possibilities that could be brought upon our city because of 2010. "People will speak about Vancouver before 2010 and after 2010, and my goal has been to make sure that we are ready to take that opportunity." Even with the Winter Games nearing, the numbers set for the security budget is still yet to be finalized. Originally they came up with the figure $175 billion, but soon they had second thoughts worrying that it wouldn’t be adequate. Cleaning up the homeless people in the city centre is another factor that has always been near the top of the list. Citizens of Vancouver are concerned that the cost for this event may be too high.
Connection
This article is related to our text in that there are obvious direct and opportunity costs that are involved in hosting 2010 in our city. Evacuating the city centre clear of homeless people, by buying/building houses, so when the athletes and spectators come to Vancouver, they will leave with a positive image. Construction on the various sites to host the different winter games is mandatory to ensure the best facilities are there for the event. The Canada Line connecting Vancouver, Richmond, and the Vancouver Airport is well underway that by the end of 2009 it will completed and readily available for the Winter Olympics. These are just a few of the many direct costs involved in this event. Opportunity costs are usually neglected during the course of the consideration. If we were to spend even only half of what China had for the Olympics, it would still be $23.5 billion. Those billions of dollars could be put further in use if they were funding different areas of the nation. More money could be spent on Health Care to reduce the death rates in Canada. Despite the lowering unemployment rates, more funds could be used to opening classes for those unemployed to upgrade their skills/knowledge.
Reflection
There are always two sides to a situation. Some people may look at hosting the Olympics as negative, that’s why numerous times we’ve had people graffiti the Olympics Countdown Clock that is located just outside the Vancouver Art Gallery. But a lot of citizens are excited about 2010 just as much as I am. Having the Winter Olympics in the Lower Mainland could be very exciting and hectic. The US as well as Canada is starting to fall into recession, so with 2010 in Vancouver, we might have that extra something to keep our province and perhaps nation going. While most of the other cities are suffering recession, Vancouver will have a lot of tourists which could lead to more revenue that is coming into our province. So in this situation, even if the opportunity cost and direct costs are high, it wouldn't affect us too much because the extra capital that comes with having 2010 in Vancouver will keep our city and province out of the crisis. With that said, I think the bid for Vancouver hosting the 2010 Winter Olympics was a very intelligent choice.
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