Unemploymet Rates are not Reliable Idicator of Economic Strength

Source: http://www.cbc.ca/news/business/moneytalks/2011/02/michael-hlinka-dont-fixate-on-unemployment-the-numbers-mean-little.html

Summary:

The article talks about how citizens have their time where there are different expectations that exist that guides you to what you choose. Every year the unemployment should be different and unpredictable. The unemployment rate in January raised to 7.8%, of course in ratio terms it looks quite small but in the actual population number it is quite immense. To a few people it just doesn’t makes sense because around 69 thousand new jobs were created the last month, so how did unemployment rates raise? Micheal explains that there are more people who joined the labour force and started to look for jobs actively. An example of the fixated percentages being unconfident representation is Alberta. Alberta’s economy is the strongest compared to the other provinces yet it has the highest fluctuating unemployment rate. Overall these percentages are not what people should be looking at because it is not a very good indicator of economic strength.

Connections:

This article is connected to many topics that we have learned in our economics 12 class especially unemployment rates. A few classes we discussed the unreliability of unemployment figures of how it is not accurate and how it is only a rough estimation. To understand how the unemployment number works we first have to take in consideration that the age prospected to be in the work force is 15-65 also the amount of surveys conducted. First off the unemployment rates are unreliable because of varied people participating in the work force and second the amount surveyed is usually around 1000 people to represent all of Canada. To be considered unemployed you would have to be looking for a job, that means if a person has lost hope and gave up trying to search for a job they are not counted towards the labour force. There are also a few types of unemployment such as seasonality, frictional, structural and demand deficent which all four varies at different times. The elements mentioned above also relate towards another topic that we have covered which was economic strength. Since the unreliability of unemployment seems to be facts than it concludes how economic strength is not determined by unemployment rates.

Reflection:

I completely agree with the article about how the unemployment rate is a unreliable indicator of the condition of our economy. It takes many regulated requirements to be considered unemployed for example if people have given up on looking for a job or being a student they are not considered unemployed. Determining the economic strength of a country is difficult because you can never truly reflect accurate information. An example is that we know that Alberta is strong because of their oil production sales but their unemployment rates are varied immensely. You would think that a province being well developed would have low unemployment rates but it’s a factor that is unreliable leaving economic strength to be contradictory. How do we determine economic strength? We can determine economic strength by changing the regulations upon measurements of economic factors such as unemployment, expenditures, consumption, sales and etc.

Direct Tax Chapter 4

Summary

A known media company named Nationpost published an article talking about Illinois having an income tax increase. The current situation in Illinois is that they are $8.7 billion dollars in overdue bills and the state believes that increasing taxes will solve their dilemma. Currently the personal tax rate is 3% and increase to 5% shortly overall that equates to $600 for every $1000 in state taxes. Similar situation happened in BC where the HST was introduced but could not compare to Illinois’s taxes. Their government makes it believable that extra tax charges are temporary but in reality it would be permanent because in Canada the government 94 years ago has said that income tax was temporary.

Connections

            The article relates to a term in economics and this term is called direct tax. Direct tax can be defined as a tax imposed on the person who is intended to pay the tax. Everybody in the working fields receives a salary of what they work for but when tax increases are introduced nobody is ever content. Tax increases means more money to dish out and less food on the table. Sure the increase wouldn’t hurt the riches but how about those who rely on their weekly pay cheques to survive? The extra 2% change could eliminate a day’s worth of meals. The taxes go towards the government to pay off bills and other expenses but usually it should come back to the city and that’s all the citizens of Illinois could hope for.

Reflection

            Everybody is exposed to taxes because either you pay for it or your parents do. Taxes is a very important concept to learn because there are very different unique types that you should understand. Earlier on I talked about how increasing taxes could really hurt individuals who rely on their weekly cheques. These people often feel hopeless because of the increase and they would have to cope with it because the government rarely creates a flawless balanced system that helps this level of society. I have a few cousins who are in this situation right now except they are dealing with HST and it certainly makes them have a second thought before buying goods.

Source: http://fullcomment.nationalpost.com/2011/01/13/illinois-hikes-taxes-66-in-financial-highwire-act/

Supply and Demand for SC2

Summary

This article discusses one of the top RTS games of the year. If you haven’t heard of it already then you probably aren’t a gamer. This highly competitive game is named Starcraft 2 which is a sequel towards the first one that launched years ago. Starcraft 2 launched on July 2010 and its first month it has sold over 700k. The sales contributed towards the statistics gain for games and it had raised it to a 103% increase over the last July. Blizzard the company behind this exceptional game had brought Starcraft 2 overseas to over 10 countries and sales continue to grow.

Connections

The discussion over the phenomenal sales over the game Starcraft 2 can be easily tied into supply and demand. In economics there is a general rule about supply, demand and it’s equilibrium point. This equilibrium point is significant because it shows the perfect balance of supply and demand in order for profits to be made. Blizzard as an example has done an exceptional job presenting this equilibrium point because it shows that the high demand has been met with the supply therefore creating a great surplus in revenue going with the figures of 700k in less than a month.

Reflection

I am a consumer towards blizzard because I own a copy of the game myself and dished out $60 out of my pocket just for some entertainment. I agree with what Blizzard has done because a game is not fun if it is played alone and since there is an enormous amount of sales it means that there has to be an enormous population for the game. Blizzard has shown the world how games are supposed to be done and I am impressed the reaction of the population has because the sale figures explain everything. With their smart marketing techniques and their amazing team they definitely rise to the top in sales and it won’t be going down for months.

Source: http://arstechnica.com/gaming/news/2010/08/starcraft-2-sales-blitz-a-success-sales-crush-console-games.ars

Canada's Fresh Water Supply Depleting

Source: http://www.vancouversun.com/news/canada/Canada+fresh+water+supply+draining+away/3519155/story.html

Summary      

The article that I have read is from a local media news company which is The Vancouver Sun. In this recent article published by The Vancouver Sun, its main topic is about Canada’s fresh water draining away from its source. Statistics are used to start off to show the major drop in the fresh water supply which appears as 3.5 cubic kilometers used annually. In other words there is a loss of 1.4 million Olympic sized swimming pools of water used every year. Our fresh water is collected from many natural aspects and in the end it is roughly about the amount of Lake Huron which then is distributed unequally across the provinces. Fresh water is being consumed at a high rate and with the water renewing at a slow pace we are brought into a position where the balance is broken which is especially difficult since fresh water is scarce.

Connection

            The concept spoken of in my summary is very predictable which appears to be scarcity. Our very own natural resource is in danger because our consumption of fresh water comes from many things such as hygiene, growing crops, etc is soaring. In the present people are not usually aware of our natural fresh water resource being scarce because it is used everywhere without any worries at all. The report shows staggering results that shows us that our fresh water could probably only last around for 270 years because of the consistent high demand and limited supply. Another term that could relate is opportunity cost because if Canada decided to hold a program to preserve water and to generate a way to aid the existing water supply it possibly will cost millions but in the end it would be worth it because the fresh water cycle would be balanced.

Reflection

            I was already aware of the fact that water indeed is a scarce natural resource that had to be preserved but when I look around people seem not to worry at all. My predictions of the causes of people not worrying are that there is not enough information stressed in public. If there was a vast amount of information floating around people would defiantly recognize it and make changes. The whole idea of fresh water being depleted is not a new because it was probably mentioned when people first harvested the natural resource but the ideals of preserving fresh water could be hundreds of new procedures. I remember back in the days where I was a child and fresh clean water was actually bought from stores or shared by family members of those who did live in the city because I lived in a small farm that did not achieve city water so I quickly learned the importance of preserving fresh water.