http://www.vancouversun.com/business/Block+credit+card+companies+from+debit+business+CFIB/1453093/story.html
Block credit-card companies from debit business: CFIB
Summary
This articles talks about how independent businesses want the government to block banks from sending out credit cards such as Visa and Master Cards with new fees and features. With all the new fees and features for these premium credit cards, businesses will have to pay for them. Catherine Swift, president of the Canadian Federation of Independent believes banks are culprits because these higher fees hurt the individual businesses more than anyone else. Even though Swift asked to block these credit cards in Ottawa, both Visa and Master Card plans to enter the market in the fall to compete again Interac. As the fees increase for the credit cards, businesses will increase and good will increase as well to cover the cost.
Connection:
In this chapter we talk about the demand for money. People find it much simpler and easier to carry a plastic card around rather than money. It is also easier to use a plastic card compare to cash because you won’t feel like you’re actually spending that much money. Where if you’re using cash you will always know and feel how much money you’re actually spending. With all of these new fees and features it will increase people to use their credit card more. Which means individual businesses will have to pay for the services it requires. But with the economic conditions right now it will be hard for businesses to increase prices.
Personal Reflections
I personally think banks should continue having these new fees and features with Visa and Master Card. This will increase people to spend more money on goods; this is a way to get out of the current economic situation. Although goods may be raised, people wouldn’t notice that much of a price difference because their using a card rather than real cash. In the end the individual businesses are able to cover the expense that is if consumers purchase goods.
Wednesday, April 1, 2009
Monday, March 9, 2009
http://www.edmontonjournal.com/business/fp/Pressure+mounts+feds+spend/1347630/story.html
Pressure mounts on feds to spend
Summary
This article talks about how Canada has finally entered a recession after the fourth quarter. The Bank of Canada has been told to lower the interest rates, so that more money will be going out into the economy. This article also mentions that in the fourth quarter GDP dropped in capital investments, personal expenditures, home sales & prices, and exports till the sixth quarter. It also mentions how if Canada contracted, then all the other countries contracted as well. In US and Europe they contracted twice as quickly and in Japan four times as quickly. It also mentions the percentages of interest rates The Bank of Canada is cutting down to a really low amount.
Connections
In this chapter we learned about GDP and aggregate demand. In the article it talks about how the government urges The Bank of Canada to reduce tax rates so that more money will be put out in the economy hoping to get out of the recession Canada is in at the moment. If interest rate goes down people would be spending more, which would then increase demand of goods. If demands of goods are high the export and import will increase. This will cause the GDP to increase in the next quarter. If GDP slowly increases, eventually Canada will get out of this recession.
Personal Reflection
I think this is a good idea that more money is being pumped into the economy. With the help of low interest rates, it will interest people to start spending more. This will eventually lead to people investing again in houses, new goods, cars or any other expensive goods. Once people are starting to invest in them it means there is more money being put into the economy. If low interests gradually continue to lower, people will think that it is alright to start spending money on not only needs, but wants as well. The idea of having more money being pumped into the economy is definitely a good idea; I don’t think there are any flaws to it.
Pressure mounts on feds to spend
Summary
This article talks about how Canada has finally entered a recession after the fourth quarter. The Bank of Canada has been told to lower the interest rates, so that more money will be going out into the economy. This article also mentions that in the fourth quarter GDP dropped in capital investments, personal expenditures, home sales & prices, and exports till the sixth quarter. It also mentions how if Canada contracted, then all the other countries contracted as well. In US and Europe they contracted twice as quickly and in Japan four times as quickly. It also mentions the percentages of interest rates The Bank of Canada is cutting down to a really low amount.
Connections
In this chapter we learned about GDP and aggregate demand. In the article it talks about how the government urges The Bank of Canada to reduce tax rates so that more money will be put out in the economy hoping to get out of the recession Canada is in at the moment. If interest rate goes down people would be spending more, which would then increase demand of goods. If demands of goods are high the export and import will increase. This will cause the GDP to increase in the next quarter. If GDP slowly increases, eventually Canada will get out of this recession.
Personal Reflection
I think this is a good idea that more money is being pumped into the economy. With the help of low interest rates, it will interest people to start spending more. This will eventually lead to people investing again in houses, new goods, cars or any other expensive goods. Once people are starting to invest in them it means there is more money being put into the economy. If low interests gradually continue to lower, people will think that it is alright to start spending money on not only needs, but wants as well. The idea of having more money being pumped into the economy is definitely a good idea; I don’t think there are any flaws to it.
Thursday, February 26, 2009
Nortel cuts another 3,200 jobs
http://www2.canada.com/aboutus/help/nortel+cuts+another+jobs/1328160/story.html?id=1328160
Summary
Nortel Network Corp. is one of the biggest ailing telecom equipment makers in the world. This companied employed over 90,000 people in 2000 when technology was booming. But with the recession happening, they have been cutting employees since January. Just last Wednesday they cut another 3,200 workers world wide. But that is not the end of laying off employees according to Zafirovski the Nortel Chief Executive. Duncan Steward who is an analyst at DSAM Consulting analyzed Nortel and said in order for it to keep running it needs to have at least 15,000 to 18,000 people working. Not only are they making cuts, they are also reducing bonuses and cutting equity based compensation plans. Last month Nortel filed bankruptcy protection for Canada and United States.
Connections
In this article it talks about people being cut and being unemployed. Nortel is making big cuts is because the recession rate is the lowest since the Great Depression. The reason why Nortel made abundant of cuts is because the demand for their product has dropped a significance amount. With less demand for their product, it is no surprise they need to cut down on employees in order to make profit. But with cutting down on employees it increases the unemployment rate causing consumers to consume even less. This leads to the CPI rate to be low because people no longer have the money to purchase goods.
Personal Reflections
Nortel is making a decision that many other companies are making in order to save their company’s. I don’t think that it is necessarily a good idea for Nortel or any other companies to cut back on so many employees even if we are in a recession. If less people are being cut then more people will be employed, and less will be unemployed. Which would result with people having money extra money to purchase goods, demands for goods will increase, and employees will be needed again. Also if there are a huge number of unemployed people it can be bad cause there can be structural unemployment.
Summary
Nortel Network Corp. is one of the biggest ailing telecom equipment makers in the world. This companied employed over 90,000 people in 2000 when technology was booming. But with the recession happening, they have been cutting employees since January. Just last Wednesday they cut another 3,200 workers world wide. But that is not the end of laying off employees according to Zafirovski the Nortel Chief Executive. Duncan Steward who is an analyst at DSAM Consulting analyzed Nortel and said in order for it to keep running it needs to have at least 15,000 to 18,000 people working. Not only are they making cuts, they are also reducing bonuses and cutting equity based compensation plans. Last month Nortel filed bankruptcy protection for Canada and United States.
Connections
In this article it talks about people being cut and being unemployed. Nortel is making big cuts is because the recession rate is the lowest since the Great Depression. The reason why Nortel made abundant of cuts is because the demand for their product has dropped a significance amount. With less demand for their product, it is no surprise they need to cut down on employees in order to make profit. But with cutting down on employees it increases the unemployment rate causing consumers to consume even less. This leads to the CPI rate to be low because people no longer have the money to purchase goods.
Personal Reflections
Nortel is making a decision that many other companies are making in order to save their company’s. I don’t think that it is necessarily a good idea for Nortel or any other companies to cut back on so many employees even if we are in a recession. If less people are being cut then more people will be employed, and less will be unemployed. Which would result with people having money extra money to purchase goods, demands for goods will increase, and employees will be needed again. Also if there are a huge number of unemployed people it can be bad cause there can be structural unemployment.
Sunday, February 22, 2009
‘Credit card dieting’ latest trend in consumer frugality
http://www.vancouversun.com/business/Credit+card+dieting+latest+trend+consumer+frugality/1317960/story.html
Summary
Credit card dieting is the next big thing that is happening. With more and more people going on the new credit card dieting it can only mean people will be consuming less. With abundant of people consuming less, retail stores know that their sales will slowly drop. This article talks about how the economy is going into a recession, also talks about the cut backs on employee restaurants have to make in order to cover cost and make bare minimal profit. There are also ways people are learning how to save money during the recession. Instead of using their credit card or debit card, people are paying everything by cash. People are also using the quote “Only buy things you need, not want” as their motto to keep save up on their money.
Connections
In this chapter we learn about macroeconomics which is the area of economics that is concerned with the overall economy rather than individuals. In the article it mentions that abundant of employees got cut back on their jobs. With so many unemployed people seeking for jobs, the participation rates slowly decreases. As the participation rate decreases there will be even less consumers purchasing goods, which would slowly cause a recession which is a drop in economic activity. Since the participation rate is low, and a recession is going to happen it will only lead to demand deficient unemployment which results from lack of economic spending.
Personal Reflection
In my opinion the credit card diet is not a bad thing, it can help people save money up. The only reason people are going on this credit card diet is because prices for goods have risen, which caused consumers to consume less amount of goods. Not only has the prices has risen, many people got cut back on their jobs. I think the government should start up more jobs so that the participation rates increases again, therefore it will cause more people to purchase goods. If more people purchase goods, the prices of goods will drop and we will be out of the recession.
Summary
Credit card dieting is the next big thing that is happening. With more and more people going on the new credit card dieting it can only mean people will be consuming less. With abundant of people consuming less, retail stores know that their sales will slowly drop. This article talks about how the economy is going into a recession, also talks about the cut backs on employee restaurants have to make in order to cover cost and make bare minimal profit. There are also ways people are learning how to save money during the recession. Instead of using their credit card or debit card, people are paying everything by cash. People are also using the quote “Only buy things you need, not want” as their motto to keep save up on their money.
Connections
In this chapter we learn about macroeconomics which is the area of economics that is concerned with the overall economy rather than individuals. In the article it mentions that abundant of employees got cut back on their jobs. With so many unemployed people seeking for jobs, the participation rates slowly decreases. As the participation rate decreases there will be even less consumers purchasing goods, which would slowly cause a recession which is a drop in economic activity. Since the participation rate is low, and a recession is going to happen it will only lead to demand deficient unemployment which results from lack of economic spending.
Personal Reflection
In my opinion the credit card diet is not a bad thing, it can help people save money up. The only reason people are going on this credit card diet is because prices for goods have risen, which caused consumers to consume less amount of goods. Not only has the prices has risen, many people got cut back on their jobs. I think the government should start up more jobs so that the participation rates increases again, therefore it will cause more people to purchase goods. If more people purchase goods, the prices of goods will drop and we will be out of the recession.
Wednesday, January 21, 2009
http://www.financialpost.com/money/family-finance/story.html?id=1137321
The New Debt- free you
Summary:
Credit cards gives off the feeling of being wealthy, and who doesn’t like that feeling? Jamie Snider who was in school for 6 years and for 1 of the years he completely relied on his credit card rather than student loan to pay for school. After he was done with school, he realized his debt has double the amount of what it uses to be. He knew he was in deep trouble so he went to non-profit agency and got help. Now he has to work both day and night with two different jobs. Moral of the story is to don’t depend too much on your credit card; you still have to pay off the debt later on. Also abundant of people do not realize how much they end up spending on their credit card and how much interest they have to end up paying afterwards. According to the Credit Counseling Service of Toronto since credit card first came out the debt has been slowly increasing. So think twice about your using credit card, you don’t want to be stuck in deep water!
Connections:
In this chapter we’re learning about tax and how taxes are being used. In this particular story, it would be the best for him to have vertical equity, so he will be able to pay off his debt and save money up much quicker. There are two approaches to vertical equity benefits-received approach and ability to pay approach. In this case it is better for Snider to use ability to pay approach because while he is out working hard, he won’t be spending as much as money therefore he won’t have to pay as much. Snider should also be glad that double taxation isn’t permitted; if it was permitted he would probably be in debt for the rest of his life unless he won the lottery & even if he won the lottery he wouldn’t be super wealthy.
Personal Reflection
Although the approaches I mentioned above are not being used, but if it was being used, then Snider would be paying off his debt so much quicker as well as other. Eventually this would lead to spending more money because they are not able to pay off their debt much quicker. I am glad that double taxation is not permitted, if it was permitted it would take us years to save up enough money to buy something we really like; also it would be like robbing us. With all the debt rising, perhaps the government should change the tax system and try a different approach that would help people pay off their taxes more efficiently and quicker.
The New Debt- free you
Summary:
Credit cards gives off the feeling of being wealthy, and who doesn’t like that feeling? Jamie Snider who was in school for 6 years and for 1 of the years he completely relied on his credit card rather than student loan to pay for school. After he was done with school, he realized his debt has double the amount of what it uses to be. He knew he was in deep trouble so he went to non-profit agency and got help. Now he has to work both day and night with two different jobs. Moral of the story is to don’t depend too much on your credit card; you still have to pay off the debt later on. Also abundant of people do not realize how much they end up spending on their credit card and how much interest they have to end up paying afterwards. According to the Credit Counseling Service of Toronto since credit card first came out the debt has been slowly increasing. So think twice about your using credit card, you don’t want to be stuck in deep water!
Connections:
In this chapter we’re learning about tax and how taxes are being used. In this particular story, it would be the best for him to have vertical equity, so he will be able to pay off his debt and save money up much quicker. There are two approaches to vertical equity benefits-received approach and ability to pay approach. In this case it is better for Snider to use ability to pay approach because while he is out working hard, he won’t be spending as much as money therefore he won’t have to pay as much. Snider should also be glad that double taxation isn’t permitted; if it was permitted he would probably be in debt for the rest of his life unless he won the lottery & even if he won the lottery he wouldn’t be super wealthy.
Personal Reflection
Although the approaches I mentioned above are not being used, but if it was being used, then Snider would be paying off his debt so much quicker as well as other. Eventually this would lead to spending more money because they are not able to pay off their debt much quicker. I am glad that double taxation is not permitted, if it was permitted it would take us years to save up enough money to buy something we really like; also it would be like robbing us. With all the debt rising, perhaps the government should change the tax system and try a different approach that would help people pay off their taxes more efficiently and quicker.
Sunday, November 23, 2008
Pass The Plate
http://www.economist.com/business/displaystory.cfm?story_id=12638642
Summary
Will GM, Chrysler and Fords declare bankruptcy? This is only going to happen if banks don’t give them a lending hand and loan them some money. But luckily, they’re in luck, the directors of European Investment Bank and the Europeans Unions are considering of giving them a soft loan. If they don’t receive the loan, GM will not be able to pay for the bills and will have to declare bankruptcy. The Detroit Three are helping them out. They are planning and feel really confident that they are able to convince the Senate to pass a bill, to receive extra finance so that it will help them out a bit. So now they have 2 options, one is to allow the Europeans to help them out, or hope that the bill will pass next year.
Connections
If GM, Chrysler and Fords don’t receive financial help soon, it will mean that they will have to declare bankruptcy. But if the government comes in and helps them financially, they will be able to continue and produce goods. If any of these car makers does decide to declare bankruptcy it will cause fluctuations in economic activities. The employment rate would go down, and people wouldn’t be able to purchase goods anymore which would cause the economics to drop even more! Also all these car makers are known to be invisible hands, if they don’t continue on, there will be no cars sold anymore because these big companies are planning to declare bankruptcy. So perhaps it is better if the governments comes in and give them a helping hand and make it so it is a natural monopoly or help them out financially.
Personal Reflection
I personally believe that GM, Chrysler and Fords should not declare bankruptcy and even if they do, then who will be supplying us with the cars? Where will be getting our cars from then? Would we get it from some other car makers that are not from our country? Wouldn’t it be better if we help our own country, rather than some other country? I think we should take the risk and hope the Senate will pass the bill for receiving extra finance for the car makers. But in the mean time if the European Investment Banks and Europeans Union do decide to help us, we should accept their loan and pay them back ASAP when the bill is passed. That way we’re not completely helping another country all the way and we’re making US better as well!
Summary
Will GM, Chrysler and Fords declare bankruptcy? This is only going to happen if banks don’t give them a lending hand and loan them some money. But luckily, they’re in luck, the directors of European Investment Bank and the Europeans Unions are considering of giving them a soft loan. If they don’t receive the loan, GM will not be able to pay for the bills and will have to declare bankruptcy. The Detroit Three are helping them out. They are planning and feel really confident that they are able to convince the Senate to pass a bill, to receive extra finance so that it will help them out a bit. So now they have 2 options, one is to allow the Europeans to help them out, or hope that the bill will pass next year.
Connections
If GM, Chrysler and Fords don’t receive financial help soon, it will mean that they will have to declare bankruptcy. But if the government comes in and helps them financially, they will be able to continue and produce goods. If any of these car makers does decide to declare bankruptcy it will cause fluctuations in economic activities. The employment rate would go down, and people wouldn’t be able to purchase goods anymore which would cause the economics to drop even more! Also all these car makers are known to be invisible hands, if they don’t continue on, there will be no cars sold anymore because these big companies are planning to declare bankruptcy. So perhaps it is better if the governments comes in and give them a helping hand and make it so it is a natural monopoly or help them out financially.
Personal Reflection
I personally believe that GM, Chrysler and Fords should not declare bankruptcy and even if they do, then who will be supplying us with the cars? Where will be getting our cars from then? Would we get it from some other car makers that are not from our country? Wouldn’t it be better if we help our own country, rather than some other country? I think we should take the risk and hope the Senate will pass the bill for receiving extra finance for the car makers. But in the mean time if the European Investment Banks and Europeans Union do decide to help us, we should accept their loan and pay them back ASAP when the bill is passed. That way we’re not completely helping another country all the way and we’re making US better as well!
Tuesday, October 28, 2008
http://www.expressindia.com/latest-news/water-crisis-looms-bmc-to-cut-supply-to-new-buildings-by-half/378391/
Water Crisis Looms, BMC to cut supply to new buildings by half
Summary
This article talks about how in Mumbai, water supply is running low because new buildings are using more water than needed. With all the Jacuzzi and swimming pools the budget for water is running even lower! So they made a new rule for each person in Mumbai, each person is only allowed to use a certain amount of water each day. If you use more than that amount you will be penalized. The BMC also got granted to for new connections on humanitarians ground. The article also talks about the city’s daily consumption of water and the amount of water that should have been being used.
Relation
Water being cut down in this article shows what we call supply and demand! The less water there is the more demand for it there is. Water is an essential item for life, so of course the demand for it, is high. It doesn’t matter is the price high for it, because people will still buy it. This article shows elastic demand because there is a change in demand which causes the quantity of demand to increase. The more they restrict the water usage the more water people would want to use.
Opinion
In my opinion I believe what they’re doing right now is not a bad idea. It is actually quite a good idea, a great way of trying to preserve water. Limiting the amount of water people are able to use and if they go overboard they get penalized is a great way of teaching people a lesson. Being penalized and learning a lesson, the chances of people doing that again are low. People are learning slowly on how they can preserve the natural things we need in life.
Water Crisis Looms, BMC to cut supply to new buildings by half
Summary
This article talks about how in Mumbai, water supply is running low because new buildings are using more water than needed. With all the Jacuzzi and swimming pools the budget for water is running even lower! So they made a new rule for each person in Mumbai, each person is only allowed to use a certain amount of water each day. If you use more than that amount you will be penalized. The BMC also got granted to for new connections on humanitarians ground. The article also talks about the city’s daily consumption of water and the amount of water that should have been being used.
Relation
Water being cut down in this article shows what we call supply and demand! The less water there is the more demand for it there is. Water is an essential item for life, so of course the demand for it, is high. It doesn’t matter is the price high for it, because people will still buy it. This article shows elastic demand because there is a change in demand which causes the quantity of demand to increase. The more they restrict the water usage the more water people would want to use.
Opinion
In my opinion I believe what they’re doing right now is not a bad idea. It is actually quite a good idea, a great way of trying to preserve water. Limiting the amount of water people are able to use and if they go overboard they get penalized is a great way of teaching people a lesson. Being penalized and learning a lesson, the chances of people doing that again are low. People are learning slowly on how they can preserve the natural things we need in life.
Subscribe to:
Posts (Atom)
