Chapter Six

"Close gender gap to boost global growth," National Post, FP1,
Wed April 4 07

Countries that have reached a state of slow economic growth tend to have low birthrates in conjunction with high rate of female unemployment. The reason for this is simple, female employment equals extra income, extra income equals security and security equals an increase in children. Therefore, the answer to the twin problems of slow economic growth and even slower population growth is also simple; getting more women into the global workforce equals the decrease in ageing populations and pension sustainability.

Using Scandinavia as an example, closing the gap between male and female employment can boost a country's GDP as high as 20%. The US, who sets an internationally accepted example of gender equality, female employment is still 12% lower than male employment, whereas in Sweden the gap between the two is less than 5%. The reasons for this can be found in Japan and Italy where culture values the traditional role of the woman staying at home to look after children and this has only turned into a standard for successful child-rearing in today’s status-conscious and competitive society. However, in today’s modern society, it is often just one child.

With increased female employment the global GDP will be pushed towards equilibrium as, both the amounts saved and the amounts invested increase. However, as it is impossible for an economy to reach equilibrium, the overall global economy will be better off as more money is flowing around because of the “extra” income. As investment increase the amount of available products on the market will also increase and will further close the global recessionary gap. Overall, getting more women to work in the workforce affect all levels of GDP in almost any country in the world as it will help increase both international GDP and birthrates.

In my personal opinion, while getting more women to work may have a positive impact on global economy but in turn the government has to be able to provide adequate child care services that parents will be willing to send their children to. Not many children get sent to child care because parents now feel that it is necessary to expose their children to as much educational endeavors as they can because of today’s extremely status-conscious community e.g. various lessons and tutoring sessions. Therefore, it will be up to businesses and government to create child care programs that will be inexpensive as well make it so that parents are reassured that their children are engaging in various educational activates, if they wish for more women to enter the workforce.

Chapter Five

"Doomsday predictions from scientists," National Post, A1, Wed April 04 07

Due to the increase in greenhouse gases and a variety of other factors the global landscape is being rearrange by a climate change that is estimated will ultimately wipe out 30% of all life forms on Earth. Global warming will not only cause twice as many forest fires but the melting permafrost up in the Artic will also cause may people in the world's poorest countries to loose their homes due to rising sea levels. However, because of the melting glaciers and permafrost more shipping will be able to reach the Artic, fewer homeless people will be freezing in the wintertime and farms will be able to expand northward.

Even though the articles is not directly related to GDP or any form of unemployment, the environment on its own does have a strong impact on the economy of a country. If the economy is worsening now then in another fifty years or so businesses will fail because their plants will be shut down due to flood or an outbreak in disease, which is also an effect of global warming. Also, fishieries and lumber mills will have trouble doing business when good lumber starts to become a rarity and fish become extinct. As a result, other industries will be worse off too because economics is much like an ecosystem, one thing effects everything else. For example, provinces such as Newfoundland whose economy and GDP almost entirely depends on their fishing industry will suffer the most from a decreasing number of fishes in the ocean.

Even though environment may not be seen as an economic indicator it may suggest how well the economy may be doing in the future. This is another reason when everyone should work together in an effort to conserve or environment. It is not enough that Prime Ministers and Presidents meet to discuss the topic or what they could do because for all these talks to be of any use prevention measures must be put in place. Therefore, I think while GDP and the Unemployment Rate might be a good economic measure for the economics of today, environment is also a factor economists must consider when they are trying to predict the economies of the future.

Chapter Four

"Taxpayers to see more money," The Vancouver Sun, A5, Budget 2007, Wed Feb 21, 07

BC's tax rate will be the lowest in Canada when the tax cut amounted Tuesday comes into effect. The government has promised that over the next two years at least 10% will be taken off the income taxes for people who make up to $100 000. This gives the tax payers back a total of $1.5 billion. The government supports this tax cut by saying they are helping families fund homes, by giving homeowners tax breaks. As well as help the economy by enticing companies to operate in BC. In addition to this the government promises an increase in shelter beds and support housing.

This is supportive of Wagner's theory in that the government controls the amount of taxes paid. This is so because British Columbians will expect the same level of service as before because they think that their economy can now fund more of it because the government has decided to cut taxes. After all, why will they cut taxes if they don't have enough money to spend? It's not as if they are grubbing for voters since election is still a time away. In Canada, we expect or hope that the government will make sound decisions regarding how and how much taxes need to be spent. In addition, Peacock-Wiseman's theory, in which taxes are collected according to average person's view of what's enough, will have to be put into action on a large scale before the Liberals will be able to raise the taxes again after the tax cut. However, when one looks at the actions of Victoria it goes against Wagner's theory in that there is a need (the homeless shelters) for the tax dollars and yet the government is cutting taxes.

Victoria's promises tax cut will put BC's tax rates even lower then that of Alberta. However, the only difference between the two provinces is that Alberta can afford it because of their lucrative oil industry. After all without the tax cuts the increase of shelter beds and support housing could be even more substantial. Also, it's true that housing is becoming increasing expensive in Vancouver and other parts of BC but the tax cut really isn't necessary when people are still able to purchase these houses. Also, a more efficient way to deal with the dramatic increase in prices will be to lower interest rates on mortgages or to lower property tax, not the income tax.

Even though a 10% tax cut over the span of two year sounds really nice the general public will not even notice the $150 or so taken off their taxes over the course 2007. It is more important, I think, for British Columbians to start thinking outside the box and see where the "extra" $1.5 billion could go towards. Such as helping those with truly low incomes or decreasing the size of the provincial debt.

Chapter Three

"New rules will make industrial cranes safer," The Vancouver Sun, D1 Business BC, Fri Jan 12 07

Begin a crane worker is supposedly one of the most dangerous jobs available in the industrial sector. This is because improper or uneducated use of a crane can often lead to the crane coming into contact with high voltage wires, which will cause hazardous electricity jolts. Also, a certain degree of knowledge must be obtained before one can operated a crane safely, such as the the maximum capacity of the crane as well as proper rigging. That's why labor Minister Olga Ilich will make an announcement today at Prince George regarding how crane operators will now be required to have a certification that will cost about $300 each (which will be paid for by the industry) by Dec 31, 07. This will not only cause a new career path in BC but will also boost the wages of crane operators to somewhere between $40-$60 an hour.

It has also been mentioned in the article that because of goverment enacting this new certification for crane operators will cause many positive third party effects aside from the increased wage. For examples, injuries and accidents resulting from cranes should be drastically reduced because operators are now properly trained. This not only applies to other employees required to work around cranes (including the crane operator) but to the general public who happens to have the disadvantage of living close to a construction site, who are also at risk if an improperly loaded cranes tips over or if debris falls from the crane. Also, this new qualification will most likely increase the number of crane operator avaliable (since there is a shortage) as well as ensures employers that the people they employ have been properly trained and are capable of doing their job more efficiently, safely.

As we can see government involvement in the labour market is necessary not only to ensure fair working conditions, proper pay and enviromental concerns. It also, ensures the safely of the general population. Making crane operation get certified will also cause employer to hire certified crane operations, which they will have to pay more in wages for. However, this will cause the overall safety around and in construction sites to increase. Therefore, I think that goverment should be involved in the labour market so employers, who want the largest profit margin, don't undertrain their employees. This is because undertrained employees working around dangerous machines causes many otherwise preventable accidents which may include death.

I cannot see any negative third party effects resulting from this new certification if the operation of a crane is really that dangerous. Considering that cranes are used in the Lower Mainland by almost every industry I think that it is vitally important that all operators should be certified. In addition if anyones present crane operators loose their jobs because of this new certification then they shouldn't be using a crane in the first place.

Chapter Two

"Kids 'n' Crime report tell how to prevent it," The Province, A6 News, Mon Oct 20 06

In a report recently published by the Vancouver Board of Trade titled Kids 'n' Crime, the bulk of the teens involved in crime were found to have 6 factors in common: poor nutrition, learning disablilites, parents with poor parenting skills, drug use, below average reading skills, and are easily infuenced by peer pressure. Also listed are factors that are believed to cause street youth: poor family communication, "friends" who are street youth or involved in the sex trade, and drug use. The majority of these factors are preventable and are relatively inexpensive compared to intervention programs. However, the general public tends to negatively view street youth and are more focused on intervention rather then prevention. Therefore, according to Kids 'n' Crime money is going into the wrong programs. Studies estimate that every $1 spent on the prevention of criminal youth will save $17 for every person in the future through intervention programs.

This goes against the demand and supply theory that price drives the demand and supply curves. It can be assumed, now that the public knows prevention programs are less expensive in the long run, that they will put more money into these programs. That is not the case because of the negative view the public has on teens, many private donors view street youth as "gangsters" and many of them have an irrational fear of working with youth. As a result there is a high demand for prevention programs from crisis youth and their parents while the supply of funds is relatively low.

Time and time again everyone stresses the importance of education, but does education really work? After all, every year ICBC spends money on preventing drunk driving by youth though presentations but the number one killer of teens is still the car accident. The theory behind prevention programs is really good, but how many teens will it actually reach? Will the street youth of Vancouver really listen to what these people say in these presentations? If they really do work then how come the number one killer of youth is still car accidents?

Chapter One

"Universities try to shut out Maclean's," The Province, A24 News, Tuesday Oct 31 06

The 22 universities of Canada are refusing to cooperate with Maclean's magazine's quest for information to publish their 2007 edition of university rankings. The universities are unhappy with the rankings and feels that they "magnifies small differences." Canada's post-secondary institution have also complained that processing this information has become costly (the University of Toronto states the sum of $45 000). In response Maclean has issued "access-to-information" requests that the universities have to oblige by provincial law to complete, however, they are now able to charge a service fee for this information. Half the universities replied by procrastination and by posting student information on their websites. The other half (presumably the top ranked) quietly gave up the information. Since Maclean was unable to win the fight by their issue publication date they were forced to use data that "fluctuates little from year to year."

It is apparent that Maclean is suddenly finding information a scare resource for their magazine. It is also apparent that, with the new service fee, Maclean will find that information has suddenly become a very expensive commodity (remember U of T's $45 000). In addition to that, with the universities being so uncooperative, they will make no effort to lower the service charge for the magazine. Therefore the economic principal that states that when a desired resource becomes scarce (which according to economics all resources are) then the price of the resource goes up until the declining demand (because of the higher price) equals the limited supply.

It seems to me that in the end Maclean will be able to get the information they need. Not only can Maclean's magazine appeal to provincial information commissioners for the release of information because of freedom-of-informaion laws but they have more to lose then the universities do. Can you imagine what will happen to Maclean's magazine's profit margin if they are no longer about to gain the information for their "most well-read and profitable issue?"