Chapter 6 -Media Article

"Canada's economy created 9,300 jobs in May, lower than expected"
The National Post -Saturday, June 09, 2007

Canada's unemployment rate stayed at a very low 6.1% in May compared to the past 30 odd years. There was a full-time employment increase of 32,700 whereas part-time jobs decreased by 23,400. The main areas of employment are construction, information, recreation, culture, accommodation, and food services. These areas have been increasing since the start of 2007. On the other hand, the trade sector and natural resources are not doing too well. For BC, our unemployment rate decreased from 4.4 (April) to 4.2 (May).

For May, analysts predicted 5,000 to 23,000 jobs created. So the actual 9,300 was very disappointing. There was also a forecast for an added 19,000 jobs in May after the disappointing lost of 5,200 jobs in April. According to Statistics Canada, the manufacturing sector lost 12,000 jobs in May even after the 18,600 jobs lost in April. Following after is the 6,400 jobs lost last month in the service industry. That was a great downfall since it's supposed to be one of Canada's strongest industries.

It is to be believed that the Canadian dollar would be stalled due to the weak increase of employment. Also, Canada's main stock index is dropping. It's likely that the Bank of Canada's borrowing costs will increase also.

Relationship to Ch.6-Full Employment GDP

As we know from my previous blog regarding Canada's increasing GDP, we expect more jobs to open up. From the article, there was a "lower-than-expected 9,300 jobs [created] last month" according to Statistics Canada. There was a decrease of part-time jobs, but if we think about it, most post secondary students are off from school around mid-May and early-June. Those students can either switch jobs or increase their hours at work. I believe this is one reason why full-time employment increased while part-time jobs decreased. If we subtract the part-time jobs from full-time, there is a difference of 9,300 jobs. If we also take in account that some people have more than one part-time job and switched to full-time employment, we see that there are more than 9,300 new people employed.

We know that full-employment is very idealistic, but British Columbia is improving with its unemployment rate (from 4.4 to 4.2 in May).

I think that our unemployment will slowly decrease as more jobs open up for the summer. More students will be out of school and searching for work. Also, more money would be spent by the students. Anticipating this, employers will hire more people to keep their business moving and to keep up with the demand.

[Commented on Amy Yeung's blog]

Chapter 5 -Media Article

"Population vs. economic growth"
The National Post -Tuesday, March 13, 2007

Newfoundland and Labrador and Saskatchewan are the two provinces in Canada to experience "massive gains" for their real gross domestic product per capita. This is the result of quickly raising prices of their resources. Between 2001 and 2006, Newfoundland and Labrador had a growth of 27.9% for their real GDP. On the other hand, Saskatchewan had 14.3%. Saskatchewan's growth may seem low, but compared to Canada's overall real GDP per capital growth of 8.7%, Saskatchewan did really well during those five years.

For Newfoundland and Labrador, its natural resources of oil and gas helped increase this province's GDP.

Despite doing well, Newfoundland and Labrador and Saskatchewan is facing its own problems. They are losing their "best and brightest" current and potential employees to other parts of Canada. Provinces such as Ontario and Quebec may be more attractive to Canadian citizens, but its GDP growth is at a measly 5.3% and 6.2% respectively due to its lack of natural resources (compared to Alberta and Newfoundland and Labrador). Another reason is due to the international immigration lag. That's to say, Ontario and Quebec's population growth is largely due to immigration. Immigrants to Canada require time to adapt to the country whether it's language barriers, troubles finding work, or taking courses that are accepted in Canada (some licenses and certificates from other countries may not be recognized in Canada).

Relationship to Ch.5-Gross Domestic Product

Gross Domestic Product, commonly known as GDP, refers to the the annual value of goods and services produced in a country. The reason that Newfoundland and Labrador and Saskatchewan is doing well according to its GDP is due to their natural resources of oil and natural gas. Although they don't exceed Alberta's production levels. From what we are learning now, we understand that despite Newfoundland and Labrador and Saskatchewan's high GDP levels, we cannot say that their standard of living is good. Gross domestic product of an area doesn't conclude as a reliable indication of the standard of living in Canada. Standard of living can only improve if GDP increases at a faster rate compared to the population. Another "if" is that GDP must be compared to the increase of prices.

From this, I believe that Newfoundland and Labrador and Saskatchewan have good standard of living in Canada because their population is increasing at a lower rate than their booming real gross domestic product per capita.

Chapter 4 -Media Article

"Alberta to continue its impressive growth: report"
The National Post -Friday, February 23, 2007

Canada's economic growth is continuing to be guided by its Western provinces (Conference Board of Canada's Provincial Outlook). In Alberta, the demand for oil will be more than 4% gross domestic product (GDP) for the next couple of years. This is less than last year's 6.3% GDP. In British Columbia, on the other hand, is expected to have 3% GDP in the next two years. This is mainly due to the major construction products and commodities. Oil has kept housing levels in BC and Alberta increasing at rapid rates. "Even though Calgary is coming off incredibly high levels, Edmonton is still very strong, it’s even surpassed the housing activity for Calgary," said Arlene Kish, an analyst with BMO Capital Markets. She also noted that there's going to be economic boom in British Columbia from the Vancouver Olympics. Sadly, as Western Canada continues to boom, Ontario’s economy has still not caught up to its neighbours. It only has a GDP growth of 1.9%. Its obstacle is due to its limping auto industry and retail sales. It’s predicted that in Ontario, unemployment will increase in the manufacturing sector of its economy. These percentages are predicted from last year’s results.

Relationship to Ch.4-Gross Domestic Product

Gross Domestic Product, commonly known as GDP, is the annual value of goods and services produced in a country. From this article, we see that a country’s GDP can increase or decrease due to current events. In British Columbia, we see that the Vancouver Olympics of 2010 will increase the province’s GDP. This is because there will be an increase of human traffic from visiting countries. There will be many more spectators that will cheer their country’s team on. On the darker side, we know that Canada is creeping away from the manufacturing civilization. Due to this, Ontario’s manufacturing sector is slowly decreasing its productivity. This increases its unemployment rate which will result in damaging the economy. We know this because it would mean less money circulating. Also, a low GDP rate may mean that Ontario may end up borrowing money from other places to keep its economy stable. This would result in a bigger debt by the province, but it’s better than taxing their citizens. That’s because citizens vote for who they like and who they can benefit from. If the current government increases taxes, citizens of Ontario would vote in another government that will promise to lower the tax rate. All in all, people aren’t concern with government borrowing, but they are with increased taxes.

Chapter 3 -Media Article

“Alzheimer’s breakthrough”
The Province –Monday, January 15, 2007

An international team has discovered a key gene that causes Alzheimer’s disease. As we all know for years, genes are related to Alzheimer’s disease. This is because it tends to run in families. In 1993, it was discovered that the APOE-e4 gene mutation causes 20 to 30% of Alzheimer’s disease. The discovery reported on Sunday in the Nature Genetics say that it may lead to tests to identify people in danger of Alzheimer’s disease. There may even be drug therapies to protect them.

As of now, there is an approximate of 435,000 Canadians with Alzheimer’s disease. The number is expected to double in the next quarter century if there isn’t a cure. So far, DNA from some hundred Canadians has been analyzed for research. There is a long-term collaboration between St. George-Hyslop and his colleagues at Boston University and Columbia University. They share their resources and gene samples for study.

The researchers hope to be able to tailor therapies to fit an individual’s gene profile to decrease their risk of Alzheimer’s disease. In the end, they hope that people will not be afraid of being tested of this disease because they know there will be therapies to reduce the risk. There is still a lot more work to be done.

Relationship to Ch3-Third Party Effects

As we all know, Alzheimer’s disease causes the carrier to forget things easily. This affects others through human interaction. We interact with society everyday.

Let’s set up a situation where a cure for Alzheimer’s disease will benefit others:

Kyle is riding a bicycle down a quiet city street to school. It is 7am and there is no one around except for the senior who likes to take morning strolls with his dog. A white Hummer drives by with a very recognizable license plate: “ME N YOU” (me and you). The driver doesn’t see Kyle and hits him. The senior sees and falls into shock. The driver is scared and calls 9-1-1, but leaves the scene of accident causing a hit-and-run situation. By the time the police and ambulance gets there, the senior still haven’t left the crime scene. The police interrogate the senior. Sadly, the senior has Alzheimer’s disease. On top of that, he is still in shock. The senior doesn’t remember the license plate of the car. If the senior had therapy, his chance of having Alzheimer’s disease would be slim and Kyle will be able to sue the driver.

This situation shows that yes, a cure for Alzheimer’s disease can affect third parties.

Chapter 2 -Media Article

"Holly Jolly Yule expected for retailers"
The Province -Wednesday, November 8, 2006

The Christmas season is bringing many open jobs in BC's job market in retailing positions. This year, it is expected that there will be a 7% increase of sales during Christmas. This will result in BC having the second-highest increase in December's retail sales in Canada. Also, the slowing pace of home sales in BC will leave people with more money in their wallets for more Christmas purchases. Sadly, it will mean credit-card balances and loans in BC will continue to "advance at an unhealthy pace, up about 10% this year from 2005" said TD Bank.

Throughout the country, holiday sales will increase to a respectable 6%. There is an estimate of an additional $1.6 billion spent in December at Canadian retailers. Certain stores such as home electronics (DVD Players, TV sets, etc), shoes, clothing, accessories, jewelry, sporting goods, books, and music are among the most popular items purchased during the Christmas.

On a separate report, the Conference Board of Canada views BC's economics prospects. BC's GDP will grow by 3.9% this year, but will slow down to 3.1% in 2008. Retail sales are expected to grow 7.1%. The jobless rate should average to 4.7% this year and down to 4.5% in 2008.

Relationship to Ch.2-Supply vs. Demand

Although the number of jobs available may not seem relevant to supply and demand, it does in theory. Demand is made by people that have the desire and ability to purchase a certain product. Usually the ability to purchase an item is through the exchange of money. Money is gained through working. A job is required to get paid work. In the end, jobs go hand in hand with supply and demand.

The increase of jobs available in BC is a great chance for the unemployed and teenagers to attain a seasonal job. Typically employers are less likely to hire people with a lack of experience. But now that retail sales are expected to grow 7.1%, there is considered a shortage of experience workers applying for a seasonal job. With this in mind, employers are more likely to hire people with little to no experience. For those with some experience, they will easily attain a job this Christmas. This increases the rotation of money. More people will have more money, and they will spend more. Demand for items they couldn't afford before will increase and the supply will more likely increase also.

Chapter 1 -Media Article

"Cheaper oil narrows US trade gap"
BBC News -Thursday, November 9, 2006

On Thursday, November 9th, United States of America widens trade with China. They traded to a record of $23 billion. Chinese televisions, mobiles phones, and toys are some of the things that are going to arrive in United States of America before Christmas.

Americans and the Chinese have been in a politcally sensitive conflict. Americans believe that China keeps its currency low to boost their exports. In September's figures, it showed that America's imports fell 2.1% as exports increased 0.5%. This came from a $3.1 billion drop in America's foreign oil bill. Their oil bill dropped 10.5% to $26.3 billion.

The Democrates--who have control of United States of America's House of Representatives--said they will address this change.

Relationship to Ch.1-Resource and Scarcity

With their drop in oil bill, America can afford to increase their exports. Also they don't need to import as much because they can produce more. A smaller oil bill means that they can still charge their citizens the same amount of money for their oil, or they can lower the price of oil. Personally, I think they will lower it a bit so American citizens cannot complain, but the government will take advantage of the extra pocket money.

Let's just assume that the American government will lower oil prices due to the drop in their oil bill. With a lower price, the demand curve is obviously going to increase. More and more demand will be made for the limited amount of oil. Soon, prices will increase again. United States of America needs oil to support their troops in Iraq.

Aside from the war in Iraq, I think any other natural disasters such as Hurricane Katrina and Rita will affect oil prices. Much more oil will be in demand and the price will simply increase.

Will the drop in oil bill boost America's economy? Will it decrease its imports even more?

I think that it will help America's already prospering economy. Despite what people want to think, more money means more power. With this, America can increase its exports to earn more profit.