Dinner Party Economy Essay

1216 Words3 Pages

Over the past two quarters Canada has experienced a continuous decline in GDP. Many factors contribute to the recession and decreases in the financial stability of our country. Factors that either contribute or reveal that Canada is in a poor economic position are increasing unemployment rates, surging price levels, and rising interest rates. These opposing contributions force consumers to save their money instead of putting it back into the economy. This then diminishes the economy, forcing the recession onto our citizens. The novel, Dinner Party Economics by Eveline J. Adomait and Richard G. Maranta and various reputable sources further explain the topics regarding to this upcoming recession. Canada has been hit by a brick wall of negative …show more content…

If this growth rate is too quick, it can lead the economy into a recession. The inflation of prices has doubled since 2015, proving economic expansion. Due to the business cycle, when the economic expansion is finished, recession comes soon after. The job market in Canada has been declining slope, making jobs more scarce to the Canadian workforce.According to Trading Economics, the unemployment rate has grown from 6.6 percent in January 2015 to 7.2 percent in January 2016. In Dinner Party Economic it explains the relationship between inflation and cyclical unemployment and how both topics never occur at the same time, “We don’t see inflation and cyclical unemployment occurring at the same time, which is why economists often talk about the unemployment and inflation as a trade-off”, …show more content…

CBC News says that with the US Dollar continuously increasing, prices for United States oil will continue to fall. A big consumer of our exported oil is the United States. Since they can produce oil at a cheaper price then we can, oil rigs in Canada begin to lose demand. To recover from oil prices lowering and the cost of producing it is rising, the Canadian oil industry decided to lay off workers. This caused unemployment to rise and National Income to decrease. With average income decreasing, consumers have the incentive to save, lowering GDP. With the economy starting to fall interest rates will fall and a domino effect

Show More
Related

  • Analysis of Tim Hortons

    557 Words  | 2 Pages

    The global economy has been recovering from the financial crisis which occurs in 2008, then has a weak growth for most developed countries over 2012 and 2013. But economic activity in Canada has expanded at a faster pace than most other major advanced countries in 2012; however, economic performance in Canada has been unsteady throughout 2013 (The Economic review, 2013). After the last quarter in 2010 GDP growth rate grows rapidly, the GDP grows slowly but steadily in 2012 which remains at around 3 percent. Real GDP growth rate in Canada grows slowly in the first quarter of 2013, but increased by 5 percent in the second quarter ,then remains the same level until the first quarter of 2014 (Statistics Canada, 2014). In 2014, the Canadian government take a series economic action plan as a guide for the economy development such as improving investment conditions, ...

    Read More

  • Cocktail Party Economics Summary

    735 Words  | 2 Pages

    From classroom to a cocktail party, having knowledge in today’s economics is definitely an asset when it comes surviving in the world of business. Cocktail Party Economics, by Eveline Adomait, and Richard Maranta undeniably satisfies as an economic training book, helping you understand the concepts of basic economics. The book brings to light many theories and thoughts, which are explained in a certain way that help readers easily, compare and relate them to each other. During the first couple chapters of the book, the main theories presented are scarcity, value, opportunity cost, production, and absolute/comparative advantage. Believe it or not, all of these theories are relatable to Supply and Demand; the two concepts introduced in chapters six and seven.

    Read More

  • The Pros And Cons Of Macropoland

    719 Words  | 2 Pages

    ...ts profit. This causes an increase in unemployment. Deflation also affects loans. When deflation occurs, borrowers are paying back loans in dollars that are worth less than expected. So one’s income may decrease, but the size of their loan stays the same, making it more difficult to pay off.

    Read More

  • Canadian Trade Balance Analysis

    889 Words  | 2 Pages

    The Canadian economy and the United States economy tend to move together because of the amount of transactions that take place within the two nations due to their geographical proximity. With the United States recently experiencing a downturn in the economy, analysts estimate that the Canadian economy will not be far behind. However, in the past 10 years the Canadian economy and especially the trade balance have been very healthy.

    Read More

  • Current Macroeconomic Situation in the United States

    883 Words  | 2 Pages

    In conclusion, the current macroeconomic situation in the United States is characterized by moderate growth because of better economic conditions that were brought by the events of 2013. The country has experienced moderate economic growth since the 2008 global recession but has shown real signs of momentum. While the country is not concerned about recession or inflation, the rate of unemployment is still a major challenge despite improved consumer and business confidence. As a result, the Federal Open Market Committee or Federal Reserve System needs to adopt fiscal and monetary policy initiatives that help address the unemployment issue and promote high economic growth.

    Read More

  • Geography: Regions of Canada

    820 Words  | 2 Pages

    ...nguage, and religion all make up Canada’s human face, but also front how the cultural accommodation will continue with the risk of losing Canada’s main traditions. Faultlines again come into perspective within demographic issues, especially with newcomers/old-timers, aboriginal population expansions, and French/English language. The core/periphery model is also represented. The end of the chapter places a focus on Canada’s economic face as well, dealing with stresses inside the global economy as well as its strong dependency on the U.S markets (Bone, 169) especially with the stimulating global recession. Canada’s economic structure leans on the relative share of activity in the primary (natural resource extraction), secondary (raw material assembly), tertiary (sale/exchange of goods and services), and quaternary (decision-making) sectors of the economy (Bone, 166).

    Read More

  • Quebec Nationalism

    1698 Words  | 4 Pages

    People outside of Canada are baffled at how Canada ended up in such a state of affairs. Canada as a country has a lot going for it. A high GNP, and high per capita income in international terms. It is ranked at the top of the...

    Read More

  • Myth of Powerlessness

    1083 Words  | 3 Pages

    Canada’s economic troubles is not unique. Although, Canada is enjoying a period of relative economic growth, and the level of unemployment is at its lowest level since April 1976 at 6.8% in January 2001 (Tam). However, these 6.8% still mean 1.1 million people jobless. McQuaig argues that combating the unemployment should be the number one national economic policy, at times at the expense of the corporate and governmental financial institutions and currency speculators. The fiscal conservatism of Bank of Canada under Gordon Thiessen, the bank’s governor, and anti-inflationism which have become, it seems, the idée fixe for most state financiers became a source of tremendous political apathy, hindering the capacity of elected officials to carry through on their more progressive and egalitarian campaign promises.

    Read More

  • AMERICAN INFLUENCE ON CANADA IN 1920'S

    780 Words  | 2 Pages

    ...oss national product dropped 40%, 30% of the labour force was out of work, one fifth of the population became dependent on government assistance and wages fell. The close trade bonds and economic reliancy made Canada go into a downward spiral of economic distress.

    Read More

  • Life During The Nineteen Eighties

    979 Words  | 2 Pages

    In the nineteen eighties Canada saw a multitude of positive and negative changes that taught Canadians many valuable lessons. Firstly, In Canada we are known for many good things and many bad things, and unfortunately we are very dependent on other nations such as the United States, Which leads us into creating the NEP also known as the National Energy Program. The NEP had three main goals to achieve before the mark of the nineteen nighties and it was to establish at least fifty percent of Canadian ownership of the oil and gas industry, to make Canada more self-sufficient in energy and lastly to create a better distribution of the revenue from the oil. Along the way of the NEP program there had many bumps on the road but in the end the control of the energy industry was increased by 19 percent, giving us a great economic feat (Don Quinlan, 291).This was very significant because it had reduced Canada’s dependence on foreign oil and also helped us gain control of the Canadian energy industry. In 1987 the Canadian government had agreed upon the Canada-united states Free Trade Agreement (CUSFTA); this agreement had created the elimination and reduction of tariffs therefore allowing Canada ...

    Read More

  • Single Parenting in Canada

    1779 Words  | 4 Pages

    Hurtig, M.(2002). The Vanishing Country. Is It Too Late To Save Canada? Toronto. Canada. McClelland & Stewart Ltd.

    Read More

  • Current Employment Trends In Canada

    397 Words  | 1 Pages

    Another growing trend in the Canadian labour market is the number of jobs a worker has. Working families work more than one job so that they can increase their household income by working more hours in the week, they are able to increase their income. This is becoming a big issue for many Canadians, parents are finding less and less time to spend with their family and more time at work. Even though the Canadian labour market has increase over the last couple of decades, the income level has been fixed for many Canadian

    Read More

  • Canadas Economy In 1996

    1391 Words  | 3 Pages

    Canada can be said to be in a period of slight recession because there is

    Read More

  • Saudi Arabia's Oil Sector: Economic Strength and Vulnerability

    1646 Words  | 4 Pages

    In fact, oil exports determines the expenditure, government revenues and foreign earnings, and these in turn are the primary deriver of aggregate demand. The IMF estimates that oil revenues account for about 90 percent of government revenues, 85 percent of export revenues and around 40 percent of overall GDP. Thus, low oil prices will translate sequentially into lower export revenues, lower government revenues, and lower of overall GDP. If the country continues at the same pace of expenditure as before the drop, this indicates that an imbalanced budget (i.e. budget deficit) will occur (see table 1.). To balance the budget, the government could use its fiscal arm to fill in the budget gap by raising taxes, restricting expenditure, cutting subsidies or bit of each. Raising taxes, reducing expenditure or cutting subsidies, the government will face pros and cons for each option. For instance, if the government chose to raise taxes (perhaps imposing taxes since the environment is tax free), consumers will have less disposable income to spend (not applicable under the VAT), inventories will likely increase and investment drops, and unemployment will likely rise. Secondly, if the government restricts expenditure the effect might to be different across sectors. To be specific, reducing expenditure on infrastructure might not be as negative as reducing it on health care. However, because the government expenditure plays a crucial role in the economy, it may not be very good to cut down spending, but instead could allocate the spending on the most needed sectors. Finally, the government could cut subsidies (fuel, electricity..), and this is what actually happened. The subsidies cut was a successful implementation at least on fuel

    Read More

  • Relationship Between Inflation and Unemployment

    1860 Words  | 4 Pages

    Inflation and unemployment are two key elements when evaluating a whole economy and it is also easy to get those figures from National Bureau of Statistics when you want to evaluate it. However, the relationship between them is a controversial topic, which has been debated by economists for decades. From some famous economists such as Paul Samuelson, Milton Freidman etc to some infamous economists, this topic received a lot of attention. However, it is this debate that makes the thinking about it evolve. In this essay, the controversial topic will be discussed by viewing different economists’ opinions on that according to time sequencing. But before started, it is worthy getting a better understanding of the terms, inflation and unemployment.

    Read More

More about Dinner Party Economy Essay

Open Document