Banking as a Positively Pragmatic Aspect in the National and Global Economy

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Debating the topic of the size of banks is much like debating the topic of the size of the government; should a one industry play such an imperative role in the economy? Although many argue that it is unrealistic to expect any industry of this size to not take advantage of their role, and—like the government, the concentration of power has a history of negative effect on the economy, it must be remembered that banking is a competitive industry that differs from the government in a multitude of ways. The endless speculations and conspiracy theories that banks are evil conglomerates can easily be dismissed by the reality of the function of banks. Though the profits of banks and thus the salaries of the individuals who run banks appear to overzealous, their significant contribution to the economy acts as validation. Furthermore, the banks’ predominance in the Canadian economy is not necessarily negative as it offers the expansion of the economy as a whole; services promote economic activity outside the norm, and so the establishment of small businesses is promoted. Most predominantly, banks regulate the economy in a competitive way that does not hinder activity, unlike the government’s attempts to intervene within the economy; when this regulation is originating from a competitive market as opposed to an invulnerable one (the government), the whole economy benefits. Therefore, banking and its involvement in the economy is beneficial.
The profits that banks receive as well as the higher than average salaries they administer are generally considered cause for concern among Canadians. However, the amount the banking industry contributes to the economy is regularly overlooked, thus making a balanced equation appear disproportionate. CE...

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...ess, Canadian. "Canadian bankers rank among highest-paid — and overpaid — bank CEOs in North America." Financial Post 30 May 2013, n. pag. Web. 21 Jan. 2014.
"Banks as Employers." Canadian Bankers Association. N.p., 19 Jul 2013. Web. 21 Jan 2014.
"2013 BAI - Finacle Global Banking Innovation Awards Winners Announced." Marketwired. N.p., 05 Nov 2013. Web. 21 Jan 2014.
"Canadians well-served by competition, choice and innovation in banking: CBA president." Canadian Bankers Association. N.p., 09 Oct 2013. Web. 21 Jan 2014.
Lundy, Matt. "Canadians increasingly becoming entrepreneurs and small business owners."Canadian Business 03 October 2012, n. pag. Web. 21 Jan. 2014.
"Tax Season 10 surprising stats about small business in Canada." CBC News. N.p., 17 Oct 2011. Web. 21 Jan 2014.
"Stability in Canada's Output, and Why It Matters." Bank of Canada. N.p.. Web. 21 Jan 2014.

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