Dinner Party Economics Essay

Good Essays
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
Get Access