http://www.vancouversun.com/technology/Wind+Mobile+launches+Vancouver/3110612/story.html
Summary:
The article is about Wind Mobile opening in Vancouver. It is know for its lower-cost wireless service. Including Vancouver, Wind Mobile is in six cities. With an additional telecommunication company, it increases the competition in Canada’s wireless market. There are no contracts that allow customers to leave if they don’t enjoy the provided service. Wind offers many features such as: unlimited talk and data plans at no extra cost upon signing with them, 50% off on the first six months with the company before June 30, and for each friend one introduces, one month of wireless service is free.
Connection:
With Wind Mobile joining the wireless industry in Vancouver, this increases the competition. This also creates a more competitive oligopoly. Oligopoly is a competitive situation characterized by an industry that is comprised of only a few firms. Other companies will be significantly affected because they might have to change their services according to Wind’s cheaper plans in the market now. Market share will also be lost to Wind. With the 50% off for the first six months, a lot of people would be attracted to this promotion because a lot of other companies don’t offer this.
Reflection:
In my opinion, with Wind being an additional wireless industry in Canada, it benefits the consumers. Companies such as Fido and Rogers will have to consider the promotions that Wind offers. It is likely that these plans are only temporary to attract customers. It would be hard for Wind to really make a profit with these types of promotions. Therefore eventually they’ll have to increase the prices for their plans. In the end, Wind will be like any wireless network company.
Thursday, June 10, 2010
Monday, April 26, 2010
Arizona immigration law crosses the line
http://www.vancouversun.com/news/Arizona+immigration+crosses+line+Obama+says/2946466/story.html
Summary:
On Friday April 23, 2010 U.S. President Barack Obama initiated a new immigration law in Arizona. With the new law, it gives privilege to officers to stop individuals and check their identification due to suspicion of being an illegal immigrant or have a criminal background. This new law is very controversial because many people believe that it can lead to racial profiling which is a very severe problem in the U.S. The purpose for creating this law was because too many illegal immigrants were sneaking pass the borders. Obama believes that this law will drastically decrease the amount of people who are illegally sneaking pass the borders. Studies reveal that there are 11 million people who are illegal immigrants and majority of them are from Mexico. 11 million people are cheating the U.S. system and escaping taxes.
Connection:
With this law in act, there will be a significant decrease in the amount of people coming and going from Arizona. This will hurt the tourism industry because people don’t want to go through the trouble of being searched for suspicion. The revenue that the tourism business earns will definitely decrease. Therefore there will be less government spending and the overall economy will decrease. Also tourist attraction sites like shopping areas will be affected because of the decrease of traffic.
Reflection:
In my opinion this will prevent a lot of illegal immigrants trying to sneak into the U.S. With less illegal immigrants, it will benefit the U.S. economy. Although some people may not like this law because it is a big hassle to be checked even though one is not a suspect. Looking at this situation in a open minded perspective, in the end all the benefits is for the country. With the 11 million illegal immigrants, they are avoiding taxation. Thus, the government will have less money to spend into health care, education and infrastructure departments.
Summary:
On Friday April 23, 2010 U.S. President Barack Obama initiated a new immigration law in Arizona. With the new law, it gives privilege to officers to stop individuals and check their identification due to suspicion of being an illegal immigrant or have a criminal background. This new law is very controversial because many people believe that it can lead to racial profiling which is a very severe problem in the U.S. The purpose for creating this law was because too many illegal immigrants were sneaking pass the borders. Obama believes that this law will drastically decrease the amount of people who are illegally sneaking pass the borders. Studies reveal that there are 11 million people who are illegal immigrants and majority of them are from Mexico. 11 million people are cheating the U.S. system and escaping taxes.
Connection:
With this law in act, there will be a significant decrease in the amount of people coming and going from Arizona. This will hurt the tourism industry because people don’t want to go through the trouble of being searched for suspicion. The revenue that the tourism business earns will definitely decrease. Therefore there will be less government spending and the overall economy will decrease. Also tourist attraction sites like shopping areas will be affected because of the decrease of traffic.
Reflection:
In my opinion this will prevent a lot of illegal immigrants trying to sneak into the U.S. With less illegal immigrants, it will benefit the U.S. economy. Although some people may not like this law because it is a big hassle to be checked even though one is not a suspect. Looking at this situation in a open minded perspective, in the end all the benefits is for the country. With the 11 million illegal immigrants, they are avoiding taxation. Thus, the government will have less money to spend into health care, education and infrastructure departments.
Tuesday, April 6, 2010
Canada’s consumers’ incomes not keeping up with debt levels, study finds
http://www.vancouversun.com/business/Canada+consumers+incomes+keeping+with+debt+levels+study+finds/2754124/story.html
Summary:
Canadians are spending more freely due to cheap credit. Their incomes cannot support their magnitude of spending. The appreciating rate of assets being purchased is not at par with the liabilities. Therefore people cannot pay off the amount of debt owed. The consumer capability index measures a consumer’s ability to spend. It is based on: debt-to-income, debt-to-asset ratios, real income growth, long-term unemployment rate, house price to income ratio, personal savings rate, and personal bankruptcy rate. A mortgage is 147 percent of a person’s income. Although they receive an income growth with low interest rates, nevertheless, people are still spending. The low interest rate stimulates and encourages people to borrow money and spend it to help our economy. With increased interest rates, people would rather pay off their debts and start saving.
Connection:
People are spending more money due to low increased incomes and low interest rates. Low interest rates encourage people to easily spend money. Thus, people are putting more money into our economy and this inflation will occur. As the demand increases because of consumer spending, the total demand for goods and services would ultimately exceed the supply. This results in a demand-pull inflation. This would eventually lead to the increased prices in the Consumer Price Index. With families spending more money, it allows businesses will experience increase in revenue. This leads to businesses having the potential to increase wages. In the circular flow of money, increased wages does not support the amount of debt owed.
Reflection:
In my opinion, the demand-pull inflation is not a good idea. Due to the habits of consumers, the debts will end up compiling up. In the early stages, it wouldn’t be too difficult for consumers because of low interest rates. In the long run, their debts will be their Achilles heel. If this continues and people are unable to pay off their debts, our economy will go into recession. It is significant that the inflation rate is controlled so the economy can stay inert.
Summary:
Canadians are spending more freely due to cheap credit. Their incomes cannot support their magnitude of spending. The appreciating rate of assets being purchased is not at par with the liabilities. Therefore people cannot pay off the amount of debt owed. The consumer capability index measures a consumer’s ability to spend. It is based on: debt-to-income, debt-to-asset ratios, real income growth, long-term unemployment rate, house price to income ratio, personal savings rate, and personal bankruptcy rate. A mortgage is 147 percent of a person’s income. Although they receive an income growth with low interest rates, nevertheless, people are still spending. The low interest rate stimulates and encourages people to borrow money and spend it to help our economy. With increased interest rates, people would rather pay off their debts and start saving.
Connection:
People are spending more money due to low increased incomes and low interest rates. Low interest rates encourage people to easily spend money. Thus, people are putting more money into our economy and this inflation will occur. As the demand increases because of consumer spending, the total demand for goods and services would ultimately exceed the supply. This results in a demand-pull inflation. This would eventually lead to the increased prices in the Consumer Price Index. With families spending more money, it allows businesses will experience increase in revenue. This leads to businesses having the potential to increase wages. In the circular flow of money, increased wages does not support the amount of debt owed.
Reflection:
In my opinion, the demand-pull inflation is not a good idea. Due to the habits of consumers, the debts will end up compiling up. In the early stages, it wouldn’t be too difficult for consumers because of low interest rates. In the long run, their debts will be their Achilles heel. If this continues and people are unable to pay off their debts, our economy will go into recession. It is significant that the inflation rate is controlled so the economy can stay inert.
Tuesday, March 2, 2010
Chapter 7 - Money and the Canadian Banking System
http://www.vancouversun.com/business/debit+cards+credit+cards+expect+higher+prices/2342124/story.html
Summary
Rumors say that there is a hidden fee within the credit card system which will eventually be allocated with debit cards. Although the rate is around a few cents per transaction, however, they can quickly add up to become a significant amount of money. Canada’s retail merchants experienced an estimated last year of 4 billion dollars in hidden credit card fee. Merchants are also concerned that they are charged more from accepting premium cards such as the gold, platinum, and travel cards. Consumers are usually automatically upgraded to premium cards by their financial institution. Finance Minister Jim Flaherty said that a voluntary code that will prevent financial institutions from doing this has been introduced last month.
Connection
The fact that credit cards are one of the most popular ways of payment in Canada, there will surely be a problem when the hidden fee is associated with debit cards also. It is clearly that people find it more convenient to use credit or debit cards as a payment because they are easily divisible and portable. Merchants will face many more problems as people begin to use credit and debit cards more often. It will create more problems, and retailers will rather accept paper currency instead of accepting credit or debit cards as a payment.
Reflection
I believe it is pretty ‘shady’ how these hidden fees are used while consumers have no idea that they even exist. With the new voluntary code introduced, financial institutions will be unable to automatically upgrade one’s credit card. This will help prevent people to stop paying this hidden fee. I think it is the financial institution’s responsibility to provide all the facts about credit cards to the individual. On the other hand it is also the responsibility of the individual to be aware of these hidden fees by asking questions to their financial institutions.
Summary
Rumors say that there is a hidden fee within the credit card system which will eventually be allocated with debit cards. Although the rate is around a few cents per transaction, however, they can quickly add up to become a significant amount of money. Canada’s retail merchants experienced an estimated last year of 4 billion dollars in hidden credit card fee. Merchants are also concerned that they are charged more from accepting premium cards such as the gold, platinum, and travel cards. Consumers are usually automatically upgraded to premium cards by their financial institution. Finance Minister Jim Flaherty said that a voluntary code that will prevent financial institutions from doing this has been introduced last month.
Connection
The fact that credit cards are one of the most popular ways of payment in Canada, there will surely be a problem when the hidden fee is associated with debit cards also. It is clearly that people find it more convenient to use credit or debit cards as a payment because they are easily divisible and portable. Merchants will face many more problems as people begin to use credit and debit cards more often. It will create more problems, and retailers will rather accept paper currency instead of accepting credit or debit cards as a payment.
Reflection
I believe it is pretty ‘shady’ how these hidden fees are used while consumers have no idea that they even exist. With the new voluntary code introduced, financial institutions will be unable to automatically upgrade one’s credit card. This will help prevent people to stop paying this hidden fee. I think it is the financial institution’s responsibility to provide all the facts about credit cards to the individual. On the other hand it is also the responsibility of the individual to be aware of these hidden fees by asking questions to their financial institutions.
Monday, January 25, 2010
Chapter 3 and 4
http://www.theglobeandmail.com/news/national/bc-promises-hst-rebates-for-schools-hospitals/article1431849/
B.C. promises HST rebates for schools, hospitals
Summary:
B.C. government retreated on the new harmonized sales tax, which promised around $235 million worth of rebates to public schools and hospitals. Last summer Finance Minister Colin Hansen announced that HST will be introduced in British Columbia in July of this year which combines the 5% GST and the 7% PST. The new rebates ensure that health and education are excluded from any additional tax charge after HST is introduced; however, taxes will be granted upon serves and particular goods which currently exempt PST. Trustees warn Mr. Hansen that due to HST there will be an increase of approximately $32 million each year to education costs. The B.C. Liberals tried to lie to British Columbians about the HST and they are tremendously opposed to this tax.
Connections:
The government plays a role in the market where in this case it is collecting tax money. What the government is trying to do is generate revenue for themselves. It also relates to GDP in Canada. With the introduction of HST, the GDP will surely decrease because people will start to spend less. For businesses such as restaurants and bars, their profits generally will start decreasing because of the extra 7% consumers will have to pay on their purchases. It ties into the theory of ability to pay. Homeowners will now have to pay a larger amount of money for their property tax.
Reflection:
Personally I do not like the HST tax for various reasons and for others change is not always a positive thing. I believe 12% tax is a large percentage of tax that we have to pay. Also such privileges of dining out and shopping for clothes where one can exempt PST would be taken away from consumers and damaging to restaurants and bars. With our economy at this state, introducing HST will create a disincentive for consumers to spend money while we need people to be spending money into the market in order to stimulate the economy.
B.C. promises HST rebates for schools, hospitals
Summary:
B.C. government retreated on the new harmonized sales tax, which promised around $235 million worth of rebates to public schools and hospitals. Last summer Finance Minister Colin Hansen announced that HST will be introduced in British Columbia in July of this year which combines the 5% GST and the 7% PST. The new rebates ensure that health and education are excluded from any additional tax charge after HST is introduced; however, taxes will be granted upon serves and particular goods which currently exempt PST. Trustees warn Mr. Hansen that due to HST there will be an increase of approximately $32 million each year to education costs. The B.C. Liberals tried to lie to British Columbians about the HST and they are tremendously opposed to this tax.
Connections:
The government plays a role in the market where in this case it is collecting tax money. What the government is trying to do is generate revenue for themselves. It also relates to GDP in Canada. With the introduction of HST, the GDP will surely decrease because people will start to spend less. For businesses such as restaurants and bars, their profits generally will start decreasing because of the extra 7% consumers will have to pay on their purchases. It ties into the theory of ability to pay. Homeowners will now have to pay a larger amount of money for their property tax.
Reflection:
Personally I do not like the HST tax for various reasons and for others change is not always a positive thing. I believe 12% tax is a large percentage of tax that we have to pay. Also such privileges of dining out and shopping for clothes where one can exempt PST would be taken away from consumers and damaging to restaurants and bars. With our economy at this state, introducing HST will create a disincentive for consumers to spend money while we need people to be spending money into the market in order to stimulate the economy.
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