Monday, June 6, 2011
Chapter 6- Hundreds queue for today's Vancouver Apple iPad 2 launch
Summary
The buzz all around Vancouver was about the launch of the Apple iPad 2. Gillian Shaw, from The Vancouver Sun, reported that Colin Lochhead was downtown on March 24, 2011 at 11 p.m. at the Apple store, where he was soon joined by many other hopeful consumers wanting to purchase the new iPad, which went on sale March 25, 2011 at 5 p.m. The Apple staff ensured the satisfaction of their customers and kindly handed out coffee to the people in line, while staff in the Apple store in Pacific Centre, prepared to close at 3p.m to get ready for the launch. Some people were just in line to help their friends out , but ended up also buying the iPad2. Clayton Mckee sacrificed his sleep, just to purchase this new software for his girlfriend. Moreover, by midday the line-up had grown along Granville Street, while other consumers were at other popular electronic stores such as Best Buy and Future Shop.
Connection
From this article, it’s clear to me that many consumers are spending their money without much thought. They are wasting their disposable income on this new software, in which I think most of it “dissaving”. Since the economy isn’t doing as well as it should be, many people shouldn’t be spending more than their disposable income. Furthermore, the consumption of money has definitely increased due to a high demand for the iPad 2, which has almost the same software as the original iPad. Some factors that play a role in this are psychological changes, tastes and preferences and the expectations of consumers. Also, since the iPad was assembled in China, I’m guessing the foreign trade with importing and exporting is injecting into the GDP with the spending. Another factor that ties into this article is investment. Since Apple has made some innovations in the iPad 2, many more people want to purchase it. Moreover, on a side note, GDP has in fact increased .2% since January 2010, which has a role in the investment factor.
Reflection
In my opinion, I think that consumers shouldn’t be spending their money on the iPad 2. I’m 75% sure that Apple will come out with a new innovation in the iPad product line because technology keeps on further advancing. Although having this device is very efficient and convenient, I don’t believe that it is a smart investment. However, in another approach, it has defiantly been a good injection into the economy because of all the spending people are doing. Many consumers took money out their savings to purchase this product, which will hopefully put a boom into the economy. Moreover, I also think that many people wanted to buy this product just to show they live a lavish, high-class lifestyle. Therefore, falling into the trap of markers, helping them make huge amounts of profit.
Wednesday, May 4, 2011
Smart phone- Virtual Article
How long do you think it’s going to take to get all virtual cards? How many years and why?
I think it’s’ going to take approximately 5 to 10 years in order to get all virtual cards because society is going to need time to get use to this. For example, with cell phones, many people didn’t understand the concept of having cellular mobile phones. However, once people started going places and needed a phone for emergency purposes or just to get a hold of someone, everyone started to get one. Therefore, with virtual cards, once people start to realize it’s more convenient and start to get use to the concept, everyone will pick up on it. Also, it will take time in order for us to develop the technology in order to use these cards with proper security features.
Who will not be on board with this new virtual wallet?
I think people who do not like the new virtual wallet will not be on board and will be worried about the cost, security, safety and the whole new learning concept. Some people like doing the paper transition method because they like to keep their receipts and bills as hard copies. Also, the baby boomer generation has already seen so many different technological changes, that they may not like to learn another new thing. They may not trust this new virtual device and may not want to use this new device. Moreover, some consumers that spend too much with credit cards want to use cash to limit their spending. Therefore, this virtual wallet will be a huge dent in their spending problems.
What companies are going to be affected negatively by this? (Name 3)
Credit card companies, mailing industries and leather industries will definitely be affected negatively by this. Credit card companies will suffer because with everyone using this virtual device, they won’t be making any profit. Credit cards will become of no use and the polyvinyl chloride acetate (PVCA) that is the plastic laminated to make credit cards will lose profit and be affected negatively also. With the mailing industries, they will lose profit because they won’t be sending out any credit cards, new promotions or mailing bills. Lastly, the leather industries will no longer be making wallets, which will definitely affect their profit margin since no one will be carrying around wallets. This also falls under the retailing stores losing profit because they won’t be selling any wallets either.
Who is going to make money from this? (Name 3)
The three industries that will make money from this are mobile phone carriers, baking industries and the new virtual idea creators industry. Mobile phone carriers will be making money because more people will need the apps on their phone to do their online baking and they will be selling more of a variety of phones. They may also increase their prices if the demand goes up. Baking industries will make money from this because they will increase the interest fees and charge more fees for a certain amount of transactions. Lastly, the virtual idea creators will be making a lot of money if this new idea follows through. With everyone using this new device, they will be able to advertise and charge money on transactions if they wish to.
I think it’s’ going to take approximately 5 to 10 years in order to get all virtual cards because society is going to need time to get use to this. For example, with cell phones, many people didn’t understand the concept of having cellular mobile phones. However, once people started going places and needed a phone for emergency purposes or just to get a hold of someone, everyone started to get one. Therefore, with virtual cards, once people start to realize it’s more convenient and start to get use to the concept, everyone will pick up on it. Also, it will take time in order for us to develop the technology in order to use these cards with proper security features.
Who will not be on board with this new virtual wallet?
I think people who do not like the new virtual wallet will not be on board and will be worried about the cost, security, safety and the whole new learning concept. Some people like doing the paper transition method because they like to keep their receipts and bills as hard copies. Also, the baby boomer generation has already seen so many different technological changes, that they may not like to learn another new thing. They may not trust this new virtual device and may not want to use this new device. Moreover, some consumers that spend too much with credit cards want to use cash to limit their spending. Therefore, this virtual wallet will be a huge dent in their spending problems.
What companies are going to be affected negatively by this? (Name 3)
Credit card companies, mailing industries and leather industries will definitely be affected negatively by this. Credit card companies will suffer because with everyone using this virtual device, they won’t be making any profit. Credit cards will become of no use and the polyvinyl chloride acetate (PVCA) that is the plastic laminated to make credit cards will lose profit and be affected negatively also. With the mailing industries, they will lose profit because they won’t be sending out any credit cards, new promotions or mailing bills. Lastly, the leather industries will no longer be making wallets, which will definitely affect their profit margin since no one will be carrying around wallets. This also falls under the retailing stores losing profit because they won’t be selling any wallets either.
Who is going to make money from this? (Name 3)
The three industries that will make money from this are mobile phone carriers, baking industries and the new virtual idea creators industry. Mobile phone carriers will be making money because more people will need the apps on their phone to do their online baking and they will be selling more of a variety of phones. They may also increase their prices if the demand goes up. Baking industries will make money from this because they will increase the interest fees and charge more fees for a certain amount of transactions. Lastly, the virtual idea creators will be making a lot of money if this new idea follows through. With everyone using this new device, they will be able to advertise and charge money on transactions if they wish to.
Sunday, April 10, 2011
Great Depression VS Current Recession!
1. How did the Great Depression Start?
The Great Depression started on Tuesday, October 29, 1929; now called Black Tuesday. The United States New York stock exchange had crashed. The stock prices plunged and many people tried to sell their stocks, but no one was buying them. Not only had the stock market caused bankruptcy among people, but the banks who had also invested in the stock market were forced to close down. Another factor that took place during the Great Depression was the Great Plains because they were hit by drought and dust storms.
2. How did the Current Recession Start?
The Current Recession started in December 2007. It was defined as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.” The most severe factors of this recession are the contractions in the housing market and the problems in the financial markets. Also banks increased interest rates causing many people were unable to pay for their house mortgages and the price of oil increased rapidly.
3. How did the government take part following the event? Were/ are they successful attempts?
During the Great Depression, the government spent millions and created work programs. Also they raised tariffs to protect industries within their own countries and created an employment insurance that would help with jobs and decrease the unemployment rate. Although they did these things, the government was unsuccessful. Now during the Current Recession, the government is spending billions on our country, helping larger companies that are near bankruptcy, helping with the unemployment and creating a better economy through technology and science. Moreover, during this recession, the government is quite successful because these attempts are helping and affecting the country in a positive way.
4. What factors are present now that were not present during the Great Depression? ( ie banking, online resources, etc.)
Some factors that are present now that weren’t present during the Great Depression are improved social programs, banking, internet, media and credit cards.
5. How did these two affect US GDP?
These two events extremely affected the United States GDP. They cause people to save more money because they couldn’t afford the luxuries they could in the past; causing many demands to decrease. Many people could only afford to spend their income on the basic necessities. Also the unemployment rate increased, causing less money flow in the economy.
6. Reflection: In your own words, tell me which one has made more of an impact on the world.
In my opinion, I think they Great Depression left more of an impact on the world instead of the Current Recession. One reason is that the Great Depression lasted approximately 10 years. Although we can’t predict when the recession is going to end, at this moment the depression lasted longer. Another reason is that the unemployment rates were much higher in the 1930’s and were nowhere close to the current unemployment rates. The depression left many people jobless and cringing to provide food for themselves and their families. Even though the recession is also causing unemployment issues, the government has hopefully learned from the depression and is going to help people in a more effective way. To conclude, economist say the current recession is worse, but I say to each their own opinion.
Resources:
http://history1900s.about.com/od/1930s/p/greatdepression.htm
http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
http://research.stlouisfed.org/publications/es/09/ES0904.pdf
http://www.buzzle.com/articles/causes-of-economic-recession.html
http://en.wikipedia.org/wiki/Recession
The Great Depression started on Tuesday, October 29, 1929; now called Black Tuesday. The United States New York stock exchange had crashed. The stock prices plunged and many people tried to sell their stocks, but no one was buying them. Not only had the stock market caused bankruptcy among people, but the banks who had also invested in the stock market were forced to close down. Another factor that took place during the Great Depression was the Great Plains because they were hit by drought and dust storms.
2. How did the Current Recession Start?
The Current Recession started in December 2007. It was defined as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.” The most severe factors of this recession are the contractions in the housing market and the problems in the financial markets. Also banks increased interest rates causing many people were unable to pay for their house mortgages and the price of oil increased rapidly.
3. How did the government take part following the event? Were/ are they successful attempts?
During the Great Depression, the government spent millions and created work programs. Also they raised tariffs to protect industries within their own countries and created an employment insurance that would help with jobs and decrease the unemployment rate. Although they did these things, the government was unsuccessful. Now during the Current Recession, the government is spending billions on our country, helping larger companies that are near bankruptcy, helping with the unemployment and creating a better economy through technology and science. Moreover, during this recession, the government is quite successful because these attempts are helping and affecting the country in a positive way.
4. What factors are present now that were not present during the Great Depression? ( ie banking, online resources, etc.)
Some factors that are present now that weren’t present during the Great Depression are improved social programs, banking, internet, media and credit cards.
5. How did these two affect US GDP?
These two events extremely affected the United States GDP. They cause people to save more money because they couldn’t afford the luxuries they could in the past; causing many demands to decrease. Many people could only afford to spend their income on the basic necessities. Also the unemployment rate increased, causing less money flow in the economy.
6. Reflection: In your own words, tell me which one has made more of an impact on the world.
In my opinion, I think they Great Depression left more of an impact on the world instead of the Current Recession. One reason is that the Great Depression lasted approximately 10 years. Although we can’t predict when the recession is going to end, at this moment the depression lasted longer. Another reason is that the unemployment rates were much higher in the 1930’s and were nowhere close to the current unemployment rates. The depression left many people jobless and cringing to provide food for themselves and their families. Even though the recession is also causing unemployment issues, the government has hopefully learned from the depression and is going to help people in a more effective way. To conclude, economist say the current recession is worse, but I say to each their own opinion.
Resources:
http://history1900s.about.com/od/1930s/p/greatdepression.htm
http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
http://research.stlouisfed.org/publications/es/09/ES0904.pdf
http://www.buzzle.com/articles/causes-of-economic-recession.html
http://en.wikipedia.org/wiki/Recession
Thursday, March 3, 2011
B.C. unemployment rate edges up as more join workforce
Summary
On Friday, Statistics Canada reported that as more people looked for work, B.C’s unemployment rate increased to 4.3% in September. There was close to 10,000 people that joined the labor force in September which brought the unemployment rate up 0.3% from August. A labor-market analyst, Robert Mattioli said that the unemployment rate is low and going to stay low for the future to come. The wages in B.C have increased 3.5% in the last year and at the end of August averaged $20.37 an hour, but an Albertan is earning $22.33 an hour, a 5.7% increase. Mattioli said it was a record gap of $1.96 and it’s still going to continue to increase. A report by the Institute of Chartered Accountants in B.C found that although wages in B.C are lower than Alberta, when inflation is taken into consideration, wage is stronger in B.C. In 2006, B.C workers saw the pay increase 1.8% post-inflation, compared to only 0.4% in Alberta, which experienced much higher inflation; according to the BC Check-up report. Moreover, Canada’s unemployment fell to a 33-year low of 5.9% in September, the first time it’s been below 6% since November 1974. On the other hand, wages rose to 4.2%, which was the biggest increase since 1997.
Connection
From this article, since more people started to look for work that weren’t looking before, the unemployment rate increased. This shows that the measure in which unemployment is taken, isn’t very specific and is too broad based. Just because a person is looking for a job, it shouldn’t raise the unemployment rate. This also speculates a bit in structural unemployment because there may be jobs available, yet the skills of an individual might not meet the requirements. Another issue this article talks about is wages and inflation. Although the wages in BC are lower than Alberta, inflation proves that BC wages are stronger and will remain stronger. Even with the $1.96 gap between the two wages, BC came up on top because inflation seemed give us the advantage and stronger wage. Although Canada’s unemployment fell to 5.9%, the wages increased by 4.2%, which somewhat balances it out.
Reflection
In my opinion, I think that just because people have started to look for jobs, it shouldn’t increase the unemployment rate. This just comes to show that the factors that are taken into consideration to put people into the unemployment bracket aren’t an appropriate measure. I think that since we’re coming out of a recession, that’s what made individuals go out to look for a job. However, even if I went out to look for a job, being a student, I wouldn’t be considered in the unemployment bracket. Moreover, I think the Labor Force Survey needs to change some of the guidelines in measuring unemployment. Also, the wages increasing shows that Canada is doing much better than the past years.
http://www.canada.com/vancouversun/news/business/story.html?id=acb8d074-0d8a-4ed3-95b0-832a7b025384&k=60158
Wednesday, January 19, 2011
Flat Tax Pros and Cons
Summary
To this day, it’s been found that the current taxation system is biased against people who are in the lower tax brackets. There is an increase in income of an individual and tax rates, which is called a progressive tax system. The individuals that fall under the low income pay 14% as income tax, and those fall under high income pay 38% in taxes. These exemptions from the rich upset many people, therefore flat tax comes into play. Flat tax is a single taxation, approximately 17%, which would be applicable to any citizens, not based on what they earn. This would shift the tax system from progressive to proportional.
There are some advantages and disadvantages that come with flat tax. One advantage is that everyone would only have to pay a single tax rate. Today, any person who earns more, pays more and if the system switches over to flat tax, it would encourage individuals to be more productive. The second advantage is that flat tax would remove double taxation. Taxes on dividends and capital gains are removed because they are incomes which after being taxed are taxed again. Lastly, another advantage is that filing for flat taxes would become easier, saving time and energy. This would also cause tax evasions to be unlikely.
The one main disadvantage would be that the reduction in tax rates, means that the individuals who earn more, pay less. This will reduce government revenues immensely. If there’s one tax, it’s most likely to cause government a huge loss in revenue. Moreover, even though there are benefits to an uniform tax, there’s still an opinion among society that the rich should pay more.
Connections
From this article, the progressive approach that is today’s taxation is frowned upon because the percentage of income in taxes increase the individual’s level on income. The author is bringing into consideration proportional tax because it would mean that the percent of tax stays the same weather you have a high or low income. Also, the Everyday Economics topic, “Flat Tax: Fair or Foul?”(page 134), ties into this article because it states that flat tax is fair and would save a lot of time. The article in the book also touches matches with the article I found based on the information about the benefits of less tax evasion and the disadvantage of benefiting high-income people more than low-income people.
Reflection
In my opinion, I believe a flat tax would be a smart tax system development because it would relieve a lot of stress off many individuals and it’s much easier on the people who do their taxes. Not to mention, soon we will all be filing tax returns too. Anyways, paying one standard tax rate, creates more equalization among individuals and brings us to a proportional tax system. Although flat tax may benefit high-income individuals more than low-income individuals, I still think that this one disadvantage can be overlooked if you take into consideration all the advantages because I believe that no matter what happens, high-income individuals will always have somewhat of an advantage.
To this day, it’s been found that the current taxation system is biased against people who are in the lower tax brackets. There is an increase in income of an individual and tax rates, which is called a progressive tax system. The individuals that fall under the low income pay 14% as income tax, and those fall under high income pay 38% in taxes. These exemptions from the rich upset many people, therefore flat tax comes into play. Flat tax is a single taxation, approximately 17%, which would be applicable to any citizens, not based on what they earn. This would shift the tax system from progressive to proportional.
There are some advantages and disadvantages that come with flat tax. One advantage is that everyone would only have to pay a single tax rate. Today, any person who earns more, pays more and if the system switches over to flat tax, it would encourage individuals to be more productive. The second advantage is that flat tax would remove double taxation. Taxes on dividends and capital gains are removed because they are incomes which after being taxed are taxed again. Lastly, another advantage is that filing for flat taxes would become easier, saving time and energy. This would also cause tax evasions to be unlikely.
The one main disadvantage would be that the reduction in tax rates, means that the individuals who earn more, pay less. This will reduce government revenues immensely. If there’s one tax, it’s most likely to cause government a huge loss in revenue. Moreover, even though there are benefits to an uniform tax, there’s still an opinion among society that the rich should pay more.
Connections
From this article, the progressive approach that is today’s taxation is frowned upon because the percentage of income in taxes increase the individual’s level on income. The author is bringing into consideration proportional tax because it would mean that the percent of tax stays the same weather you have a high or low income. Also, the Everyday Economics topic, “Flat Tax: Fair or Foul?”(page 134), ties into this article because it states that flat tax is fair and would save a lot of time. The article in the book also touches matches with the article I found based on the information about the benefits of less tax evasion and the disadvantage of benefiting high-income people more than low-income people.
Reflection
In my opinion, I believe a flat tax would be a smart tax system development because it would relieve a lot of stress off many individuals and it’s much easier on the people who do their taxes. Not to mention, soon we will all be filing tax returns too. Anyways, paying one standard tax rate, creates more equalization among individuals and brings us to a proportional tax system. Although flat tax may benefit high-income individuals more than low-income individuals, I still think that this one disadvantage can be overlooked if you take into consideration all the advantages because I believe that no matter what happens, high-income individuals will always have somewhat of an advantage.
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