http://www.calgaryherald.com/business/Walmart+planning+115M+Balzac+plant/1576231/story.html
According to the Calgary Herald, Walmart Canada is going to build a distribution centre in Balzac, Alberta, for $115 million. It will service Walmart's western Canadian market. Set to be 400 000 square feet and a place for fresh food to support expansions, 1 400 jobs will be generated, 800 of which are for trade and construction and 600 more once the centre is in full operation at the end of next year. After this facility is built, it will service the 120 Walmarts in Canada, with approximately 1 million cases of products going through each week. In the last year, Walmart Canada has expanded its distribution network by investing $220 million, which supply 312 stores in Canada and employ over 3 200 people.
Walmart Canada's headquarters may be in Ontario, but the company is entirely owned by Walmart of the United States. This makes Walmart a company of foreign ownership, which is when foreign residents invest into Canadian assets and financial securities. This $115 million distribution centre is no exception to that. Benefits of foreign investment in Canada have been listed in this chapter, which can be applied to the upcoming facility in Balzac. Of course, by investing millions of dollars into Canada, Walmart gains access to their capital and employment will increase with the building of this facility. As noted in the article, 1 400 jobs will be open for people during and after construction. Not only that, but increased competition and improved productivity will be benefits for Walmart Canada. By building one of the biggest perishable-food buildings in the nation, Walmart will be able to have an edge on fresh food for the western Walmarts in Canada. Since Walmart already prides itself with its low prices, building a facility to keep food fresh can only help lower prices even more.
I've actually only ever been to Walmart once in my life and it was because the newest one opened up and it's really close to where I live. I was amazed at the variety of goods they sell, ranging from bread and yogurt to cleaning products to clothes and purses. I suppose it's a good idea that Walmart Canada is deciding to build a distribution centre because then the food sections of the Walmarts will operate and function better than it already does. Perhaps expansions in the food department of each store will be in place as well. The price of certain foods would probably go down as well but with the same quality, which will certainly please customers.
Monday, June 08, 2009
Friday, April 17, 2009
Chapter 8
http://www.jamaicaobserver.com/magazines/Business/html/20090417T040000-0500_149596_OBS_MOUNTING_PUBLIC_DEBT_TRACKS_FISCAL_INDISCIPLINE__SAYS_WEHBY_.asp
Jamaica’s increasing public debt, which is now a little over $1 trillion JMD (over $13.5 billion CAD), has been a result of a poor track record for meeting fiscal targets. Senator Don Wehby has recently said that since independence in 1962, there has only been a fiscal surplus nine times, which led to never-ending deficits which in turn led to this huge public debt. The total public debt in 1990 was $43.2 billion JMD (over $585.9 million CAD). In 2007, it was $990.8 billion JMD (over $13.4 billion CAD) and now, in 2009, Jamaica’s public debt is over $1 trillion JMD. Several problems have come up from this public debt like reducing funds in order to spend money on social services and limiting Jamaica’s budgets. As a result, Wehby has said that to achieve any economic growth, balancing the budget and reducing borrowing are necessities.
Public debt is defined as all of the money owed by all levels of the government. Because governments usually need to increase the amount of spending money they have over tax revenue, governments would normally need to borrow money and acquire a deficit. If there is a lot of competition for funds, interest rates and borrowing costs will increase. Wehby has said that reducing borrowing would be an important part of economic growth. By reducing borrowing, prices of goods and services would as a result decrease as well. Although Wehby only really said that putting policies and fiscal discipline into place will help with economic growth, it would definitely help out future generations if Jamaica’s economy was back on track.
Canada’s public debt has increased over the years, and if this continues happening, teenagers now who will be out in the “real world” in a couple of years could be facing a big problem. Of course, right now, we may not care too much about public debt or anything of that sort because we have other things to worry about, but eventually, we will most likely find ourselves in situations we don’t want to be in. Once we have to start paying taxes, buying groceries every week, and living on our own, the problems and issues concerning money in the government will definitely be unavoidable.
Jamaica’s increasing public debt, which is now a little over $1 trillion JMD (over $13.5 billion CAD), has been a result of a poor track record for meeting fiscal targets. Senator Don Wehby has recently said that since independence in 1962, there has only been a fiscal surplus nine times, which led to never-ending deficits which in turn led to this huge public debt. The total public debt in 1990 was $43.2 billion JMD (over $585.9 million CAD). In 2007, it was $990.8 billion JMD (over $13.4 billion CAD) and now, in 2009, Jamaica’s public debt is over $1 trillion JMD. Several problems have come up from this public debt like reducing funds in order to spend money on social services and limiting Jamaica’s budgets. As a result, Wehby has said that to achieve any economic growth, balancing the budget and reducing borrowing are necessities.
Public debt is defined as all of the money owed by all levels of the government. Because governments usually need to increase the amount of spending money they have over tax revenue, governments would normally need to borrow money and acquire a deficit. If there is a lot of competition for funds, interest rates and borrowing costs will increase. Wehby has said that reducing borrowing would be an important part of economic growth. By reducing borrowing, prices of goods and services would as a result decrease as well. Although Wehby only really said that putting policies and fiscal discipline into place will help with economic growth, it would definitely help out future generations if Jamaica’s economy was back on track.
Canada’s public debt has increased over the years, and if this continues happening, teenagers now who will be out in the “real world” in a couple of years could be facing a big problem. Of course, right now, we may not care too much about public debt or anything of that sort because we have other things to worry about, but eventually, we will most likely find ourselves in situations we don’t want to be in. Once we have to start paying taxes, buying groceries every week, and living on our own, the problems and issues concerning money in the government will definitely be unavoidable.
Tuesday, March 31, 2009
Chapter 7
http://www.theprovince.com/Cautious+consumers+putting+themselves+credit+card+diet/1318667/story.html
This article from The Province talks about how many consumers are going on a "credit card diet". This means that more people are cutting up their credit cards and resorting to cash to pay for purchases during this tough economic time. After Jessica Hooper found out that there were a record number of job losses in January, she decided there would be "no more living in the moment". "Credit card dieting", according to one advertising agency, will be a major consumer movement this year. People will begin to spend only on things they need and not just on what they want. There are predictions that students will get their first credit card at a later age and that businesses will rely more on cash as opposed to credit cards.
One of the concepts of Chapter 7 is the demand for money, specifically transactions. Transactions are one of the categories of individual demand for money. In order to have day-to-day business, transactions are needed. Also, money is needed to buy things like food and clothing. Businesses require money to pay for the services they need. Consumers' decisions to pay by cash or credit influence the demand for money. Because there is currently a recession and with the "credit card diet", there will be a decrease in how many credit cards are used for purchases and an increase in cash used for transactions. This is probably the opposite of what things were like before the recession when consumers used credit cards to purchase pretty much everything.
Since I don't work, I don't have a credit card. There's no point in having a credit card if I don't make any money, so I pay everything by cash. For me, it's much simpler and I don't have to worry about paying the bills at a certain time of the month and making sure that I have enough money to pay it off. As mentioned in previous blogs, the recession isn't really affecting me, the main reason being that I'm not yet in the workforce. Whenever I do plan on getting a credit card, I'll probably use it for major purchases like buying a car or a house and use cash or debit for smaller purchases like groceries and clothing.
This article from The Province talks about how many consumers are going on a "credit card diet". This means that more people are cutting up their credit cards and resorting to cash to pay for purchases during this tough economic time. After Jessica Hooper found out that there were a record number of job losses in January, she decided there would be "no more living in the moment". "Credit card dieting", according to one advertising agency, will be a major consumer movement this year. People will begin to spend only on things they need and not just on what they want. There are predictions that students will get their first credit card at a later age and that businesses will rely more on cash as opposed to credit cards.
One of the concepts of Chapter 7 is the demand for money, specifically transactions. Transactions are one of the categories of individual demand for money. In order to have day-to-day business, transactions are needed. Also, money is needed to buy things like food and clothing. Businesses require money to pay for the services they need. Consumers' decisions to pay by cash or credit influence the demand for money. Because there is currently a recession and with the "credit card diet", there will be a decrease in how many credit cards are used for purchases and an increase in cash used for transactions. This is probably the opposite of what things were like before the recession when consumers used credit cards to purchase pretty much everything.
Since I don't work, I don't have a credit card. There's no point in having a credit card if I don't make any money, so I pay everything by cash. For me, it's much simpler and I don't have to worry about paying the bills at a certain time of the month and making sure that I have enough money to pay it off. As mentioned in previous blogs, the recession isn't really affecting me, the main reason being that I'm not yet in the workforce. Whenever I do plan on getting a credit card, I'll probably use it for major purchases like buying a car or a house and use cash or debit for smaller purchases like groceries and clothing.
Sunday, March 08, 2009
Chapter 6
http://www.nationalpost.com/story.html?id=1343240
This article is actually a columnist's point of view about the automotive bailout as well as more information on what is going on with that situation. John Ivison, the columnist, states that The Big Three--GM, Ford, and Chrysler--are in really bad shape as many analysts can't see GM or Chrysler surviving without the government helping them. Ivison sees that the biggest reason to go against a government bailout would be the fact that this wouldn't be the last time it happens. He believes that no matter how much taxpayers would have to pay, the government wouldn't be willing to take over an industry that is collapsing and also employing 500 000 Canadians. However, it has been predicted that GM's sales will return to their 17-million-unit sales by 2014. Along with that, The Big Three are currently restructuring to reduce costs of labour and to improve their range of products. Reductions in supply, dealership, and management costs have already been done with GM and Chrysler. Tony Clement, the Industry Minister, remains optimistic and has said that he wants to keep The Big Three up and running so that they can be a part of "a new revolution" for manufacturers.
A concept of Chapter 6 involves the fiscal policy, which is the government's policy on spending that influence macroeconomic conditions in hopes of controlling the economy. One of the things the government can do is to bail out companies. This relates to The Big Three automakers, as those companies have practically begged the government to save them from having to declare bankruptcy. Bailing out companies may help those companies with saving jobs and continuing business, but one may wonder, how exactly does this help with the recession going on right now? Well, David Emerson, a member of the Conservative Cabinet, says that if the government lets the auto companies go bankrupt, it "results in such a blow to confidence that it would deepen the recession." Everyone is already in fear of the current recession, so Emerson's point of view is saying that if The Big Three declare bankruptcy, everyone's fears will only grow stronger.
The Big Three have been in trouble for quite some time now. I'm hesitant to say that the economy has too much to do with this, because I've heard the other automakers like Toyota have been making a record amount of sales in the recent months. I believe that it's more of the fact that consumers are shifting their views on which vehicles are better. Also, some consumers prefer to purchase one brand over the other (it's a marketing term in which I have forgotten already), and many consumers can influence other consumers to think a certain way. Although I agree with the fact that people will lose even more confidence if The Big Three declare bankruptcy, I don't think the recession has anything directly to do with their declining sales and whatnot.
Kind of random--not exactly part of Chp6 blog--but I'll stuff this in anyways...
I recently read a blog post about the economy by a blogger/photographer/traveler by the name of Randall Shirley. He spoke up about the fact that if we want the economy to improve, it's up to us to make it better. We can't just sit around, complain, and be scared because that's not going to help the economy. I completely agree with Shirley's points because our economy is a reflection of our thoughts and behaviours. Right now, it's evident that people are scared and unwilling to spend money. It'd probably be best to not continue to say that people are cutting back on spending and instead, encourage everyone to think positively and spend more. Also, when you look at the big picture, the economic conditions aren't that bad. There are still people going to the mall and hauling around shopping bags, and there are still people--myself included--going on vacations. I recently took a look at the seating plan for my flight to New York in June and most of the seats are all filled, which just goes to show that not everyone is cutting back. Although those kinds of things may not help The Big Three, it could help bring the economy out of the recession.
This article is actually a columnist's point of view about the automotive bailout as well as more information on what is going on with that situation. John Ivison, the columnist, states that The Big Three--GM, Ford, and Chrysler--are in really bad shape as many analysts can't see GM or Chrysler surviving without the government helping them. Ivison sees that the biggest reason to go against a government bailout would be the fact that this wouldn't be the last time it happens. He believes that no matter how much taxpayers would have to pay, the government wouldn't be willing to take over an industry that is collapsing and also employing 500 000 Canadians. However, it has been predicted that GM's sales will return to their 17-million-unit sales by 2014. Along with that, The Big Three are currently restructuring to reduce costs of labour and to improve their range of products. Reductions in supply, dealership, and management costs have already been done with GM and Chrysler. Tony Clement, the Industry Minister, remains optimistic and has said that he wants to keep The Big Three up and running so that they can be a part of "a new revolution" for manufacturers.
A concept of Chapter 6 involves the fiscal policy, which is the government's policy on spending that influence macroeconomic conditions in hopes of controlling the economy. One of the things the government can do is to bail out companies. This relates to The Big Three automakers, as those companies have practically begged the government to save them from having to declare bankruptcy. Bailing out companies may help those companies with saving jobs and continuing business, but one may wonder, how exactly does this help with the recession going on right now? Well, David Emerson, a member of the Conservative Cabinet, says that if the government lets the auto companies go bankrupt, it "results in such a blow to confidence that it would deepen the recession." Everyone is already in fear of the current recession, so Emerson's point of view is saying that if The Big Three declare bankruptcy, everyone's fears will only grow stronger.
The Big Three have been in trouble for quite some time now. I'm hesitant to say that the economy has too much to do with this, because I've heard the other automakers like Toyota have been making a record amount of sales in the recent months. I believe that it's more of the fact that consumers are shifting their views on which vehicles are better. Also, some consumers prefer to purchase one brand over the other (it's a marketing term in which I have forgotten already), and many consumers can influence other consumers to think a certain way. Although I agree with the fact that people will lose even more confidence if The Big Three declare bankruptcy, I don't think the recession has anything directly to do with their declining sales and whatnot.
Kind of random--not exactly part of Chp6 blog--but I'll stuff this in anyways...
I recently read a blog post about the economy by a blogger/photographer/traveler by the name of Randall Shirley. He spoke up about the fact that if we want the economy to improve, it's up to us to make it better. We can't just sit around, complain, and be scared because that's not going to help the economy. I completely agree with Shirley's points because our economy is a reflection of our thoughts and behaviours. Right now, it's evident that people are scared and unwilling to spend money. It'd probably be best to not continue to say that people are cutting back on spending and instead, encourage everyone to think positively and spend more. Also, when you look at the big picture, the economic conditions aren't that bad. There are still people going to the mall and hauling around shopping bags, and there are still people--myself included--going on vacations. I recently took a look at the seating plan for my flight to New York in June and most of the seats are all filled, which just goes to show that not everyone is cutting back. Although those kinds of things may not help The Big Three, it could help bring the economy out of the recession.
Monday, February 23, 2009
Chapter 5
http://www.vancouversun.com/Business/Catalyst+Paper+lays+workers+shuts+down+Campbell+River+mill/1307347/story.html
This article from The Vancouver Sun talks about Catalyst Paper, a paper mill company, that is to shut down its Campbell River paper mill along with laying off more than 525 people at two different mills. The layoffs and closure are due to the fact that the company might not get relief on its municipal taxes, which are $23 million a year. Approximately 350 people work at the paper mill and if the markets don't recover within the next six weeks, then one of its mills may be eliminated. Catalyst Paper is experiencing declining prices and volumes in all of their major markets, and a big issue for the company is taxes.
The concept that relates to Chapter 5 from this article is demand-deficient unemployment. Demand-deficient unemployment results when there is a lack of overall spending in the economy. Although Catalyst Paper is not an actual store and does not sell directly to customers, it can be affected by demand-deficient unemployment. Even though taxes are one of the main issues of the layoffs, it is probably safe to say that the economic recession has a part in this. The businesses that Catalyst Paper sends their products to probably aren't selling very well; therefore they wouldn't need as many workers at the paper mill to make their products.
Pretty much the whole world has seen some form of recession in the last year or so. Many companies from all over are laying off workers and having to shut down various stores. Personally, I don't feel too much of a difference even with the recession. Day-to-day life seems the same, but that's probably because I'm not in the workforce. However, it seems that most if not all of my relatives are doing relatively fine as well. There may be layoffs here and there but none of them affecting the part of the company that they work for. We can only hope that this "economic crisis" will soon be lifted.
This article from The Vancouver Sun talks about Catalyst Paper, a paper mill company, that is to shut down its Campbell River paper mill along with laying off more than 525 people at two different mills. The layoffs and closure are due to the fact that the company might not get relief on its municipal taxes, which are $23 million a year. Approximately 350 people work at the paper mill and if the markets don't recover within the next six weeks, then one of its mills may be eliminated. Catalyst Paper is experiencing declining prices and volumes in all of their major markets, and a big issue for the company is taxes.
The concept that relates to Chapter 5 from this article is demand-deficient unemployment. Demand-deficient unemployment results when there is a lack of overall spending in the economy. Although Catalyst Paper is not an actual store and does not sell directly to customers, it can be affected by demand-deficient unemployment. Even though taxes are one of the main issues of the layoffs, it is probably safe to say that the economic recession has a part in this. The businesses that Catalyst Paper sends their products to probably aren't selling very well; therefore they wouldn't need as many workers at the paper mill to make their products.
Pretty much the whole world has seen some form of recession in the last year or so. Many companies from all over are laying off workers and having to shut down various stores. Personally, I don't feel too much of a difference even with the recession. Day-to-day life seems the same, but that's probably because I'm not in the workforce. However, it seems that most if not all of my relatives are doing relatively fine as well. There may be layoffs here and there but none of them affecting the part of the company that they work for. We can only hope that this "economic crisis" will soon be lifted.
Tuesday, January 27, 2009
Chapter 4
http://www.cbc.ca/canada/edmonton/story/2008/04/22/budget-follow.html
This article from cbc.ca talks about how Alberta is spending too much money and saving too little. The budget for Alberta is $37-billion, which includes a three-year, $22.2-billion construction program for schools, roads, and health-care facilities. As for savings, only $279-million is to be set aside for the province. The Alberta director of the Canadian Taxpayers Federation, Scott Hennig, has said that the government needs to plan for a time when there is little energy revenue. He said, "They'll have no choice essentially to raise taxes or cut spending or dip into savings or go back into debt. I mean those are just four horrible options that this government's going to have to look at if prices drop."
Chapter 4 mentions the growth of government spending. Although the article doesn't specifically mention it, Wagner's law of increasing state activity seems to be a concept as well. According to the article, Alberta is doing some "record spending" even though it plans to save more in the coming year. Two-fifths of the entire spending in Canada is controlled by the government. $37-billion and $279-million is a big difference, so it's clear that Alberta's spending is very high. Wagner's law of increasing state activity states that government expenditures can be expected to grow faster than the total output of goods and services in industrialized economies. There are many factors involved in increased government spending, including the transition from a rural to urban country and the government becoming more involved in the education system. These are true for Alberta, considering there is the $22.2-billion construction program for roads and schools.
Alberta isn't the only province to have increased government spending. BC is definitely one of them. Since Vancouver got chosen to host the 2010 Olympics, there have been millions and millions of dollars put into the budget for the Olympic Games. Just recently, there was news of going over the budget and having to spend even more money. Personally, I'm pretty glad that Vancouver gets to host the Olympics, but then again, $1.6-billion is a lot to be spending on building things that will be used for two weeks. Of course, the venues will probably be turned into something else or used for different occasions in the future, so perhaps the Olympics will be some sort of investment for us.
This article from cbc.ca talks about how Alberta is spending too much money and saving too little. The budget for Alberta is $37-billion, which includes a three-year, $22.2-billion construction program for schools, roads, and health-care facilities. As for savings, only $279-million is to be set aside for the province. The Alberta director of the Canadian Taxpayers Federation, Scott Hennig, has said that the government needs to plan for a time when there is little energy revenue. He said, "They'll have no choice essentially to raise taxes or cut spending or dip into savings or go back into debt. I mean those are just four horrible options that this government's going to have to look at if prices drop."
Chapter 4 mentions the growth of government spending. Although the article doesn't specifically mention it, Wagner's law of increasing state activity seems to be a concept as well. According to the article, Alberta is doing some "record spending" even though it plans to save more in the coming year. Two-fifths of the entire spending in Canada is controlled by the government. $37-billion and $279-million is a big difference, so it's clear that Alberta's spending is very high. Wagner's law of increasing state activity states that government expenditures can be expected to grow faster than the total output of goods and services in industrialized economies. There are many factors involved in increased government spending, including the transition from a rural to urban country and the government becoming more involved in the education system. These are true for Alberta, considering there is the $22.2-billion construction program for roads and schools.
Alberta isn't the only province to have increased government spending. BC is definitely one of them. Since Vancouver got chosen to host the 2010 Olympics, there have been millions and millions of dollars put into the budget for the Olympic Games. Just recently, there was news of going over the budget and having to spend even more money. Personally, I'm pretty glad that Vancouver gets to host the Olympics, but then again, $1.6-billion is a lot to be spending on building things that will be used for two weeks. Of course, the venues will probably be turned into something else or used for different occasions in the future, so perhaps the Olympics will be some sort of investment for us.
Saturday, November 22, 2008
Chapter 3
http://www.thenewsstar.com/article/20081120/OPINION03/811200315
The News-Star, a Louisiana newspaper, had an article about trying to reduce the impact of youth smoking. It talks about how youth can have a big impact for the people that smoke and how there's going to be a youth-led anti-tobacco movement. Their focus is to keep teenagers from starting to smoke, and one of the campaigns is called Raiseup. The goal of Raiseup is to raise the excise tax on cigarettes by $1, where the revenue would go to Louisiana's budget. The article states that "studies show that for every 10 percent increase in the excise tax, youth smoking decreases by 7 percent."
In Chapter 3, an important concept is about excise taxes, which are taxes levied by the government on the suppliers of certain products. The taxes may be used as a source of revenue for the government. In relation to the article, the revenue from the excise tax on cigarettes would go to the state's budget. Along with that, they're hoping that by raising the excise tax, this will help to stop teens from starting to smoke. With the majority of teens, price is a factor for a lot of things, so raising the excise tax on cigarettes may be the solution to reduce teen smoking.
Everyone's probably been exposed to second-hand smoke at some point in their lives, and for those who don't smoke, it's probably just plain disgusting. I don't encourage smoking either, so I think it's a pretty good idea to raise the excise tax for cigarettes. A lot of teens don't work, and for the ones that do, it would be part time and roughly $10/hour, which doesn't add up to nearly as much as a full-time working adult. If there is a price increase, many teens won't be able to afford it, so hopefully they'll think twice before the start. On the other hand, teens who are already addicted to it will probably find some other way to get it, like sponging them off of wealthier friends or family.
The News-Star, a Louisiana newspaper, had an article about trying to reduce the impact of youth smoking. It talks about how youth can have a big impact for the people that smoke and how there's going to be a youth-led anti-tobacco movement. Their focus is to keep teenagers from starting to smoke, and one of the campaigns is called Raiseup. The goal of Raiseup is to raise the excise tax on cigarettes by $1, where the revenue would go to Louisiana's budget. The article states that "studies show that for every 10 percent increase in the excise tax, youth smoking decreases by 7 percent."
In Chapter 3, an important concept is about excise taxes, which are taxes levied by the government on the suppliers of certain products. The taxes may be used as a source of revenue for the government. In relation to the article, the revenue from the excise tax on cigarettes would go to the state's budget. Along with that, they're hoping that by raising the excise tax, this will help to stop teens from starting to smoke. With the majority of teens, price is a factor for a lot of things, so raising the excise tax on cigarettes may be the solution to reduce teen smoking.
Everyone's probably been exposed to second-hand smoke at some point in their lives, and for those who don't smoke, it's probably just plain disgusting. I don't encourage smoking either, so I think it's a pretty good idea to raise the excise tax for cigarettes. A lot of teens don't work, and for the ones that do, it would be part time and roughly $10/hour, which doesn't add up to nearly as much as a full-time working adult. If there is a price increase, many teens won't be able to afford it, so hopefully they'll think twice before the start. On the other hand, teens who are already addicted to it will probably find some other way to get it, like sponging them off of wealthier friends or family.
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