New year, new prices !

                  According to recent studies and research, the Guelph research team has predicted that the prices for food will rise significantly in the next year due to this year's summer drought which withered most of the crops in the Midwest region. The university of Guelph team states that the price of general food costs will increased between 1.5%-3.5%. The price of beef and pork will rise 4.5%-6.5%; eggs 3.5%-5%; grain 1.4%-2.7%; and fresh vegetables, fruits and nuts, fish and seafood to raise by 1%-3%. According to the report's lead author Dr. Sylvain Charlebois, "It was the worst drought in about 50 years..It pushed 2012 food prices above expectations". The report also states that we could be experiencing a lot more climate upheaval next year and the current food markets lack adequate food reserves to safeguard against unforeseen shortages or demands.

I strongly hate the raise in prices (I'm brown so I like to see my money inside MY pocket not in someone else's) but I understand the need for this so I'm not going to complain about it. This article strongly ties in with many of the concepts that we learned in our course such as supply and demand and demographic trends esp. geological. Because of the drought in the Midwest, there exists a scarcity for foods and thus since the demand for the food is high and there is not an abundant supply of the product, the owners are trying to raise the prices. Also, this article teaches how changes ( whether small or big, natural or unnatural)in one place can also have a great impact in other places. I think another reason the government is planning to raise the prices of the goods to meet the quota is to get more dollars circulating within our own economy rather than importing a lot from outside. As we studied in our course, it's always best to limit getting too many exports and making more goods within your country. A country should have a greater import level than exports in order to have a stable economy.


For more information on this topic, please refer to this article by the Toronto Star: http://www.thestar.com/living/food/article/1299380--food-prices-predicted-to-rise-in-canada-in-2013

Money on the move : More money for the auto sector

      As per the article, the federal government is planning to invest another $250 million into the automotive sector to help manufacturers develop stronger, safer and more fuel-efficient vehicles. Prime Minister Stephen Harper announced today at the Ford plant in Oakville Friday that the feds are going to renew the Automotive Innovation Fund to help the struggling automotive industry. The industry had significantly increased his sales since the beginning off the contract in 2008.The government says the initial $250 million spurred $1.6 billion in spinoff investments. Friday's announcement followed surprising economic numbers that showed 40,000 jobs were created last month — 30,000 of them in Ontario — to bring the unemployment rate to a four-year low at 7.1%. The deal is really good for the economy because, as the results explain it self, it has created more jobs and have caused more circulation of currency within the economy.

                   Personally I support this contract by the feds because, although it is basically just another publicity stunt by Harper to stay in power, it has also helped Canada tremendously. Yes, Canada doesn't have a car company/manufacturer and thus all the money that is being pumped into this sector are being granted to the automakers who are either American or other foreign maker but on the bright side a lot of new jobs have been made and as a result several Canadians have been hired. Also, since this money is mostly for the manufactures of the other countries such as America, it will help to improve their economy as well. If the economy of America improves, it is also beneficial for us because our nation is heavily dependent on our neighbors. But one negative of this deal is that, the loyalties of the companies will stay within their countries of origin so although Canada invested so much money into the automobile industry, it won’t greatly benefit us. I think that the automobile industry is actually doing pretty good already and this was just another public stunt by Harper so prove that he is a social idealist and he cares about the economy whereas this move probably might have just added a few extra millions to his rich friends and not really affect the middle class people.

For more information on this article, please refer to the original article at :
http://www.torontosun.com/2013/01/04/canada-does-not-intend-to-remain-a-long-term-gm-shareholder