Economy Essay Example | Topics and Well Written Essays - 1500 words - 1

Economy - Essay Example The government debt increases due to budget deficits do no good but instead create complex problems for the economy and it drags the economy further away from growth. This is especially in the case of under developed economies as they are worse-off by such a situation. On the other hand, developed countries do have a cushion against such problems and endure the effects by strictly controlling the inflation through monetary policy. In case of developing economies, they have lesser reserves to back their position, while being more productive they still run continuous deficits (Charles, 1995). This invokes further activity, owing to the fact that the economy is below its potential output but usually is not managed adequately and thus results in demand pull or cost push inflation in different circumstances and hence these developing countries are seldom able to reap the benefits of their economic activity. The budget deficits are rooted from the time of the great depression of 1930s which was witnessed by and had strong influence on many economies worldwide before the Second World War though there were numerous reasons for the Great Depression beginning in 1929, including not only the structural weaknesses but also a series of certain other events. The declining demand in the economy laid down pressures on government and whilst they had to manage the decline in economic activity, the government expenditures eventually increased to accommodate these problems thus putting burdens over the budgets and eventually running deficits (Bernanke, 2007). Another reason stated had been the decline in international trade thus affecting many countries of the world whose economy depended on the international transactions. As stated by one of the famous analysts, the chain of events proceeded as follows (Fisher, 1933): Thus when the free hand didn’t work out, government started to play a pivotal role in the economic activity for the

Immigration and unemployment in canada Term Paper

Immigration and unemployment in canada - Term Paper Example he above figure shows that although Canada has been accommodating immigrants since the late 19th century, yet the number has drastically increased after the mid of the 20th century, specifically in the last two decades. (www.immigrationwatchcanada.org, 200-) mentioned in the same report that recent surveys have discovered that over 2 millions of Canadians are unemployed. The point of consideration is â€Å"if the increasing number of immigrants has influenced the number of employment opportunities for the native Canadians.† There are various factors that play their role in linking immigration and employment status in Canada. Canada is spread on a large piece of land, naturally enriched with natural resources. On the contrary, the low fertility rate of Canadian natives is not compatible with the number of workers required for the establishment and development of industries needed to make use of Canada’s natural resources for the well-being of the country. It is this characteristic feature of the Canadian culture that necessitates the influx of immigrants to overcome the deficiency of skilled workers in order to ensure economic growth and development of the country. This, undoubtedly ma y cause an apparent job-deficit for the native Canadians, yet the practice is likely to bear fruitful results in the long run as a result of a development in the industries followed by increased GDPs in the years to come. Also, the benefits of immigration outweigh the harms it may cause to the native Canadians in that the development in business results in increased facilities in no time and a better life-style for the Canadians to enjoy. Besides, Canadian policies tend to eliminate fears of economic drawback on the part of the native Canadians by creating a difference between the wages of a native and an immigrant working parallel to each other in terms of skill and position. Canadian policies tend to adopt a biased approach when setting wages in favor of the natives, who get higher