Chapter 16 Blog
Summary
With the economy declining, many jobs are being taken away, leaving many citizens unemployed. In December 2008, the number of Canadians receiving Employment Insurance benefits rose 16.2%, compared to December 2007. There could be more unemployment coming in our future. Most of the jobs lost were full time positions, causing more and more people to rely on Employment Insurance. Even though the percentage seems quite high, “Canada is coming out of a period of near-record-low employment.” (Mr.Shenfeld) This increase of unemployment falls nationwide, with British Columbia ranking first with the most increase of Employment Insurance recipients.
Connection
In the article it talks about how more and more people are claiming their Employment Insurance benefits. Employment Insurance is the connection to Chapter 16. Canadian employees all have to contribute a portion of their earnings towards their Employment Insurance fund. This deduction is made on every paycheque they make. This fund is only available when the person is unemployed. They have to be willing and be able to accept employment, then that person is entitled to receive Employment Insurance benefit. The unemployed person will then receive a bi-weekly payment every month until they have a job again.
Reflection
Even though it’s expected that many jobs will be lost, people will be unemployed through the economic crisis, I never imagined the increase would be so extreme. I’m also glad there is an Employment Insurance fund because if there was never one, and so many are unemployed now, many people will be having really hard times to get through their life. I think the government should work on a project to keep prevent more layoffs, or to provide more job opportunities. It is very hard to find jobs now and people’s fund won’t be able to last them that long unless they have been working for years.
http://www.nationalpost.com/story.html?id=1323500
Wednesday, March 11, 2009
Tuesday, March 3, 2009
Small business owners falling through credit cracks
Summary
Here, in the article, it talks about how our Canadian government is dealing with the loans for many small business entrepreneurs. Many small business owners rely on loans to sustain the company. Now that the world’s economy is plunging, many companies are suffering, and losing their jobs. A situation is shown regarding an entrepreneur, Mr. Abbott, of a logging business. With the economic downturn, Mr. Abbott won’t be receiving much business until summer, meaning he won’t be able to pay his government-backed loan. He asked his bank if he could repay the loan just a few months later, but the government refused.
Connection
This relates to Chapter 15 indirectly. In 15.1, the textbook talks about the people who look use the financial statements, and why. Insiders and outsiders read the financial statement to determine if the business will be able to repay the loan. Two aspects would be looking at their profitability; and their worth and marketability of assets. In the situation in our article, the bank must have looked at Mr. Abbott’s assets before issuing the loan. Now that Mr Abbott will be having trouble to pay back the loan, the bank will have to take his assets, his truck.
Reflection
With the global economy falling, I think that the banks and government should go easier on small business loans. The banks should know with such bad factors now a day, it is definitely hard for small businesses to make a profit. For Mr. Abbott’s case, I think they should have just agreed to let Mr. Abbott pay the interests still, but lay off the actual monthly payments for a few more months. The bank and government has enough money already, so receiving fewer payments wouldn’t affect much. I believe that the government should put some effort into creating a solution for this credit crisis.
http://www.nationalpost.com/news/canada/story.html?id=1343244
Here, in the article, it talks about how our Canadian government is dealing with the loans for many small business entrepreneurs. Many small business owners rely on loans to sustain the company. Now that the world’s economy is plunging, many companies are suffering, and losing their jobs. A situation is shown regarding an entrepreneur, Mr. Abbott, of a logging business. With the economic downturn, Mr. Abbott won’t be receiving much business until summer, meaning he won’t be able to pay his government-backed loan. He asked his bank if he could repay the loan just a few months later, but the government refused.
Connection
This relates to Chapter 15 indirectly. In 15.1, the textbook talks about the people who look use the financial statements, and why. Insiders and outsiders read the financial statement to determine if the business will be able to repay the loan. Two aspects would be looking at their profitability; and their worth and marketability of assets. In the situation in our article, the bank must have looked at Mr. Abbott’s assets before issuing the loan. Now that Mr Abbott will be having trouble to pay back the loan, the bank will have to take his assets, his truck.
Reflection
With the global economy falling, I think that the banks and government should go easier on small business loans. The banks should know with such bad factors now a day, it is definitely hard for small businesses to make a profit. For Mr. Abbott’s case, I think they should have just agreed to let Mr. Abbott pay the interests still, but lay off the actual monthly payments for a few more months. The bank and government has enough money already, so receiving fewer payments wouldn’t affect much. I believe that the government should put some effort into creating a solution for this credit crisis.
http://www.nationalpost.com/news/canada/story.html?id=1343244
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