Log in

View Full Version : US and Canada economy



spice756
5th October 2009, 02:08
I have been looking at wikipedia on this and trying to get idea.

I'm trying get idea of economy ,poverty, income ,low income, no job in both countries.



Canada is one of the world's wealthiest nations, with a high per capita income,


What does this mean? Does that mean people are rich or the country is rich?



and is a member of the Organisation for Economic Co-operation and Development (OECD) and the G8. It is one of the world's top ten trading nations.[136] Canada is a mixed market,[137] ranking lower than the U.S. but higher than most western European nations on the Heritage Foundation's index of economic freedom.[138]


And what does this mean how free the market is from goverment control?




Since the early 1990s, the Canadian economy has been growing rapidly, with low unemployment and large government surpluses on the federal level.


Than why the tax cuts and cuts to social programs in the 90's ?



Today, Canada resembles the U.S. in its market-oriented economic system, pattern of production, and high living standards.[7]


What is market-oriented economic ?


As of February 2009, Canada's national unemployment rate was 7.77%. Provincial unemployment rates vary from a low of 3.6% in Alberta to a high of 14.6% in Newfoundland and Labrador.[139] According to the Forbes Global 2000 list of the world's largest companies in 2008, Canada had 69 companies in the list, ranking 5th next to France.[140]

What about people living with mom or dad does and no job does that count has unemployment and poverty?




As of 2008, Canada’s total government debt burden is the lowest in the G8. The OECD projects that Canada's net debt-to-GDP ratio will decline to 19.5% in 2009, less than half of the projected average of 51.9% for all G8 countries. According to these projections, Canada's debt burden will have fallen over 50 percentage points from the peak in 1995, when it was the second highest in the G8.[141]


This does not say the GDP and wages are up and cut in tax and social programs . And people in Europe pay more tax but have more social programs.



In the past century, the growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. As with other first world nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians.[142] However, Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important.


Does not say the poverty or income.





According to the United States Census Bureau, the pretax median household income in 2007 was $50,233. The median ranged from $68,080 in Maryland to $36,338 in Mississippi.[58] Using purchasing power parity exchange rates, the overall median is similar to the most affluent cluster of developed nations.








After declining sharply during the middle of the 20th century, poverty rates have plateaued since the early 1970s, with 11–15% of Americans below the poverty line every year, and 58.5% spending at least one year in poverty between the ages of 25 and 75.[83][84] In 2007, 37.3 million Americans lived in poverty.[58]


What does United States Census define has poverty? I hear that United States Census manipulates the poverty ,low income and make it sound like it not so bad.

A 11 to 15% in poverty :( well most tell me it more close to 20 to 25 % but States Census manipulates the data.

Well pay check to pay check in small 1 story home or trailor park is not povert? What is poverty no food ,water or home? What about people that are not dirt poor but are still not middle class?





The U.S. welfare state is now among the most austere in the developed world, reducing both relative poverty and absolute poverty by considerably less than the mean for rich nations.[85][86] While the American welfare state does well in reducing poverty among the elderly,[87] the young receive relatively little assistance.[88] A 2007 UNICEF study of children's well-being in twenty-one industrialized nations ranked the United States next to last.[89]


You saying the US welfare state better than other countries?





Despite strong increases in productivity, low unemployment, and low inflation, income gains since 1980 have been slower than in previous decades, less widely shared, and accompanied by increased economic insecurity.



That does not say some places may have high unemployment not like Canada.




Between 1947 and 1979, real median income rose by over 80% for all classes, with the incomes of poor Americans rising faster than those of the rich.[90][91] Median household income has increased for all classes since 1980,[92] largely owing to more dual-earner households, the closing of the gender gap, and longer work hours, but growth has been slower and strongly tilted toward the very top (see graph).[85][90][93]


Than why is it most girls I know make less than what guys make?




Consequently, the share of income of the top 1%—21.8% of total reported income in 2005—has more than doubled since 1980,[94] leaving the United States with the greatest income inequality among developed nations.[85][95] The top 1% pays 27.6% of all federal taxes; the top 10% pays 54.7%.[96] Wealth, like income, is highly concentrated: The richest 10% of the adult population possesses 69.8% of the country's household wealth, the second-highest share among developed nations.[97] The top 1% possesses 33.4% of net wealth.[98]

Still does not really explain the poverty ,income and economy in the US and Canada ..

spice756
17th October 2009, 23:08
Very interesting the dollor is so high in Canada with the recession going on. Very strange .



C$ hits 1-year high; focus turns to jobs data


TORONTO (Reuters) - Canada's dollar zoomed to a one-year high against the U.S. currency on Thursday as commodity and equity prices rose on upbeat economic data that lifted optimism for recovery and whetted the market's appetite for risk.

The currency raced as high as C$1.0506 to the U.S. dollar, or 95.18 U.S. cents, its highest level since September 30, 2008. The underlying catalyst on Thursday was Australian employment data that rose past expectations.
"That sentiment was carried through to North America," said Brendan McGrath, senior trader at Custom House.

"It's positive sentiment. Risk is back in the market again today. As a result, commodities are up, equities are up and you can bet when that happens the Canadian dollar will be (up) too."

That news followed the Reserve Bank of Australia's interest-rate increase earlier this week, which made it the first G20 central bank to raise rates following the wave of rate cuts that accompanied the onset of the recession. The market took this as a sign of improved economic conditions, and the move sparked speculation about which central bank would be next in line.

"We obviously don't think that the Bank of Canada is moving on rates any time soon but it does show that central banks are starting to get back into that tightening mode and reaffirms the improved risk appetite," said Shane Enright, executive director, foreign exchange sales at CIBC World Markets.

Helping drive Canada's currency higher was a rise in oil prices above $71 a barrel and soaring gold prices, which hit a record high for a third successive session, climbing above $1,060 an ounce.
The Canadian dollar finished at C$1.0522 to the U.S. dollar, or 95.04 U.S. cents, up from C$1.0624 to the U.S. dollar, or 94.13 U.S. cents, at Wednesday's close.

The upbeat tone was supported by U.S. jobs data that suggested stabilization in the labor market and helped to boost North American stock markets.

Markets are awaiting Friday's September jobs data, with the report expected to show the Canadian economy created 5,000 jobs in September.

Experts said the report could be a major mover for the Canadian currency. If the numbers prove to be better than expected, the Canadian dollar could continue its ascent and pierce the C$1.0500 level.
BOND PRICES LOWER
Canadian bond prices were lower across the curve alongside the bigger U.S. Treasury market, which turned negative after a poorly received 30-year bond auction, stoking concerns about waning appetite for big government issues.

The market will shift its focus to Friday's jobs numbers, though activity is expected to muted due to the long weekend, said Sheldon Dong, fixed income analyst at TD Waterhouse Private Investment. Monday is Thanksgiving Day in Canada.
The two-year bond fell 17 Canadian cents to C$99.49 to yield 1.496 percent, while the 10-year bond sank 70 Canadian cents to C$103.15 to yield 3.364 percent.

The Canadian market notched a mixed performance against U.S. Treasuries, with the 10-year Canadian yield about 11 basis points above the U.S., up from around nine basis points on Wednesday. The 30-year Canadian yield was about 19 basis points below the U.S., against 16.3 basis points below on Wednesday.


http://ca.news.finance.yahoo.com/s/08102009/6/finance-c-hits-1-year-high-focus-turns-jobs-data.html

Demogorgon
17th October 2009, 23:45
Some of this is incorrect and probably written by market evangelists, but I will try to answer your questions.
I have been looking at wikipedia on this and trying to get idea.

I'm trying get idea of economy ,poverty, income ,low income, no job in both countries.



What does this mean? Does that mean people are rich or the country is rich?

It means the people have a high level of income (per capita means per person), but it is a useless measure because it measures mean and not median. If you have a hundred people, ninety nine earning one dollar and one a billion dollars, then per capita income is just over ten million dollars, yet 99% are actually earning only one dollar.

A very extreme example, but it indicates the problem.


And what does this mean how free the market is from goverment control?

It refers to regulation and size of the public sector, but it is pretty useless because in reality it only measures size of the public sector and largely ignores regulation. The US for instance has a smaller public sector than most of Europe, but more regulation.


Than why the tax cuts and cuts to social programs in the 90's ?
Because that was the height of post-Thatcherite dogma. Remember, a budget surplus simply means the population is being taxed more than the Government is spending on them, it is only a good thing if the Government is choked by debt (because in the long run it will mean tax cuts and spending rises). The general worship of it, is a fairly curious thing.


What is market-oriented economic ?

A rather loose term. It is really just a form of rhetoric actually.


What about people living with mom or dad does and no job does that count has unemployment and poverty?

I'm not sure what you mean here. At any rate though, unemployment is the percentage of the working population out of work. (people between between starting work and retirement age, usually 16-65 or thereabouts, not in full time education, unable to work due to ill health or otherwise not seeking employment-housewives, living off relatives and so on).

Poverty is defined differently. Absolute poverty is usually inability to afford essentials whereas relative poverty is defined differently. In Britain it is earning less than 60% of median income.

Also note by those figures that Canada has quite high unemployment.


This does not say the GDP and wages are up and cut in tax and social programs . And people in Europe pay more tax but have more social programs.

No, it just says low Government debt.



What does United States Census define has poverty? I hear that United States Census manipulates the poverty ,low income and make it sound like it not so bad.

A 11 to 15% in poverty :( well most tell me it more close to 20 to 25 % but States Census manipulates the data.

Well pay check to pay check in small 1 story home or trailor park is not povert? What is poverty no food ,water or home? What about people that are not dirt poor but are still not middle class?

The US defines poverty quite narrowly, that is true.

Using consistent methodology, it has one of the highest poverty rates in the Western world, so bare that in mind when checking whether poverty rates are manipulated or not.


You saying the US welfare state better than other countries?

No, it says it has largely failed. Basically it says the US provides reasonable social services for the elderly, but is otherwise extremely weak, particularly with regards to children.



Than why is it most girls I know make less than what guys make?

Because there is still a gender gap. I think that statement is fair actually, there is a lower gender gap than there used to be, but it still exists.

spice756
18th October 2009, 00:04
Because that was the height of post-Thatcherite dogma. Remember, a budget surplus simply means the population is being taxed more than the Government is spending on them, it is only a good thing if the Government is choked by debt (because in the long run it will mean tax cuts and spending rises). The general worship of it, is a fairly curious thing.


Can you explain more about this.

Demogorgon
18th October 2009, 00:15
Can you explain more about this.
A Government can run a budget surplus, a budget deficit or a balanced budget. A balanced budget is where it takes in the same amount in taxes and other revenue as it spends. A deficit is when it spends more than it is taking in and a surplus is where it spends less than it is taking in.

When it runs a deficit. it can makeup a shortfall by borrowing money and when it runs a surplus, it can use a surplus to pay off the debt or alternatively to save money for future need.

Sometimes it is necessary to run a deficit-when the economy is in recession for instance, it is needed to stimulate aggregate demand. Other times it is necessary to run a surplus-if there is a lot of inflation, it is a good way to remove the excess money from the economy and also of course surpluses are how you reduce the Government's debt.

Of course, remember that when the Government is running a surplus, it means it is taking more of our money than we are getting back and so we should ask "is this necessary?"

spice756
18th October 2009, 00:54
It seems Canada is doing better than the US for some strange reason.



Average Canadian home prices up slightly, says Royal LePage survey

TORONTO - The housing market may be recovering, but is experiencing an undersupply of homes for sale in southern Ontario and elsewhere in Canada.

That's according to the latest house price survey by Royal LePage. It says with the recession retreating, home prices are stabilizing and unit sales are increasingly driven by improved affordability.

Royal LePage says the average price of a two storey home in Canada is up just 0.1 per cent from a year ago at $409,335.

Average bungalow values grew 0.06 per cent year-over-year to $341,146, while the price of an average condo increased 0.09 per cent to $243,748.
Royal LePage says a shortage in housing supply is leading to bidding wars in several cities, including Toronto, Montreal, St. John's, N.L.; St. John, N.B. Moncton, Edmonton, Calgary, North and West Vancouver, and Victoria.

While the Atlantic provinces saw a strong recovery in home prices, western provinces have been slower to recover from significant price corrections in 2008, particularly in British Columbia and Alberta.
Ontario and Quebec saw home prices stabilize or gain slightly year-over-year with much of the recovery occurring in a strong third quarter



http://ca.news.finance.yahoo.com/s/08102009/2/biz-finance-average-canadian-home-prices-slightly-says-royal-lepage.html

spice756
25th October 2009, 20:24
With the housing market doing well in Canada and the dollar going up it seems the economy is doing better than the US.