Question 1:__________________________________________________________________________ There are many key issues pressing on Canadians for a wide variety of reasons. One of the largest and most debated issues is the Canadian Healthcare system. The main concerns of both the government and the people are the extraordinary costs that are required by tax payers to maintain the system. Another concern is the long wait times required by patients due to the ease of access to healthcare. I have some suggestions to not only save money, but also to reduce wait times. My first suggestion is to increase the budget for homecare and senior care. Senior citizens make up a very large portion of healthcare patients. Increasing financial support of homecare could reduce the number of hospitalized seniors by providing in home support in the form of Personal Support Workers, Registered Practical Nurse’s, Registered Nurse’s and visiting doctors. The average cost of a hospitalization for one day is $7,000. By providing visiting nursing/ doctors we could reduce that cost to $25-$500 per day depending on the care needed. A second suggestion would be to introduce the very much debated 2-tier system (allowing private hospitals, in addition to the public hospitals currently in place). By introducing this system, all patients would benefit. Patients with the financial means, or benefits have the option to seek out private care, reducing the wait times and costs.

Another key concern is the growing costs of social welfare systems, like Ontario Works, Unemployment Insurance, and Disability Programs. My suggestion to help relieve the pressure caused by the enormous cost of these programs is to change the overall goal of the programs. Currently the goal of the programs is to support people who cannot support themselves. Unfortunately this is often taken advantage of and over used. I would suggest reducing the number of citizens on welfare and disability by focusing the support on how to get them back into the workforce. I feel that drug testing should be a necessary requirement to receive benefits as well as mandatory job placements. I suggest that we find employers willing to hire these people by offering employers discounts on their taxes. This would most certainly entice businesses to hire someone out of the welfare or disability pool.

The cost of prisons and court proceedings are another major key social problem in Canada. I do not feel that reducing prison sentences for violent and sexual offenders should be an option for reducing the costs, perhaps we can look into the reduction of sentencing for non-violent crimes. Another suggestion would be to put a heavier focus on crime prevention, public service, and government fines for crimes. Another debated solution would be to instil prison factories, where minimum security prisoners are given jobs at factories that might otherwise send their factories overseas for cheaper labour.

The last key social problem that I bring to your attention today is a much debated issue as well. I suggest that we consider the benefits of legalizing and taxing activities that are currently illegal in Canada, such as Marijuana, prostitution and gambling. Not only would the government raise much needed funds from the taxes imposed on these activities, but it would also help reduce the amount of money spent trying to enforce the laws against them. History has shown us that these activities are not going away, and that people will continue to participate in them regardless of the legality. So why not capitalize on it? We can instil laws to regulate legal public dispensaries, brothels and private gambling houses, much like we do for the sale of alcohol and tobacco.

Question 2:__________________________________________________________________________

The various market structures that exist within the economy are perfect competition, monopolistic competition, oligopoly and monopoly. Price and quantity are determined in a perfect competition by the forces of supply and demand. While monopolistic competition determines price and quantity by comparing their product to others, and seeing what they are able to sell them for. A monopoly has the ability to set its own price, as it does not have any competitors. In an oligopoly, multiple competitors work together to determine selling price. The industry that Canadian consumers are better off with is a perfect competition, as products are sold at an equal and fair price to other products. I do not prefer one industry over another, as I feel that it requires a combination of market structures to make a strong economy. I feel that in order for our economy to remain strong, it needs to cater to both consumers and owners.

Canada’s telecommunication industry would be classified as an oligopoly. There are few competitors to choose from, and they work together to choose the prices and to put up barriers to keep out new competitors. Bell Canada (including its subsidiaries: Bell Aliant, Northwestel, NorthernTel Solo, Sympatico and Virgin Mobile) and Rogers (Including: Fido, Chatr, and outsourcing to TekSavvy) are Canada’s two largest telecommunications industries.

Rogers Communications reported profits of 12.7 billion dollars in income for 2013, and Bell Canada reported 20.4 billion in profits for 2013. Given the current market structure and recent changes to Canada’s telecommunications laws by the CRTC, I do not feel that it is possible for these companies to maintain their high profits. The CRTC has ruled on limits to contracts, limiting complicated contracts, limits on data charges, and roaming. The government has also taken to auctioning off broadcasting and wireless rights to smaller and foreign firms. Although Canada’s telecommunications oligopoly was successful at keeping out American company Verizon last year, they will not be able to keep it up forever. Canadians pay the highest wireless fees in the developed world and are eager to move to a company who will offer them fair prices, even if the company is foreign run. Typically, oligopolies are able to maintain their profits long run, by using barriers to restrict new companies from entering the market place. If it wasn’t for the recent government interference, I believe that Bell, Rogers and Telus could probably have continued to earn such high revenues.

I would have to say that I definitely agree that Canadian consumers benefit from having the government step in and break up the market power of these oligopolies because it forces Bell and Rogers to become more competitive, and forces prices down. Factors that make breaking up Rogers and Bell into smaller more competitive firms would be that they own equipment that is necessary for telecommunications; therefore it is difficult to force them to sell off rights of use to another company. For example, Bell Canada owns the phone lines, pretty much throughout Canada. Any other company that wants to use them needs to pay for the rights from Bell. Likewise, Rogers owns the majority of the cable TV lines, and other companies must purchase the rights to it. So even if you switch from Bell to Shaw, or Rogers to TekSavvy, your money still ends up in the same place.

If we were to successfully breakup this market we could have more of a perfect competition (or as close as it really gets) in the telecommunications industry. The average household spends approximately $350 a month on these services. That’s a very high number compared to the rest of the world. By forcing competition in the marketplace, we are essentially forcing competitive pricing, and therefore we would be better off as a society.

Question 3:__________________________________________________________________________

Canada's oil sands industry is one that has been hotly debated in recent years. From job opportunities to environmental impact, it seems that both sides know their worth. Often the question is asked, what do the numbers say?

Let's start by looking at jobs. In Canada, the oil sands industry currently employs roughly 112,000 people across the country, affecting six different industries and employing aboriginals in almost 10% of their workforce. The oil sands have also demonstrated themselves to be an excellent source of economic activity. A third of all the economic activity generated from Canadian oil sands activity is generated outside of the main Alberta area. With a 1 to 8 return rate, the oil sands have proved to be a good investment in Canada and around the world. Looking to the future, according to the Conference of Canada Report 2012 - Fuel for Thought, between 2012 and 2035 investments related to the oil sands industry is expected to generate almost $80 billion for both the federal and provincial governments.

The oil sands initiative often comes under negative media attention due to the harmful impact that is believed it has on the environment. However, Alberta and Canada as a whole do not take the rising concerns regarding the environment lightly. Environment and Sustainable Resource Development Minister Robin Campbell released the following statement:
“The Canadian economy is driven by the natural resource sector in Alberta. It provides jobs and opportunities for communities and families across the country. “The Government of Alberta has a strong regulatory system in place that protects the environment along with the health and safety of Albertans. Our government takes this responsibility seriously and companies that do not meet these standards will be held accountable."

However, no matter what the good intentions, when you look at the actual process of what must actually happen prior to mining the oil sands, the situation is not so black and white. Alberta is a rich, lush and beautiful part of our country. Much of where the oil sands are located are currently occupied by thick forest. To get to the oil sands, everything above it must be removed. From trees and topsoil, to muskeg, sand, etc. While the topsoil and muskeg are replaced when the mining is complete, and the developer of the mine is required to return the land to its original state, one must ask themselves how much damage is already done. Wildlife would have vacated and would take extended periods of time to return as well as the deep and rich root system of the forest would have to start again.

The balance it seems comes from the fact that this economic value is causing an economic impact; the oil sands industry is putting its resources towards reducing its environmental impact. As the mining of the oil sands creates the emission of carbon dioxide, the industry has reduced them by 45% per barrel between 1990 and 2010.

It's a hard decision when looking at the broad strokes of economic benefit versus environmental damage that the Canadian oil sands industry seems to convey. However, while it can be hard to make a blanket statement of disbanding a resource that has proven to have such a high economic worth, it is crucial that the environment and its sustainability remain at the forefront of everyone's mind. I agree that the mining of the oil sands has remained a profitable industry in Canada, creating thousands of jobs across the country in a time of economic decline. I also believe that as a result of the detrimental effects to the environment, it has led us to focus harder on making advancements on how to mine, refine and use crude oil. Without the problem, we would be unable to find the solution. I believe that the "compromise" would be to only allow the oil sand to expand as the advancements are made to protect the environment.

Works Cited http://oilsands.alberta.ca/economicinvestment.html http://www.energy.alberta.ca/oilsands/791.asp - Alberta Energy
Fuel for Thought) https://albertacanada.com/files/albertacanada/AOSID_QuarterlyUpdate_Spring2014.pdf http://www.energy.alberta.ca/OilSands/792.asp http://www.energy.alberta.ca/OilSands/792.asp Question 4:__________________________________________________________________________

A positive externality is the benefit received by a third-party, or an entity that is not directly involved in the economic activity. This benefit is referred to as a "spillover activity" since these benefits are not included in the actual economic benefit. Some examples or policies that can create a positive spillover are; vaccinations (while protecting against the virus itself, it also helps prevent the spread of the virus) , wind power (while providing energy, it also provides less pollutants than regular energy sources) or Canadian Broadcasting (while providing an outlet of information and programming, it provides an inherently Canadian perspective).

Question 5:__________________________________________________________________________

Income inequality is the range to which income is distributed unevenly in a country. High inequality can reduce economic growth, meaning that the country is not fully using the proficiencies of all its citizens. It also leads to increased social tensions causing an issue about fairness and social justice. Income inequality in Canada is a growing concern, with Canada experiencing the second largest increase in inequality among all other countries between the mid-1990’s and the mid-2000’s. Canada has a progressive taxation system, which means the more you make the more taxes you pay. This marginal taxation needs to be examined as it has declined. Some economists argue that the gap between the rich and the poor is not a concern, as everyone has an opportunity to increase their wealth with hard work and motivation.

To measure inequality we use the Gini index. This index calculates the distribution of income and how it deviates from an exactly equal distribution. It’s a scale of 0 to 1, with 0 representing a perfectly equal distribution, and 1 representing inequality as if one person has all the income and the rest have none.

The following is a graph of the shifting of inequality in Canada from 1976 to 2009.

So the question is, why is inequality rising? I came across a great example that explains why these measurements of inequality can be flawed. If there’s a group of people making $25,000 in a room, then the Gini index for the group would be 0. Now if Warren Buffet were to walk in to the room, this one person who makes billions, would cause the index to become unequal. I feel that if you were to remove the top one percent from the equation, then the issue of inequality is not as great as one first observes. The rich are definitely getting richer but this does not mean the poor are getting poorer? Below are two charts representing the top 20% and the bottom 20%. As you can see the rich is on a steady incline, while the poor fluctuates more, it is also on an incline.

Many suggest that collecting more taxes from the wealthier will help bridge the gap. The extra financing would be distributed across social assistance programs that are already in place such as, employment insurance, a federal minimum wage, and funding for affordable housing programs. I believe there are a few more solutions.

To eliminate income inequality, the most widely suggested solution is to increase the amount of taxes that the wealthy pay. Our top marginal tax rates have declined leading to them contributing less and thus becoming wealthier. We also need to focus on those that cheat the system through loopholes. There are many who transfer funds to other countries with lower taxes, as well as many small business owners and landlords who receive their income in the form of cash and never claim this income. These unclaimed funds, if claimed, would raise the amount of taxes collected.

Education has always been important, but focusing on our ever changing economy may need to cause a shift in the way things are done. Skill trades, such as electricians and plumbers are not a favourable career choice among our youth but this is something that should be encouraged. Germany has adopted a dual vocational training system that has seen great results. It involves schooling along with apprenticeships. This type of education leads to an occupational certificate, work experience, and creates a relationship within the workforce making job prospects greater. Germany has seen the rate for unemployed youths decline due to this system.

There are many that use the social assistance programs that our government provides. There are abusers of these systems and I believe that this should be dealt with. I have witnessed many people on assistance programs that can afford to have the newest technology and spend money on drugs and alcohol. I believe that these people need to be investigated on a regular basis to confirm that their conditions and abilities are still the same as when they entered the program. Regular drug testing would benefit these programs, as it would stop funding for these abusers and also provide those help. It has been shown that children that grow up in a household where their guardians manipulate these programs, they too will rely on these programs to get by. There are many who do use these programs to help in times of need, and when capable, will return to the workforce. If we eliminate the abusers, it will open up funding for those in genuine need.

Works Cited
Grant, Tavia. The Globe and Mail. 13 January 2014. 2 July 2014 <http://www.theglobeandmail.com/news/national/time-to-lead/how-should-canada-solve-income-inequality/article15574730/>.

Lynch, Kevin G. The Globe and Mail. 13 January 2014. 2 July 2014 <http://www.theglobeandmail.com/news/national/time-to-lead/canada-needs-to-improve-access-to-trades-training/article15357614/>.

The Conference Board of Canada. n.d. 2 July 2014 <http://www.conferenceboard.ca/hcp/hot-topics/caninequality.aspx>.

Walks, Alan. University of Toronto. August 2013. 1 July 2014 <www.citiescentre.utoronto.ca/Assets/Cities+Centre+2013+Digital+Assets/Cities+Centre/Cities+Centre+Digital+Assets/pdfs/publications/Research+Papers/227+Walks+Income+Inequality+Canada+Aug+2013_2.pdf.>.

Wu, Michael. Lithium. 14 September 2012. 2 July 2014 <http://community.lithium.com/t5/Science-of-Social-blog/The-Economics-of-90-9-1-The-Gini-Coefficient-with-Cross/ba-p/5466>.

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[ 1 ]. http://oilsands.alberta.ca/economicinvestment.html
[ 2 ]. http://www.energy.alberta.ca/oilsands/791.asp - Alberta Energy
[ 3 ]. Fuel for Thought)
[ 4 ]. https://albertacanada.com/files/albertacanada/AOSID_QuarterlyUpdate_Spring2014.pdf
[ 5 ]. http://www.energy.alberta.ca/OilSands/792.asp
[ 6 ]. http://www.energy.alberta.ca/OilSands/792.asp