Fiscal Policy Explained by Ismail P by Guess Who https://padlet.com/osmosm/50yoyo1bj4ip A deep look into Canada's fiscal policy and what it means for Canadains en-us 2017-04-03 02:24:30 UTC 2023-02-28 23:22:43 UTC hello@padlet.com Synopsis: Hi all! osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164219518 Welcome all, thank you for visiting my padlet. here you  will learn about fiscal policy, how it works, what it is, and the importance of fiscal policy in an every changing economy and  why Canada has got it all wrong.]]> 2017-04-03 02:30:59 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164219518 Video 1 : What is Fiscal Policy? osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220239  
 In a nutshell, fiscal policy is a method by which the government taxes and spends on its citizens. It is easier said than done, many complications arise because to see improvements in increased or decreased levels of spending can take years for the effects of the benefits to trickle down. 
There are two types of policy expansionary fiscal policy, in which government tries to grow the economy in times of economic depression and contractionary fiscal policy by which the government tries to reduce spending and increase taxes in a robust economy or when an inflationary gap is present. 
There are three concepts to the theory taxes, spending and transfer payments. Taxes are a way for government to raise the funds needed to fund the public sector. Many types of taxes including but not limited to; income tax, government sales tax, corporate tax, and excise tax. Spending occurs either through the funds raised from the taxes or through financing and burrowing. And finally, transfer payments in which government transfers money to five main categories, the largest being to persons, elderly transfer payments, EI payments, and Child care benefits, Canada social, equalization programs and other. 
]]> 2017-04-03 02:41:00 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220239 Video 2 : The power of the Canadian economy or the lack of? osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220529
Canada has a robust economy due to its sound fiscal and monetary policies. It is one of the fastest growing G8 countries. A major portion of government spending, consists of government purchases. The government buys facilities, has crown corporations like Canada Post, and buys from the private sector for its military needs, highway construction, and many services. Reducing government purchases is a very tough process in which many public sector employees get upset so government tries to tweak the taxes in many polices rather than reduce government purchases. 

]]> 2017-04-03 02:44:49 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220529 Video 3 : Spend now Pay later! osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220538
Keynesian economics play a vital role in government policies. Kane believed that government spending to stimulate the economy and to make up for reduced spending in the private sector was the fastest most efficient way for government to go about. All though this works in the short run it poses a great problem, he said everybody that benefits will be dead, in other words to eat the food and leave the bill for the next guest waiting to eat. During the recession of 2008 and 2009, government greatly reduce taxes and increases spending to put people and idle machinery back to work. 
]]> 2017-04-03 02:44:59 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220538 Link 1 : Budget 2016 osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220559 The liberal government is running budget deficits for the next four years and plans to run budget deficits, far into the future. This is great, the people living now will experience the benefits, but with every experience is a cost and the next generation will be on the hook for such extravagant expenses. Politics and money seem to work well and behind all the smoke there is nothing. The liberal government has ambitious plans to increase infrastructure spending, increase transfer payments, purchase new aircrafts, introduce new arts programs, and spend in goodwill on other impoverished nation. In 2015, 2016 the conservative government finally balanced the budget, but because they did not increase spending they did not come to power. The budget has no plans to balance the books in the near future and start paying some of the debt. ]]> 2017-04-03 02:45:16 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220559 Link 2 : Growth Vs. Stability osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220571 To have a stable economy, rather than an economy in which one year it is expanding and the next two years it is contracting, is essential. Growth is great but when the economy starts to grow at a rate unphatomed, for instance before 1929 Stock market crash most sectors where experiencing growth, and spending and burrowing and financing to cash in on the market. Growth is great but it can only last a certain period, after which the economy shrinks again and many people are not ready for it, from a growing economy into a recession the effects are sometimes worse. Governments try to mitigate these issues by forecasting and having long term polices that will try to stabilize markets.  ]]> 2017-04-03 02:45:22 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220571 Link 3 : The Grave Mistake osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220594 Master plan the liberals are playing right now will be catastrophic for Canadians in the future, if you look at history the Liberal government has always spent money and run deficits year over year, the conservative government has to fix the excessive spending made by the liberals so they can at least balance the books.  When the government tries to claw back some of the benefits or stop increased spending there is an uproar in Canada. At the micro level, for instance, the conservative government in 2015 decided to not give pay increases for the teachers and hold pay constant for two years. Two years prior to that when the teachers got an excessive pay increase there were no complaints. The government was not reducing the pay but just limiting the increase in pay for a few years and the teachers threatened to walk out and not conduct any extracurricular activities, they went to the extent of not writing notes on report cards. The cost of such lavish spending carries great burden.   ]]> 2017-04-03 02:45:41 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220594 Image 1 : At the brink of extinction osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220612
When we compare debt we compare our debt to the U.S debt, so we can feel good about our debt, we fail to realize the magnitude of the American economy and that they could essentially wipe out their debt with the strike of a pen. The U.S dollar is a universal currency giving the U.S special powers that we don’t have. Our debt is important and affects all Canadians greatly. At one point in time we had the opportunity of paying off all of our debt but we choose to pay interest to the parties that invested in Canada. Close to 37 billion dollars are spent yearly on interest payments! On what? Debt! We have nearly combined federal and provincial debt of 1.3 TRILLION dollars, and Ontario has the largest non-federal debt in the WORLD. Think we don’t have a problem? Think again, as more and more deficits are run year over year we will essentially be pay more interest from taxes and burrowing more money so we can make good and honour the creditors.   ]]> 2017-04-03 02:45:57 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220612 Image 2 : Anti-Competitive tax brackests osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220623 Many times government tries to tax their way through budget shortfalls. Canada has some of the highest income tax brackets in the world. We are anti-competitive when we land in the top 20 tax brackets when compared to the U.S our biggest competitor. A combined 54 percent for the highest bracket is astonishing. How does the Canadian government expect to keep money in the country when we have such excessive tax brackets? Money laundering, tax evasion and corruption ensues. We need to lower our income tax brackets if we want to grow the economy and attract new capital.  ]]> 2017-04-03 02:46:06 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220623 Image 3 : What is Striking? osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220640 As the Canadians age many more people will be getting old and retiring, 7.5 billion dollars were spent on social transfers, 27.9 billion on the elderly, and a whopping 15.2 billion on health transfer. Our healthcare system costs are increasing rapidly. Since the government has a very rigid policy on privatization the sector is very small. We need privatization of healthcare to bring down the cost of the system and overall reduced government spending in the sector.  ]]> 2017-04-03 02:46:17 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220640 Reflection: What have I learned ? osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220702 1. I was surprised to find that we were spending upwards of 30 billion in tax revenue just to pay interest in debt.
 
2. Fiscal policy affects me daily, both at the micro and macro level. As a beneficiary of “free healthcare” I feel good about not paying upfront for a surgery or going to see the doctor, but at the same time I realize that my future tax dollars will be going to pay for such services.
 
3. I found government spending very interesting. Debt correlates to Government spending, a few weeks ago when looking into debt I realized that it was a manmade problem, we try to tackle climate change and it is usually the center of the liberal agenda, but we never seem to talk about debt both personal if any and collective debt, we the people own the debt not the government. The magnitude of the debt is colossal yet we ask for more and more government services. Are we leaning towards communist practices or is the basis of the free market an underlying issue?
]]> 2017-04-03 02:47:06 UTC https://padlet.com/osmosm/50yoyo1bj4ip/wish/164220702 Last Words osmosm https://padlet.com/osmosm/50yoyo1bj4ip/wish/164221028 Thanks for visiting my Padlet , I hope you have learned the importance of Sound Fiscal Policy.  Mahatma Gandhi once said "Live as if you were to die tomorrow, learn as if you were to live forever".


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