Chapter 3: The Government in a Market Economy

Source:http://www.gmanews.tv/story/134349/Soft-drinks-makers-told-to-bear-impact-of-proposed-10-tax

Summary

In the months of going into recession, many governments in the world are thinking about ways to changing the economy from downfall. There is a main world supplier of soft drinks in Philippines and will experience effects of the recession. The Philippines government hopes to have a 10% excise tax on soft drinks to help the slow recessing economy. With this tax, the government hopes to have more revenue. However, economists and industry officials claim that this proposed excise tax would bring more negative than positive to the economy. Nevertheless, the government believes the price hike of soft drinks would not affect demand since most of the soft drink consumers are wealthy.

Connection

The link between this article and the second chapter of textbook is excise tax. Because the government is suffering the effect of the economic turmoil, they need to think of ways to have more revenue to help sustain the stability. Therefore, government officials thought of this idea of excise taxing on a particular commodity: soft drinks. The proposed excised tax on soft drinks would be a source of revenue for the government. Government officials say this is an act of rationalizing the excise tax on nonessential goods. Filipinos who oppose the tax believe the effect of an excise tax on a market would just move the lower the supply curve since it costs more for the supplier to make. Since the demand would be the same as government officials say, the demand curve is the same.

Reflection

I believe this tax levied on the soft drinks is not a good solution to help turn around the current economic crisis. By taxing the soft drinks, the prices would go up. Consequently, I am sure that there are many other alternatives in drinking other beverages than only soft drinks. There are many other milk and juice beverages; in addition, there is the popular common drink: apple juice. For me, I would buy different alternative beverages if there was a 10% hike on the soft drinks. The Philippine governments claim most of the soft drinks are consumed by the wealthy class. I believe this is not true since we all know that in the western countries, junk food is classified as a lower class meal. Water is more expensive than soft drinks. Overall, I do not think that this excise tax on soft drinks would not affect the economy much.

Chapter 2: Supply and Demand

Source: http://www.theguardian.pe.ca/index.cfm?sid=183650&sc=98


Summary

As the winter season closes in, the Prince Edward Island's residence has another thing to buy for icy weather: winter tires. Since in Quebec has passed a legislation ruling all drivers to have snow tires, there are going to be a shortage of tires. The new law is in effect from November 15 to April 15. The Quebec provincial government passed this law to decrease accidents because there were about 38% of winter accidents which drivers did not had snow tires on. Manufacturers are advising car owners to buy snow tires early since the stock is running out and might be sold out soon.

Connection

The link between this article and the second chapter of the textbook are supply and demand. Usually, Canadians across the country opt to have snow tire but there are few who choose to use all season tires. The demand of snow tires increased because the Quebec’s new provincial law mandating only snow tires in the winter season. Without a doubt, this triggers companies limiting supply to other provinces since there are likely more sales in Quebec than other provinces. This really affects other drivers in other provinces because in Canada everywhere is affected by the cold and icy season. In other provinces, motorist who wants snow tires for safety would have to order early before supply runs out.

Reflection

In my opinion, I support having a law to restrict drivers to drive with snow tires during the icy cold winter. By having snow tires, there are many drivers who were involved in accidents which can be prevented. By passing this law in Quebec, provinces like Ontario and Manitoba might also create similar legislation. However, this regulation might affect people who do not have enough money to buy snow tires. Some people might think that having old cars with new snow tires which costs over $200 for a set of four. If I had a car, I would definitely have snow tires during the winter season. It is safer to have those on. Safety is the most important in a car.

Chapter 1

The article http://ukpress.google.com/article/ALeqM5jZoRZo7OIXIGBkFuXpGXNjDKR7oQ

Summary

Being an environmentalist can be a positive thing. However, being uncontrollable to fight for the environment can cost your country about £6 million or approximately 11.3 million dollars in Canadian. The protestors at Camp for Climate Action held last month in Kent, England were controlled by 1400 police officers. A report was revealed that almost £6 million was paid for that protesting event. However, this cost might rise since many officers were paid overtime. The demonstration by the environmentalists was to close down a coal-fired power station that was opened for more than 30 years. At the end of the day, 100 people were arrested.

Connection

The links between this article and the first chapter of textbook are the direct cost and opportunity cost. Policing is funded by the citizens of England. The direct cost to the public is paying the police to control themselves or the protestors more specifically. Because of the demonstration, the public of England is paying from their pockets for the multi-million bill which 1400 officers were paid. Moreover, the direct cost may also be the embarrassment of the nation for losing £6 million to manage the public. The opportunity cost can be the public giving funds to environment researchers. Without a doubt, there are hundreds of environmental researchers who need funds to continue their research to make Earth a better and cleaner planet. Also, the £6 million could have been used to solve other environmental problems. Another important opportunity cost is that the police officers working at the demonstration could have been working on other cases or patrolling elsewhere. These police officers were deterred from other important tasks.

Reflection

I believe it is outrageous to have a demonstration by using force and breaking the laws. When a protest includes arrests, it is not acceptable. Without a doubt, this protest was not worth the £6 million. About 100 arrests were made. There are other ways to protest without creating chaos. For example, people can simply put up a petition against the power plant with the government. The government can make better use of the £6 million. The money can be used for funding researchers or funding the homeless. Honestly, if I had that much money, I would take an early retirement and travel around the world.