On Tuesday, November 12, the Chinese leaders finished the third plenary session of the 18th Central Committee with a promise to grant private companies an more important role in the state’s economy. However, although the leaders were under pressure of providing the country with a more effective economic model, no dramatic reform was mentioned in the plenary session.

I am rather disappointed with the government’s announcement. Because the Chinese economy had been growing rapidly in the past thirty years and had slowed down in the recent years, a reform was desperately needed in order for China to maintain a constant economical growth. However, the leaders did not give a definite resolution to the concurrent problem; only a vague suggestion was provided. In my opinion, to maintain a high economic growth rate, a new, effective economical reform should be implemented as soon as possible because the state-centered model is no longer suitable for China’s current economical situation.

http://www.vancouversun.com/Business/asia-pacific/China+Communist+rulers+pays+service+market+while/9155923/story.html

The public expects the Finance Minister Jim Flaherty to announce some positive news when he announces the government’s fall economical update on Tuesday, November 19. Jim Flaherty hinted earlier that the deficit would be less in the current fiscal year and that an increase in surplus would be observed in the 2015 fiscal year. The minister’s signal has provoked speculation that the government may be able to eliminate deficits one year prior to the planned fiscal year.

I deem this as a great news, for the successful early elimination of financial deficits will benefit the Canadian Economy greatly.  Such action not only boosts the public’s confidence on the Canadian government, but also signifies possible taxation reductions in the future. Therefore, the Finance Minister has put himself into a favourable position by announcing the great news.

http://www.vancouversun.com/business/Finance+minister+goal+merely+balanced+budget+useful+surplus+2015/9152589/story.html

In Derrick Penner’s business blog “China, pollution and choices to end an addiction to coal in favour of LNG”, the author states that since the long-term usage of coals has polluted China’s environment, the country is now in favour of deploying liquified natural gas as a new source of generating energy. The Chinese is currently negotiating with Russia’s monopoly gas exporter, Gazprom, for a fair natural gas importing deal. If the deal is successful, a pipeline will be constructed on the coast of British Columbia.

The author recommends the public not to posses an optimistic attitude towards the potential economical benefits a pipeline would provide to the province, since the deal is still at its negotiation stage and that the Chinese have other options to purchase natural gas from. I completely disagree with the author’s point of view. I believe that the deal is likely to be settled within a short time span, since China is indeed in desperate need of natural gas and that importing from Russia would be the ideal solution, both economically and politically. Therefore, in my opinion, a pipeline is likely to be built in British Columbia, and it will provide the province with an abundant of job opportunities and a huge stimulation to the provincial economy.

On Wednesday, November 13, the federal Employment Minister Jason Kenney stated that to solve Canada’s skilled labour shortage problem, employers need to raise wage levels; Kenney believes that current wage levels can barely keep up to the inflations, and therefore it is illogical for employers to complain about skill and labour shortage. The federal government intends to withdraw 300 million from the 500 million grant , originally used to assist provincial government and employers to train better skilled labour forces. Kenney claimed the government was not “impressed by the level if investment by Canadian employers skills training” (the Vancouver Sun 2013).

I totally agree with Kenney’s point of view. The employers cannot take advantage of their workers by giving out low wages and still expect to have skilled employees; if the employers wish to gain more, they need to commit more themselves instead of replying on government grants. The government has made the right decision to cut grants, since now the employers are forced to raise wage levels if they want skilled workers. A raise in income results in satisfied workers, who will in turn benefit the employers by contributing more to their companies. The problem has been adequately solved.

The American automobile giant General Motors has issued a recall on 60,000 Chevy Malibu sold across North America. GM states that a computer defect would cause windshield defrost problems, which will in turn affect the drivers’ fields of vision while they are driving. Accidents stemmed from this systematic error have yet been reported.

While recalling defected cars is a responsible and ethical act conducted by GM, I expect that the company will lose a lot of profit, not only from the labour cost needed to cover the recall, but also from the decline of customer confidence. When a major recall occurs, consumers are less tempted to buy vehicles from that company because they are reluctant to become involved with the possible future recalls. In addition, a sharp decline in consumer confidence is likely to cause a major decrease in the company’s stock value because share holders no longer believe the company is able to gain much profits. Therefore, GM will suffer a lot from the recall.

A document by the B.C. Parks in June 2013 recommends the oil companies to considerconstructing oil pipelines through naturally protected areas such as provincial parks and conservancies. While economists advocate the idea, environmentalists take an opposite stand, worrying that the construction of a pipeline will damage the surrounding

environments.

Personally I agree with the environmentalists. Although construction of pipe linrovide great economic benefits to both private companies and the government, the destructions such acts impose on the environment will be irreversible. The environment plays a great role in maintaining Canada’s economy, since our nation primary income comes from natural resources. Therefore, to maximize long-term benefits, the environment should be preserved; harming the environment will only provide short-term benefits to the economy.