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Pear writing assignment

Last updated on 04.06.2020

Dear Prime Minister Trudeau, I have been reading a book for my Macroeconomics class called “Dinner Party Economics” by Eveline J. Adomait and Richard G. Maranta. Throughout the book I have learned some things that I want to discuss and use to hopefully change your mind regarding pipelines in Canada. I hope you enjoy the points I make throughout this letter. As a Prime Minister you do your best to keep the government in order and make the country better, and to be fair you haven’t closed the government for a month therefore I think you’re doing fairly well. As you regulate the government, the government regulates taxes. What I’ve seen through the fiscal policy (p.148) is that the government can influence revenue collection and expenditure to influence the economy. I believe the fiscal policy is important because from what I understand it is a way the government is able to manage the economy. It does this by influencing how much of a product is produced. With the fiscal policy Franklin D. Roosevelt increased the governments spendings in order to try and pull the U.S. economy out of the Great Depression, he did this by increasing job opportunities to fight unemployment rates, regulate the business cycle, and attempt to bring inflation under control (p. 148). Using this as an example I am assuming that if you were to even slightly increase taxes you could have the money to create and expand the pipelines in Canada. In order to have the money to do this, the fiscal policy is a good idea for many reasons, such as for the Canadian population. Another thing I’ve learned throughout Macroeconomics are the different types of labor market and ways to calculate them such as, labor force participation rates, unemployment rates, employment-to-population ratios, and duration of unemployment (p. 74). Although this is just how to calculate the labor market, they are still important because the calculations show the percentage of participating individuals within the nation. I am mentioning these labor market calculations because if you were to expand and place new pipelines you would be creating more jobs and replacing other methods of transportation that are more dangerous such as decreasing long truck drives which could lead to accidents, and decreasing ship deliveries causing a lowered risk of oil spills. That being said, the participation rate would increase, employment rates would hopefully decrease, the employment-to-population ratio would hopefully favor the employment side, and decrease duration of employment (p. 76). Therefore, placing or expanding pipeline would affect the labor market in a positive way. As a Prime Minister another job is to help the people within the country as you represent them. In the situation where you open new job possibilities and replace dangerous jobs with safer pipeline jobs you are increasing the Canadian labor force and employment rates. Not only do you increase these fields you also benefit the Canadian economy. As stated above, if you were to expand and place pipeline there would be a benefit within the Canadian economy. How? Money Supply (p. 31). Money supply is essentially the amount of monetary assets that can’t be readily converted into cash, which helps with long term investments (p 31-34). Money supply is important because when there is an increase of money within an economy banks will encourage private consumption, or consumption of goods and services acquired and consumed by a household (p. 49-50). This will lead to the population continuing to invest in private consumption, therefore, there will be an increase in the quantity of money individuals and firms hold and they will then spend said money more freely. A correlation with all of this is that with an increase in money supply there is a decrease in interest rate which encourages people to increase in lending and contribute to investments. Up until now I have mentioned positives for the pipeline, such as benefiting the economy, labor force, and the government. In all these ways the pipeline is a beneficial factor, however, another term I have learned in Economics is opportunity cost. Opportunity cost is essentially what an individual would lose or give up by making a different choice, a good example of opportunity cost is going to a movie with friends rather than a basketball game by themselves. By picking the movie the individual was able to do something with friends, but in turn lost the opportunity to watch a live basketball game. In this example the individual chose to have quality social time with their friends rather than attend the game by themselves. The choice for pipeline is between benefiting the nation or harming the ecosystem of the nation. While I firmly believe that benefiting the nation is important, I also strongly believe that Canada has done an exceptional job when it comes to people, economy, and government. Significantly better than other countries and I say this as someone who is from the United States. However, as someone who is pursuing science, I know how many issues there are regarding ecosystems, some examples being deforestation, overfishing, and most popular, climate change. Installing a pipeline means there is destruction of habitat, the flow in the pipeline means there could be more leaks from the pipeline- much more than a truck, ship, or train might produce, and if there is a leak it will be much harder to spot since pipes are below ground and it would be in the wilderness. My final input is that I came to Canada for University but also for the different perspective the nation seems to have on so many topics in comparison to the U.S., there have been a few articles regarding ecosystem decisions that have shocked me for Canada. The other day I read an article where 80 sea otters washed up to shore and died, they had died from paralytic shellfish poisoning that was caused due to an increase in temperature in ocean waters. It was said to fix this problem individuals should cut down on carbon use, and pipelines produce greenhouse gases which carbon is a part of. Although pipelines could strongly benefit the nation, it would also negatively impact the ecosystem more than people may think. Look forward to your decision, H

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