PEAR Writing Assigment PDF

Preview

Summary

essay...

Description

Budget Proposal Regarding the Economic Effects of Immigration in Canada Written by Thomas Toth

Executive Summary This brief executes an attempt to recommend a federal budget to the finance minister of Canada in relation to the macroeconomic implications of immigration. The following information contains various solutions to this specific issue in order to inform the appropriate allocation of money and services. While there are many concepts in economics, the suggestions addressed below can help influence a healthier, more efficient budget that applies leaniantly to immigration. Introduction Immigration in Canada has been going on for years, specifically in 1869 when the Immgration Act was created. Ever since then our economy has had to adapt to the significant numbers of refugees entering the country from across the seas. Immigration has an effect on GDP per capita, the wages of the domestic-born, and the fiscal balance due to the statement of over-population1. I would like to expand on these three topics, digging deeper into the concepts of economic welfare, entrepreneurs, and stagflation. I advise that you, as minister of finance, provide our country with a budget that supports the well-being of immigrants, allows foreign entrepreneurs to kick-start their business ideas, and influences stagflation to remain non-existent. Economic Welfare 1 https://www.canada.ca/en/immigrationrefugees-citizenship/corporate/reportsstatistics/research/economic-social-objectivesimmigration-evidence-that-informs-immigrationlevels-education.html

A relevant issue in today’s society, especially within immigration, is the standard of our economic welfare. Having such broad implications in our economy, economic welfare consists of our well-being in the categories of housing, real income, job satisfaction, employment prospects, cost of living, education, life expectancy/health care, happiness, environment issues, and our leisure time. While immigrants are considered very fortunate to live in Canada, as we all, their restrictions become more severe when it comes to each section of economic welfare above. To increase our nation’s total economic welfare as an average, we need to aggregate or add up all of the individual levels of happiness in that country2. Immigration must come first when attempting to increase this statistic because they are roughly 21.5% of our population and continue to grow our economy. Refugees consistently fill labour gaps in our productivity system, allowing full efficiency to occur in the labour force. As minister of finance, it is your duty to provide our country and each resident an equal chance to a happy life. If you provide Canadians with more jobs, better health care, and safe housing at reasonable pricings, I know that you will be able to achieve that goal. Recommendation: I advise you to lower entry level-housing prices for rent and increase the budget for language education to ensure that immigrants increase their economic welfare. This will help new families to budget more efficiently for food and necessities.

2 Dinner Party Economics, Chapter 3, Page 18

Entrepreneurs Another factor that should be taken in for account is the depth of entrepreneurs that come to Canada from foreign countries. The issue at hand involves the funds needed for immigrants to build up their businesses in order to secure a sufficient amount of income that fulfills their needs. In 2010, about 5.8% of immigrants who had been in Canada for 10 to 30 years owned a private incorporated company (with employees) compared to 4.8% of the Canadian-born3. This statistic goes to show that most of our entrepreneurs are new Canadians and need more support in caring for their professions. The job that governments have when it comes to entrepreneurs is to provide them with the means to get their ideas from a thought to a reality. Unfortunately, sometimes the government can put up boundaries that limit entrepreneurs from doing what they love to do. In this sense, they will initiate incomprehensible processes for business owners to legally operate. 4 With your power, you can help lean towards more affordable ways for entrepreneurs to succeed, ultimately avoiding any obstacles that may prohibit them from work. Recommendation: Provide new immigrants with substantial grants, loans, and disbursements to encourage small business innovations and support our new Canadians. Stagflation A final term used throughout macroeconomics that is concerned with immigrants and our economic growth as a country is stagflation. This stunt in the

economy happens when inflation and unemployment rise at the same time that the economy slows to a recession5. Though we have not experienced stagflation since the early 1970s, COVID-19 has struck our world with similar traits. When it comes to immigration and rising inflation rates, the two are closely linked. Illegal immigrants caused misconceptions in the calculations of productivity when they divided it by the number of workers. This caused an underlying truth about real inflation rates which then spiked them6. Governments are consistently warned throughout recessions to reduce the amount of money punched into the economy as it will most certainly revive another stagflation. In this case, immigrants must be continued to be monitored when entering and leaving the country to ensure that inflation levels are controlled. Recommendation: To avoid stagflation in the future, budget for more accurate technology and researchers to watch over rising inflation rates and unemployment. Locating illegal immigration will allow our economy to continue to excel as we move past COVID19. Conclusion Now that there is a concrete standpoint on what needs to be done in the macroeconomic environment for immigration, you can finally formulate a federal budget to maintain a healthy and happy economy. By lowering housing prices and health care taxes, immigrants can maximize their economic welfare. In terms of entrepreneurship, immigrants will have more support in kick

3

5 Dinner Party Economics, Chapter 11, Page 161 6

https://www.statcan.gc.ca/eng/blog/cs/immigrant -entrepreneurs 4 Dinner Party Economics, Chapter 8, Page 92

https://www.seattlepi.com/local/opinion/article/ How-immigration-inflation-are-linked1265264.php

starting businesses with extra grants and loans. Lastly, stagflation will be controlled by monitoring and investing in resources that investigate illegal immigration that increases inflation rates. As the minister of finance, I have faith that you will be encouraged to use these three concepts and solutions to enhance your decisions when it comes to our economy. The end result will aid not only our immigrants, but our entire population as a whole....