Reading §
Lecture §
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- Government in the economy & society
- How does government involve in fiscal & monetary policies?
- Inflation
- Unemployment
- Government finances (taxation, deficits)
- ★ Creating economic environment in which business operate
- What are the key roles government interact with business
- Governments as customers of goods & services
- Governments as regulator of certain business activities
- Government as a provider of social & business infrastructure
- Basics of government in Canada for business
- ★ What does federal & provincial governments obtain revenues through
- Personal income taxes
- Corporate income taxes
- Sales taxes
- Tariffs & duties
- Most municipal income comes from property taxes
- How are powers of different levels of government divided under Constitution
- Federal government: defense & foreign policy, regional redistribution
- Provincial governments: post-secondary education, hospitals, highways
- Municipal (not addressed constitutionally): public health, children’s recreation programs, libraries, transportation
- Provincial & municipal – social services, education
- Federal, provincial & municipal – health, policing, environmental protection
- Government as regulators (why do governments get involved in the economy as regulators)
- Protection of consumers – setting & revising rules, conducting investigations & enforcement
- Food & Drug Act – inspection of meat packing plants; only approved pharmaceuticals may be sold
- Regulating Hazardous Products – bans, appropriate labeling
- Specially Regulated Industries - Office of the Superintendent of Financial Institutions, Canada Deposit Insurance Corporation – shape financial services industry; Ontario Securities Commission – protecting investors
- Protecting competition
- Protecting the environment
- Challenge of balancing industry with the environment
- Typically popular with the public
- (Global) Kyoto Accord vs. the ‘Clean Air Act’
- Government-business relationship
- How does business benefit from infrastructure provided by government
- Roads, post office, fire fighting services, utilities, business loan programs
- Government services are important parts of creating a healthy, educated workforce & society – universities, hospitals, national parks, skating rinks
- How does business impact government
- Lobbying – either in person, or by hiring a professional lobbyist to represent their interests
- Businesses have legitimate reasons to want their interests, and their perspectives on a range of issues, understood by governments
- Taking out advertisements
- Sometimes, individual companies, or industry groups acting on behalf of several businesses will pay for advertising
- “Collective Voice” - Industry associations & groups
- Future of business government relations
- Less RED tape vs. government’s protection
- Case study
US Bank Failures
- How has social media affected the failure of these banks
- Self-fulfilling prophecies
- People are concerned, they pulled money, make bank operation hard, bad result
- Social media fuel the crisis, so what is expected happened
- Should Canadians be worried about similar phenomenon?
- Few banks then US (only 5 banks)
- More regulated and more protected then US consumers
Uber
- Safe vs. Unsafe
- Uber is traceable Taxi are not traceable
- Some argue uber is less regulated (news skew effect)
- Regulation concern
- Taxi require a fee (not required for Uber, thus putting them out of business)
Airbnb
- Putting hotel out of business due to cheaper costs
Stimulus During Pandemic
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