Essays /

Influence Canadian Government Candiann Markets Mla Footnot Essay

Essay preview

Today more than ever in Canada, the government has a significant impact on national markets through the taxes that they impose, the implementation of both price ceilings and price floors, and also through production quotas placed in certain industries. There are other factors that also allow the government to influence the markets, however the aforementioned ones are by far the most influential and the most important to delve into. A market is essentially anywhere that a good or service can be exchanged between both a buyer and a seller at a price agreed upon by both parties. A typical example of a market would be the stock market, where stockbrokers buy and sell shares of companies at prices upon which both parties agree. However, even a local general store is a form of market as well. With that being said, it is easy to begin thinking about all the ways the government influences each and every kind of market; theres thousands of different ways. Something as simple as a duty being placed on a certain product can cause waves of change in certain markets. In effect, any change the government imposes in a market will have drastic consequences, which is why they have such an influence over our national markets more than any other financial entity ever can. With all of this in mind, it is a good idea to take a look at one of the most effective forms of influence the government uses, taxation.

The governments influence on markets through taxation is strong due to its policies on the taxation of goods and services as well as income. Taxation is used to maximize the welfare of the population, as the capital gains achieved by the government are typically retained and recycled back into society through forms of social services, for the betterment of its constituents. That is a benefit of government intervention in national markets, however their range of influence through taxation is much greater than just the betterment of the population; taxation affects business decisions, market trends and many other aspects, as we will see. The simplest form of taxation is the GST, which is the Goods and Service Tax, imposed by Mulroneys Conservative government in 1991. The GST is a tax added on to the purchase price of just about every product imaginable, except for certain products and services deemed as essential such as groceries, residential rent, and medical services, and services such as financial services. However the latter are also taxed in some form or another by the government, although not necessarily by the GST. The creation of the GST influences Canadian markets in a big way; many economists claim that since the inception of the GST in 1991, the Canadian underground economy has seen a sizeable increase in activity. This is due to the fact that with the GST, the consumer ends up paying a higher than retail price for their goods, which leads many of them to simply turn to the black or grey markets, where they can purchase their goods and not owe a single penny to the government. Not only that, but the GST imposed by the government may also have an effect on consumer spending in general. Not every consumer will turn to undergro...

Read more


-29 .. 000 14 15 16 1917 1991 1998 2004 2005 2008 2009 21 250 27 321 4 50 500 abil abl achiev action activ ad adapt addit adequ advantag affect aforement agre agreement agricultur albright allow alreadi also alter although altogeth amount anoth anywher apart appli around artifici aspect assur attempt back base basi becom began begin benefit better big bit black blow bring bryan busi buy buyer canada canadian candiann cannot capit caplan case cash caus caveat ceil certain chang charg cheaper chris cite citizen claim clair clear cobb collect come commit commod compani compar condit consequ conserv consid constitu consum consumpt control corpor could countri creation crop crucial curb dairi day decid decis declar declin decreas deem degre delv demand depart desir despit differ dire dont downfal downsid drastic drive due duti easi econ econom economi economist effect embattl employe end enough entir entiti entrepreneur equilibrium essenti establish even ever everi everyon evid exampl except excess exchang exert expect extra extrem fact factor fair famili far farmer feder final financi find firm floor footnot form full fund gain general generat gerri get given global go goal goe good goudreau govern great greater grey grit groceri gross growth gst habit hand happen harder hardship heavi help high higher highest highway histori home homeown hous howev hurt idea ideal illeg imagin immens impact implement import impos improv incept incit incom increas increasein individu industri inflat influenc influenti insignific intervent introduc invest issu jan justifi keep kind labor lack landlord latter lead leav legal legisl less let level life like likewis limit live local longer look low lower lowerth lowest lucrat made make mani mar market maxim maximum may mean medic meet mental mention michael million mind minim minimum mla money much mulroney nation necessari necessarili need net new nov offer offset one online.government order origin otherwis ottawa owe paid pair parti pay penni peopl period person place pleas polici popul possibl post power premium prepar pretti prevent previous price produc product profit program properti prosper protect provid provinc provinci provok pst purchas put qualiti quantiti quebec quick quit quota rais rang rapid rate reason recessionari recycl reduc regard regul remain rent rental residenti rest result retail retain return revenu road said sale save say scrap sector see seem seen sell seller sens sep servic set share shortag shortcom show signific similar simpl simplest simpli sinc singl sizeabl small social societi someth somewher specifi spend stabil state stay still stock stockbrok store street strong subject sudden suppli surplus sustain system tabl tag take tax taxabl taxat taxi tempt tenant term theori there therefor theyll theyr think thousand throughout time tip today told ton tool total transport trend turn typic un un-tax underground unfair union unreward upon upper us use via view wage watt wave way wealth welfar well wheat whether will wish within without wont word work workforc world would yet york your