Question

Q1a Since Canada has an employment insurance program that provides income for those out of work, why should we worry about unemployment? Do you agree? Explain your ideas with logical examples.

b: Some intellectuals and politicians are of the opinion that the existing employment insurance program can’t protect the economy from the severe effects of natural calamities like COVID- 19. What is your opinion as a student of economics? Justify your opinion with appropriate examples as you have observed all the world in recent days.                                                                                                                                                                                              

Answer 1

a. I do not aggree with the statement.

1. Any country's employment insurance or unemployment allowance programme runs in the assumption of revenue generated and expenditure proposed based. In this context government should must worry about the unemployment rate. Its a cycle if government generates sufficient revenue then only sucg programmes can be run.

2. The canadian government is more worried about that more money will go out with out having more money in.

3. If more people will be categorised as unemployed more the burden on the government.

4. As all the production activities are going down the rate of return in the form of taxes will also suffer

b. It is right to say that such programmes cant protect people from the recent CORONA pandemic due to many reasons

1. CORONA pandemeic effects are world wide and in the phase of globalisation such counter effects will definitly come on to the every economy.

2. IF we see the economic condtion of US,China,France and majjor developed economies the recession will effect all oveer the world.

3. Slowing down the economy and excessive burden of paying insurance to unemployed people is not possible.

4. If more taxes are generated or more primium is paid then only any economy will cope up with such situation