Economics Mock Election Speech
Canada’s economy is in the expansion phase of the business cycle. While this is
good for our economy, other problems have risen that can potentially harm Canada and
its citizens. While our GDP is growing at a steady rate, and on paper all seems well,
Canada is losing vast amounts of money due to its high dollar value in comparison with
the United States of America. The USA is Canada’s biggest export partner, and since
Canada is a country that greatly depends on its exports for revenue, it is not a good sign
that our dollar is higher or at the same level of the US dollar. This issue has lead to a
great amount of unemployment and loss of jobs in the manufacturing sector. The solution
to this problem would be to devalue the Canadian dollar. This can be accomplished by
using an expansionary policy in both fiscal and monetary fields so that more money is put
into the economy, thus lowering the value of the Canadian dollar.
Fiscal policy consists of actions that the government takes in order to maintain the
health of an economy. These policies are: controlling the tax rates, and controlling the
amount of government spending. In an expansionary policy, such as the one being
proposed by my party, the government would lower tax rates as well as increase
government spending to ensure that the everyday citizen has more money in their pocket
to spend.
Monetary policy consists of the Bank of Canada controlling certain operations in
order either contract or expand the money flow in an economy. In my party’s view, the
expansionary policy should be used. This means that the bank of Canada will lower its
interest rates, therefore increasing the amount of loans and the value of those loans to be
borrowed at by chartered banks, and thereby giving the citizens easier access to loans.
Also, the bank of Canada will lower its reserve ratios, allowing more money to be lent
out by banks to the public. The bank of Canada will also buy bonds and increase federal
transfers, these actions will also help to stimulate the economy by giving the citizens
more money.
In conclusion, by using expansionary policy in both the fiscal and monetary
fields, the Canadian economy will grow, while still lowering its dollar value to a level
that is stable for the economy to grow steadily and reach full employment, while at the
same time, leaving each citizen with extra money to spend. So if you like the idea of
more money in your pocket, more job opportunities for you, and overall more prosperity
as a country, vote for the party that best represents your views, the party that knows what
they are doing, vote for the prosperity party of Canada.