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Analysis of news article in relation to macroeconomic concepts - Term Paper Example

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Analysis of News Article in Relation to Macroeconomic Concepts Name: Institution: ANALYSIS OF NEWS ARTICLE IN RELATION TO MACROECONOMIC CONCEPTS Introduction Universities, as well as other institutions of higher learning, are vital to economic growth. They have an essential role in the Canadian society and economy, innovation and research, as well as growing of future talent…
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Analysis of news article in relation to macroeconomic concepts
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Analysis of news article in relation to macroeconomic concepts

Download file to see previous pages... It is important to strengthen the Canadian economic vision that is built on innovation and knowledge, which is driven by a diverse and successful university sector (Yusuf & Nabeshima, 2012). Using this approach, the Canadian government can fully realize the contributions made by universities, especially those that are business-engaged. This paper aims to discuss the role that universities can play in growing the country’s GDP and in decreasing the rate of unemployment. Universities at the Center of GDP Growth A permanent hike in university funding, for instance, by use of taxpayers’ money, could emerge, as a cornerstone for the government to increase Canada’s GDP. A report by the Universities of New Zealand and NZIER concluded that an increase of government investment in universities would lead to a permanent and significant increase in the country’s GDP. In illustrating how increased funding would affect the economy, they modeled an additional $200 million in university research and funding over the next five years (Yusuf & Nabeshima, 2012). ...
The Canadian government, at present, invests just more than $1 billion every year in universities with a similar amount supporting university students financially (Yusuf & Nabeshima, 2012). The Canadian government increased investment levels significantly in education following a report by KPMG Econ Tech in 2009. The report called, for increased university funding, to boost the Canadian productivity levels nationally by 4.6% by the year 2040. The same report also estimated that the implementation of these recommendations could also add up to 6.4% to the GDP. It is important for the government to increase university learning and teaching base funding by 10% by 2020 and ensure that they maintain internationally competitive funding levels (Yusuf & Nabeshima, 2012). It could be expected that implementation would do more for living standards and GDP than any single reform that is publicly identified and costed. Boosting university investment could lead to a more skilled and smarter, work force and improve wealth distribution that would reduce the two-speed economy problem where there is a boom in some sectors while others continue to struggle. The cumulative benefit to the treasury from these reforms taken over the period between 2010 and 2040 is projected at $325 billion, which is the public funding that is required for Canada’s major future needs (Yusuf & Nabeshima, 2012). This information also confirms that investment in universities from the government will continue to provide a dividend in productivity for many years to come. Expanding university reach in Canada is central to the productivity agenda fronted by the Canadian government. In this century, the ...Download file to see next pagesRead More
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