Economic Development (gap between rich and poor)  Jerry  Kevin  Albert

What is Economic Development?  Economic development usually refers to the adoption of new technologies, transition from agriculture-based to industry- based economy, and general improvement in living standards. (There's a connection between this and HDI factors)

HDI Factors  Health: Life expectancy at birth  Education index: (expected) Years of schooling  Standard of living: GDP per capita

Economic development occurs when:  development of infrastructure (transportation, banking)  technological improvements take place Traditional economies transform into developing economies, eventually transform into developed economies How does development occur?

Development factors  abundance of natural resources  free and fair political system  high rates of literacy  open attitude towards change Why are some rich and others poor?

Canada for example...  When Canada built the transcontinental railway in the 1880s, this (transportation infrastructure improvement) led to increasing growth in business

Let's talk bout politics

Cap VS Com  -capitalism is a system where people are able to compete in business freely and keep all of their earnings  -capitalism allows for people to easily become rich while this will increase the gap between rich and poor  -If managed improperly Capitalism will allow a small group of rich people to control all of the wealth  -Communism is a system in which all of the money goes into a pool and is fairly distributed to all the people  -Originally designed as the fairest political system, if used improperly will allow for a small group of people to take control and possibly turn it into a dictatorship

USA & China  -some of the largest economies in the world  -also with a large gap between poor and rich people  -there is a large amount of debt that the US must pay off while they continue to put spending into military and less into healthcare and schooling  -most states of the US are near bankruptcy  -alleged communism but in reality is mostly capitalist  -world's second largest economy with similar problems to the US  -Currently still a nation in development, there is regardless a very high gap between rich and poor, with many government officials in corruption

Canadian economic history Pre War Boom Second World War WWI and Roaring 20s The Great Depression Boom years Recent years

Pre War Boom  Canadian economy improved dramatically  from 1896 to 1914 Canada had the world's fastest growing economy  settlement of the west was a cause of boom

WWI and the roaring 20s  the First World War led to further boom from an increase in manufacturing  war supplies  weapons  By 1920s, a increase in Canadian Standard of living occured because goods such as radio, automobiles and electric lights were invented (technological improvement)

The Great Depression & Second World War  GDP declined, low population growth and high unemployment as well as increased crime rate  unemployment problem disappeared as soldiers were recruited and factories turned to war production

Boom Years  Economical expansion for Canada  After 1945, Alberta and Saskatchewan's economies are transformed by the discovery of oil (Natural resources)  Established the Canada Pension Plan and funded health care (reduces UE% and generates GDP)  Canadian economy became close with Americans as agreements such as NAFTA are signed

Recent Years  Massive government deficit in early 1980s and early 1990s  After the economic slump from the Canadian economy improved with surpluses every fiscal year up to 2008  the 2008 economic crisis did not affect Canada as the Americans —> led to recession  After 2008 downturn, the Canadian economic growth has been concentrated in the oil, real estate and income trust sectors

Summing up....  Through a whole series of historical events from the past, some people became rich while others stayed poor.

Rich people in Canada... NamesNet WorthInvolvment? Thomson Family$30,738,353,336 Holder of Thomson Reuters, Woodbridge Co. Galen Weston$11,381,211,635 George Weston, Associated British Foods, Holt Renfrew Irving Family$8,228,039,229Irving Oil, J.D. Irving James Pattison$7,875,807,140Jim Pattison Group Rogers Family$7,404,572,651Rogers Communicatioons Saputo Family$6,240,002,796Saputo, Transforce (dairy)

Cool interesting STATs  in 1998, approximately five million Canadians lived in poverty (16% of population)  2001 Canadian census, 20% of population in Vancouver lives below poverty line  Our Downtown East-Side is one of the most poverty stricken neighbourhoods in all Canada  People on Downtown Eastside have the lowest per capita income in all of Canada  Shaughnessey, our west side, is one of the wealthiest neighbourhoods in all of Canada  top 20% in Canada earned an average of $98,000 while bottom 20% earned $4000  Top 1% of people in Canada owns almost as much as bottom 80%

How Do We decrease the gap? Why Don't we:  Invest in early childhood education  Have sex equality: women's rights  Tax rich at reasonable rate  Give money to the poor (through government, individuals, etc)  Invest in infrastructures  Improve on health care system