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- The year is 2069, and the Fanta Virus has taken over the world. John and his grandson Mahmoud are living together in quarantine.
- How was the first day of the Fanta Virus?
- Well the first day of online school was ok. Quick question though, with the closing of all non-essential retail, how will the government act to address the major layoffs?
- John decides to tell Mahmoud about his experience with the COVID-19 pandemic and the actions of the government.
- Mahmoud, back in 2021 the government placed similar health restrictions for COVID-19. I will explain what fiscal policies were put in place to address the cyclical unemployment.
- Ok!
- John decides to then explain what unemployment is, and the different types to help Mahmoud understand the information later on.
- The unemployment rate represents the percentage of the workforce that is looking for a job, but does not currently have one. In the case of the COVID-19 pandemic, the increase in unemployment was caused by cyclical unemployment. This is a result of the economic downturn from closing all non-essential retail. People lost their jobs and did not have money to spend.
- John is a retired high school teacher. Mahmoud is a grade ten student enrolled at Bayview S.S and takes Introduction to Economics.
- John then explains the impacts on the economy utilizing a row boat analogy.
- When the COVID-19 pandemic occurred, John was a university student at the University of Toronto.
- From there, John explained how the government addressed the unemployment and economic downturn.
- The Government of Canada utilized a stimulus expansionary policy. This is when they increase spending to support the economy when aggregate demand is lower than GDP potential and to stimulate the economy. The government spent 50 billion dollars on the “Paid When You Get Laid Off Program”. I can show you the original broadcast from Prime Minister Wu.
- Knowing that Mahmoud is a competitive boat rower, John decides to use a row boat as an analogy to explain to Mahmoud about the unemployment situation during the COVID-19 pandemic.
- Youtube
- The “Paid When Laid Off Program” will provide $500 in cash for all individuals who lost their job in the COVID-19 pandemic to spend on necessities. Furthermore, half of the money will be given as government subsidies to ensure retail entities do not declare bankruptcy. I assure all Canadians, that this government will utilize the fiscal tools within our powers to help those impacted by the pandemic.
- John: The boat represents the Canadian labour force. With the public health restrictions, fewer people are able to contribute to the production of goods and services. Those individuals also have lost their income, and cannot afford basic necessities. It's like they have lost their paddle to help row the boat forward.
- John, later on, showed Mahmoud the original footage of Prime Minister Wu announcing the "Paid When You Get Laid Off Program".
- Let's watch it!
- *Broadcast from Parliament Hill, Prime Minister Wu speaking. (April 1, 2021)
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