Grade 12 Economics students have put theory into practice, assessing and debating two critical issues.
With news of Translink options to connect the North Shore with downtown Vancouver, Mr. McLeod's class discussed the appropriateness of a smaller scale interventionist supply-side policy focused on infrastructure. Initially, students thought government spending would bring greater productivity and economic growth to the region. However, they concluded that this would be outweighed by further increases to the government's deficit, already at an all-time high.
Their assessment of the Bank of Canada’s recent policy announcement to hold the overnight lending rate at 0.25% also sparked lively debate. Arguments were presented in favour of maintaining, increasing, and even decreasing the rate. After discussing the long and short term impacts, students decided that a critical consideration in keeping rates unchanged was the high level of uncertainty related to the COVID-19 pandemic.