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Cocktail Party Economic Analysis

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In markets both positive and negative results can occur from government interventions. In particular, the Canadian government’s intervention in agricultural markets has caused issues with the grain industry according to a Globe and Mail news article entitled the Grain Industry Pushing for Market-Driven Rail Reform. The article along with Cocktail Party Economics’

(CPE) can aid in the knowledge of government interventions in markets and whether or not efficiency and equity occur due to the actions of the government.

The news article references the federal government’s removal of the amount of grain railway companies are required to haul for farmers. Since, market demand drives the trade in wheat, canola and other crops the farmers feel a need …show more content…

Essentially, suppliers of grain are unable to meet the demand internationally to export their product. Their inability to transport their product in the larger quantities they require was limited by the federal government’s policy on the railway. The farmers and grain companies have been experiencing inefficiencies in the quantity of product they are able to product and move towards buyers. As mentioned in CPE, “When a government intervenes to change price or quantity to a number other than the efficient free market amount, economists say that the government is distorting the market” (pg. 142). To an extent, the market has been distorted in the situation between grain farmers and railway companies. The government had intervened to improve the transport of grain by railway companies since the large quantities farmers had where not being moved sufficiently. Prior, to the intervention the efficient free market amount was not reached, and with the intervention the efficient amount was only closer to being obtained. Now with the removal of the government intervention, railway companies need to expand their capacity to be able to accommodate the demand from farmers for their services for efficiency to be …show more content…

Railway companies barely focused on rail lines that were smaller, slower and went to the United States. The three major ports of Vancouver, Prince Rupert, BC, and Thunder Bay, ON had the most attention and improved change. Certain farmers were treated unfairly with the thresholds because they were located near a major rail line. The decision by the government pleases these farmers as they can now lobby for their own changes along with a review of the Transport Act.

Overall, the Canadian government’s intervention in the agricultural market to improve the movement of grain through the railway was both positive and negative with its impacts. The initial intervention allowed for more grain to be hauled due to the thresholds, although, some farmers where not helped with the intervention due to their rail lines access. The intervention prevented an efficient free market from occurring, however, improvements were made for a better quantity to be reached. It seems the removal of the threshold is for the best since railway companies are now meant to continue reaching farmers’ demand and improving their resources as

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They are also trying to make it fair for consumers and make sure they don 't pay more then they should have to if farmers have high prices. Canadians farmers seemed to like having no government programs regulating there products and produce due to the fact that they could produce and sell more. It goes on to talk about how the government uses price supports on the farmers which means that they are basically putting price controls on the farmers to artificially increase prices in there agricultural market. As government make changes to there polices there are both winners and losers. This is because trade sensitive commodities have both much to gain and much to

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It changed the time it took to travel from the east coast to the west coast from a few months to a week. This transcontinental rail road brought a more civilized life to the west and helped the surge of immigrants heading west. This rail road also lead to a huge boom in agricultural trade from the national level all the way to the global

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By diversifying the crops definitely would have helped the prairie with or without the war or government. However, it seemed that government incentives lead the way. I am not a farmer or from the prairies, but I believe that Ottawa should not have given the Canadian Wheat Board the monopoly of selling wheat internationally. Perhaps it did help out at the time, but taking away free capitalism to me is not good. At the time, the war did created new jobs, but you do not need war to create jobs, at least that is what I believe.

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From 1865 to 1900 agriculture was at war, shifting from small, individual farms to larger commercialized farms because of the devaluing of currency, competition from corporate farms with more land and better technology, and government policies that proved detrimental to those clinging to old ways of life. To escape debt and seek profit in new lands, many farmers started working westward but so did corporations looking to expand. Because of westward expansion, companies like the union pacific railroad company built railroads that connected lands all across the U.S. and earned 10 miles of land in either direction of the railroad. This land put the railroad in control of many western lands and in control of the prices of land, travel and resource transportation.

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The government was able to do this by controlling the supply and demand of agricultural products. The government was able to

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After the railroad lines had been built out west changes occurred for both the Western and Eastern United States. By 1860 railroads connected nearly every major city and over 80 percent of farms were 5 miles from the railroad. It was easier and faster to transport goods such as; lumber, grain, corn, etc. to the Eastern United States. Farming changed with railroads because farmers could put their products and animals on the trains and make money. Within the first 10 years of completion the railroad had shipped over $50 million in goods.

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Therefore, the harvest of crop was growth and some farmers turn into commercial farmers, who specialized in crops and goods for sale. They increase hiring more wage labor such as women began to work in new kinds of household work then to the factory and decrease on foreign import of goods. Also, the transformation increased the consuming of goods such as salt, coffee, sugar, tea and flour in the market. This was noticeable in the commercialized farming area in the

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Railroads carried new and expensive machinery from factories in the East and Midwest to Oregon farmers who in turn became more specialized and profit oriented.” Railroads boosted trade and production by massive numbers. Without railroads, trade would not have been as advanced and farmers would have no way to deliver crops in a quick manner that would provide fresh produce to consumers. One major railroad that is talked about today is the Richmond and Alleghany Railroad. During the building of this railroad, many complications occurred, but no matter the dilemma, they always approached and attempted to fix it, as said in Richmond

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The appearance of the railroad in the early 19th century created a revolution in the transportation for the development of the economy and the society. This invention, eventually, also brought a lot of outcomes as well as disadvantages for the people living near the routes and the stations. First of all, the railroad system increased the carrying capacity and reduced the shipping cost. Not only people near the stations received this benefit but also the rural area where the railroad system reached. “Railroads provided a quick, scheduled, and year-round mode of transportation.

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In conclusion, the effects that the transcontinental railroad has on the United Stated were profound. The transcontinental has open up a lot of opportunities for this country. In fact the construction still remains open and anybody can site see this amazing historical event. Being able to have a transportation that can transport people and goods to each coast of the country has become best opportunity for people to explore the United States.

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Corn Laws were created in Britain in 1815-1846, which were putting tariffs on corn imports so that British people would only buy domestically and support their domestic prices. The reason for that was because of the relative law prices of the competitors outside Britain. On one hand Malthuas favored and supported these laws accordingly because he thought that in order to ensure sufficient agriculture capacity in times of war, domestic production should be prioritized and secured from foreign imports. While recognizing that sometimes positive role of market foresees are necessary, Malthus rejected a doctrine of laissez-faire. In his Principles he wrote that ‘it is impossible for a government strictly to let things take their natural course’ (Malthus, 1836: 16)).

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