GEOG 2RC3 Lecture Notes - Lorenz Curve, North American Free Trade Agreement, Visible Minority

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Canada’s Economic Geography
-middle economic power
-not as high as China or US
-smallest economy of G8 countries (US, Japan, UK, Germany, France, Italy, Russia, Canada)
-Canada/US each other’s largest trading partner
-78.9% of Canada’s exports in 2007 went to the US
-Canada net exporter of commodities (US is the net importer)
-general sector model of economic development
-evolution of an economy/society from pre-industrial to post-industrial
1) Decrease in primary sector employment (resources)
2) Increase, then decrease in secondary sector employment (manufacturing)
3) Increase in tertiary sector employment (services)
**diagram
-gross domestic product (GDP): a measure of the value of goods and services produced by the domestic
economy
-primary sector 6.2% of GDP
-secondary sector 17.3%
-tertiary sector 76.5%
-staples theory of economic development
-economic growth based on export of natural resources
-resource-based economy driven by external demand
-classic exports of Canada fish, fur, timber (Harold Innis, 1930)
-economic region: a geographic area characterized by distinct economic activities (ex: industrial region,
agricultural region)
-regional disparities: long-term, chronic differences between regions as measured by objective indicators of
well-being (income, employment)
-ex: Atlantic Canada vs. Industrial Heartland
-heartland-hinterland (core-periphery)
-an abstract theory that explains how the capitalist economic system evolved into distinct spatial units
-heartland/core regions: favoured areas; industrialized, urbanized
-Canada southern Ontario, southern Quebec; Great Lakes-St. Lawrence Lowland
-hinterland/periphery regions: resource producing regions which supply core regions with raw
materials, energy, food
-Canada Atlantic Canada, Territorial North
-core region southern Ontario/Quebec
-upward transitional region BC
-downward transitional region Atlantic Canada
-resource frontier Territorial North
-Western Canada is varied
-space economy: the distribution and location of economic activities
-spatial pattern of resource extraction and the production, distribution, and consumption of goods and
services
-economies of scale: benefits/advantages/savings associated with increasing level of output
-as output increases, the per unit cost of production decreases
-apple analogy 1 is 25 cents, a bunch is 10 cents each
-significant trends since 1970s:
1) Natural resources no longer play a major role in shaping the geography of Canada’s natural
economy
-still important, but no longer capable of changing the map of settlement or altering regional
political power balance
-BUT natural resources are the basis for the recent westward shift in the balance of
political/economic power 2011 was the first year that more Canadians lived west of Ontario
2) Deeper integration of Canada/US economies
-Free Trade Agreement (1988), NAFTA (1993)
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-BUT we see the thickening of the border
3) Recognition that Canada’s economic future is tied to the knowledge economy rather than the
traditional resource-based economy
-recent trends based in globalization
-globalization: emergence of capitalism as a truly worldwide mode of organizing economic activity, and
as the most powerful basis for allocating resources
-earnings/income:
-median family income = $68,860
-spatial variation in median family income
-Nunavut = $58,590
-Alberta = $86,080
-Newfoundland = $59,320
-NWT = $98,530
-what about income distribution?
-top 10% of families average income $185,000
-bottom 10% of families average income $10,341
-1980-2000 top 1% of Canadians have almost doubled their share of the national income from 7.6%
to 13.6%
-plutocracy: society ruled by the wealthy
-Lorenz curve depicts income inequality
-line of perfect equality 45 degree angle
-greater curvature greater inequality
-Gini Coefficient higher value = greater inequality (0 = complete equality, 1 = complete
inequality)
Poverty in Canada
-low-income cutoff (LICO): families spending more than 59% of its income on necessities (food, shelter,
clothing)
-straightened circumstances
-the average Canadian family spends 39% of its income on necessities
-some social agencies define poverty as low income relative to the average/median income of Canadians
-poverty is relative
-other groups define poverty as the inability of a family to buy a prescribed basket of goods (Fraser Institute)
-poverty is absolute
-policy response to poverty depends on view of poverty relative/absolute
-variation in LICO, depending on size of community and rural/urban
Explaining Poverty
-culture of poverty
-poverty results from the internal pathology of deviant groups
-is this blaming the victim?
-cycle of poverty
-poverty results from individual inadequacies being transmitted from one generation to the next
-blaming the victim?
-institutional malfunctioning
-poverty is rooted in the failure of the state
-the state does a poor job in planning for and administering to those in need
-is it too easy to blame the state?
-inequitable distribution of resources
-poverty is the inevitable outcome of capitalism
-capitalism features “haves” and “have-nots”
-but resources/wealth can be redistributed if the political will to do so exists
-labour market theory
-poverty is the result of differential wages paid in different job sectors
-but this only looks at one segment of society
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Document Summary

78. 9% of canada"s exports in 2007 went to the us. Smallest economy of g8 countries (us, japan, uk, germany, france, italy, russia, canada) Canada net exporter of commodities (us is the net importer) Evolution of an economy/society from pre-industrial to post-industrial: decrease in primary sector employment (resources, increase, then decrease in secondary sector employment (manufacturing, increase in tertiary sector employment (services) Economic growth based on export of natural resources. Classic exports of canada fish, fur, timber (harold innis, 1930) Gross domestic product (gdp): a measure of the value of goods and services produced by the domestic economy. Economic region: a geographic area characterized by distinct economic activities (ex: industrial region, agricultural region) Regional disparities: long-term, chronic differences between regions as measured by objective indicators of well-being (income, employment) Canada southern ontario, southern quebec; great lakes-st. lawrence lowland. An abstract theory that explains how the capitalist economic system evolved into distinct spatial units.

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