eco12

Is $1 billion G-20 summit worth it?
http://www.cnn.com/2010/POLITICS/06/25/g20.g8.summits/index.html?iref=allsearch
Summary:
Was spending more than $1 billion worth the G-20 summit in Canada? At such a hefty price tag it’s reasonable to ponder whether the meeting was worth it. According to officials, “it has ready paid itself because China has ready announce the strengthening of its currency, which is good for the US and other countries.” The summit is supposed to be an opportunity for the top 19 economies in the world and the European Union to discuss about world problems. However, the main topic of discussion in this particular meet is more focus on the macroeconomic needs. With the G-20 nations control more than 85% of the world GDP, what they discuss and decide will have an important impact on the global economy.

Connection

The connection that seem very obvious to me is the concept direct cost/opportunity cost. At the cost of over a $1 billion (direct cost) we lose an opportunity cost associated with this decision. Because every decision carries with it an opportunity cost, since in order to do one thing, something else must be sacrifice. In doing so we can’t use this money for other proposes like help homeless people in Canada, or improve our school education system. Another connection I made was that to scarcity. Scarcity is referring to anything that is available only in a limited supply. Money is definitely a limited supple. As Dr. Evil learned in the Austin Powers movies, $1 billion isn’t quite what it used to be. And the Canadian government seems to agree with that statement.

Reflection

It seems like the government is enjoying spending money. With over $1 billion price tag for the summit, I personally think that is way off the charts. Compare to the Winter Olympics 16 day budget of $1.8 billion for everyone in the British Columbia regions, its ridicules that the government spend over $1 billion for less than 100 people in only 10 days. However, even with all this bashing, I think I understand why they used all that money. If I had to guest why, it would be to kick start the economy. Canada has made great effort to advertise its country to attract/influence tourists to visit Canada. So in spending all this money we get the economy started. Similar, to what the united states are doing right now. (I could be wrong)