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What is the proper role of government in the economy?

What is the proper role of government in the economy?. AGENDA May 19, 2014. Today’s topics Comparative Economic Systems Administrative Tues., May 20 (tomorrow) = ELECTION DAY Homework Complete your Global Citizen Report DOSSIER checklist Audience & Perspective / Organization Research

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What is the proper role of government in the economy?

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  1. What is the proper role of government in the economy?

  2. AGENDAMay 19, 2014 Today’s topics Comparative Economic Systems Administrative Tues., May 20 (tomorrow) = ELECTION DAY Homework Complete your Global Citizen Report DOSSIER checklist Audience & Perspective / Organization Research Comparative Country Data Research Notes Practice your 5-6 minute Global Citizen Report presentation

  3. Learning Goals Unit 8 Guide • To what extent should governments participate in the economy? • Describe/explain these three economic systems: • Capitalism • Communism • Socialism • Which of these economic systems is best? Why?

  4. CAPITALISMaka Free Enterprise System Free Market: Market in which buyers and sellers are free to buy and sell as they wish Four fundamental factors • Private ownership (capital, land, labor) • Individual initiative (entrepreneur) • Profit • Competition (monopoly = no competition)

  5. Two Theories of Capitalism • Laissez-Faire • Very limited role for the government in the economy • Idea that the free market will work automatically to the ultimate benefit of all • Mixed Economy • Some (limited) government role in the economy • Prime example = USA (public schools, utilities, roads, student loans, Social Security, etc.) • Labeled “socialism” by some…

  6. The Communist Manifesto According to Karl Marx, LABOR -- not capital -- is the proper basis of an economy… • History is a series of class struggles with government maintaining the power of “capitalists” (the owners of capital) • Religion is also used to control people • Inevitably, there will be a revolution of the workers to overthrow capitalists • Leads eventually to a classless society in which everyone owns all property in common, everyone works hard/does their best, and everyone gets what they need

  7. Two Strands of Marxism

  8. The U.S. in a Global Economy Globalization: Increased economic interdependence, driven by advances in technology and the desire for increased international trade Protectionism:Government controls on imports to protect domestic industries/jobs from foreign competition • Tariff = Tax on imports; a prime tool of protectionism • Others = import quotas, trade embargoes • NAFTA: U.S.-Canada-Mexico free trade zone (eliminates tariffs and other trade barriers) • WTO: Sets/enforces rules for international commerce among member nations

  9. Homework Before you leave • Pick up your belongings & any trash • Straighten desks Homework • Complete your Global Citizen Report • DOSSIER checklist • Audience & Perspective / Organization Research • Comparative Country Data • Research Notes • Practice your 5-6 minute Global Citizen Report presentation REMINDER: • Tues., May 20 (tomorrow) = ELECTION DAY

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