Understanding Economic Equality: Promoting a Fair and Equitable Society

1. Chapter 12 Exploring Economic Equality

2. Key Issue • To what extent should we embrace an ideology?

3. Related Issue • To what extent are the values of liberalism justified?

4. Chapter Issue • To what extent should governments encourage economic equality?

5. Question for Inquiry #1 • What does economic equality mean?

6. Question for Inquiry #2 • In what ways can governments promote economic equality?

7. Key Skill • Consider the points of view and perspectives of others when defending a position on an issue.

8. Key Terms and Concepts • Command Economy • Economic Equality • Free Market Economy • Mixed Economy • Social Safety Net

9. In Calgary from 2006-2007 Rent average $1089 Average House price was $414 046 Minimum Wage is $8.00 (at this time) $16 640 / year Can someone making minimum wage afford to live? Chapter Introduction (Pg 309)

10. Chapter Introduction (Pg 309) • What should determine the wage of a person?

11. Chapter Introduction (Pg 309) • What should a society value more? • Economic freedom and to take the risk of success and failure • Economic Equality – Sharing successes and failure as a society

12. Chapter Introduction (Pg 309) • The chapter issue: To what extent should governments encourage economic equality, is related to two other chapter we have learned • Chapter 2 – Individualism • Chapter 3 – Collectivism

13. Defining Economic Equality (Pg 310) • Competition is a key value in liberalism • Competition will set the prices for goods and services, determine who will get paid what and who will succeed and who will fail.

14. Defining Economic Equality (Pg 310) • However, people who fail under a system of liberalism can find themselves without money to provide for their basic needs.

15. Defining Economic Equality (Pg 310) • Economic inequality can occur from the following reasons • Competition • Individualism • Free markets

16. Understanding of Economic Equality (Pg 310) • Economic Equality can mean many different things • Egalitarianism • Equal opportunity • Equitable distribution of wealth

17. Understanding of Economic Equality (Pg 310) • Egalitarianism • People should own the means of production collectively • There should be a guaranteed annual income to meet the basic needs of people

18. Understanding of Economic Equality (Pg 311) • Equality of Opportunity • There should be a minimum wage • There should be no discrimination in hiring workers

19. Understanding of Economic Equality (Pg 311) • Equitable distribution of wealth • All people should earn equal wages for work of similar value • People with higher incomes should pay higher rates of taxes

20. Understanding of Economic Equality (Pg 311) • The values you hold on collectivism or individualism will likely influence greatly your ideas on economic equality

21. Understanding of Economic Equality (Pg 311) • The three approaches in dealing with economic inequality • Egalitarianism • Equal opportunity • Equitable distribution of wealth Can be placed on an economic spectrum

22. Economic Spectrum Dealing with Economic Inequality Values of Collectivism Values of individualism Low degree of government intervention in the economy High Degree of government intervention in the economy Equitable division of wealth

23. Understanding of Economic Equality (Pg 311) • Turn to page 312 and 313 of the text. • I will read quotes from the text, you will decide where on the economic spectrum you would put them.

24. Understanding of Economic Equality (Pg 311) • Are there any positions I just mentioned that you have not though about before.

25. Understanding of Economic Equality (Pg 311) • Do you think that people are more responsible for their own well being or do you think the government is. Take a couple of minutes to think where you would put yourself on the economic continuum.

26. Understanding of Economic Equality (Pg 314) • Parties on the political right tend to favour • Small government • Less government involvement • Competition • Trickle down theory • More money will be created at the top by competition and will find its way to the common people

27. Summary of Defining Economic Theory (Pg 310) • People have different understandings of economic equality • Egalitarianism • Equal opportunity • Equitable distribution of wealth • People from individualistic beliefs will define economic equality differently than people with collective beliefs.

28. Question for Inquiry #1 • What does economic equality mean?

29. Question for Inquiry #2 • In what ways can governments promote economic equality?

30. Promoting Economic Equality (Pg 315) • Is there economic equality in Canada? • When compared to 17 other industrialized nations Canada ranks 10th and is given a grade of C (See 315 for graph and details)

31. Promoting Economic Equality (Pg 315) • Do you believe it is the governments responsibility to address economic equality?

32. Promoting Economic Equality (Pg 316)

33. Promoting Economic Equality (Pg 316) • Sometimes political and economic goals are closely aligned • Which quadrant would liberalism fit into ?

34. Promoting Economic Equality (Pg 316) • What are some descriptive words you can say about liberalism? • Do the words peace and freedom belong with liberalism?

35. Economies and Liberalism (Pg 317) • Liberalism and individualism value these concepts when it comes to an economic system • Self interest • Competition • Economic freedom • Private property

36. Economies and Liberalism (Pg 317) • Any economic system exists to answer one question: • How do we deal with scarcity?

37. Economies and Liberalism (Pg 317) • Scarcity looks at: • What will be produced? • How will goods and services be produced? • Who will make these decisions?

38. Economies and Liberalism (Pg 317) • The way the government answers the previous three questions will determine what type of economic system will be in place.

39. Economies and Liberalism (Pg 317)

40. Command Economy (Pg 318) • Recall that communism was a response to the problems of Classical liberalism created by the industrial revolution.

41. Command Economy (Pg 318) • Communism is a command economy. • A command economy is one in which the government has a high control over the economy. • Examples include The Soviet Union and Cuba

42. Command Economy (Pg 318) • A command economy is also called a centrally planned economy or a public enterprise economy. • How do you think they will answer the three questions; what will be produce, who will produce it and who will decide this?

43. Command Economy (Pg 318) • What will be produced • The government will conduct studies to see what the needs of society are • Individual consumer wants are not a priority

44. Command Economy (Pg 318) • How will goods and service be produced? • The government owns most factories and services • The government sets quotas as to how much to make and service • People are often pushed into vocations they appear to have skill in

45. Command Economy (Pg 318) • To whom will goods and service be distributed to? • The government will distribute based on need. This will create economic equality • Distribution may also be decided based on other governmental goals (military, industrial, etc)

46. Command Economy (Pg 318) • Who will make these decisions? • The central planners in the government, often the leaders of the government

47. Egalitarianism and Cuba (Pg 319) • Read pages 319 and 320 regarding Cuba and Egalitarianism? • Be prepared to answer some questions

48. Egalitarianism and Cuba (Pg 319) • How did Cuba define economic equality?

49. Egalitarianism and Cuba (Pg 319) • How did Cuba define egalitarianism?

50. Egalitarianism and Cuba (Pg 319) • What has been changing in Cuba in regards to economic equality?