Chapter 6 To what extent do different economic systems affect quality of life?

Economic Spectrum http://www.learnalberta.ca/content/sspes/ https://www.youtube.com/watch?v=d8ivuSUfTg4

Focus Questions: What values shape the mixed and market economies of Canada and the United States? How do economic decisions about scarcity, supply and demand, and competition affect individuals and groups?

Economic Spectrum Economics: the study, production, distribution and consumption of goods and services. Economic System: the way a society organizes their economic structure. Economy: the resources and processes involved in the production, distribution and consumption of goods and services.

Scarcity Scarcity: the idea that there is a limited amount of land, labor, and capital. Based on: 1. What is needed or wanted 2. How it will be produced 3. Who will get it and why http://www.youtube.com/watch?v=B3u4EFTwprM&safe=active

Left wing- Planned- socialism The government makes all the decisions on how to produce, manage and distribute resources. Resources are publically owned (controlled by the government) The individual has some choice, but the government has a lot of power. Works towards the Common Good (community)

Right wing- Market- Capitalism The individual decides how to produce, manage, and distribute resources. Products are created and sold for a profit, which allows people to be in control. Resources are privately owned (controlled by business’s and the individual) Individuals make choices on how and what to consume. The economy is driven by consumption.

Mixed economy goodness A mixed economy combines elements of both a planned and private. The government makes some decisions, while others are left to the individual. Some resources are publically owned, some are privately owned. Both individuals and the government influence economic decision making.

Protectionism The concept of protecting your own economy either by imposing tariffs or taxes on imported goods or by encouraging the sale of your goods with incentives or tax or price breaks.

LLC Land: Consists of all the materials found in the natural environment needed to produce goods: - includes renewable and non-renewable resources. Labour: consists of the physical and mental effort needed to produce goods. Capital: The money people own or borrow that is used to purchase equipment, tools, and other resources.

The Public Good Privately Owned: in economics, the part of the economy that is owned and controlled by individuals. Publically owned: in economics, the part of the economy that is owned and controlled by the government. Public Good: what is best for a society. There is where the debate between right and left wing comes in.

Public Good The Public good and cooperation: the belief that individual needs must be set aside and the whole must be put first. - This worldview values equity The Public Good and Individualism: if everyone is concerned primarily with themselves then the whole society will benefit - This worldview values individualism.

Economic Cartoon http://www.youtube.com/watch?v=d8ivuSUfTg4 P202 P211

Crown Corporations Crown Corporation: A company that is owned and operated by the government. Reasons: 1. To provide essential services 2. To promote economic development 3. To support Canadian culture and identity. - This is a huge aspect of a mixed economy. Ex. CBC, Petro-Canada, Air Canada. http://canadaonline.about.com/od/governmentorgfed/a/fedcrowncorps.htm

Canada’s Economy Shift Left: a change in government policy regarding economics which leads to more government control in the economy. Shift Right: a change in government policy regarding economics which leads to less government control in the economy. Canada is said to have a mixed economy which favors cooperation between the public and private sectors.

Canada’s Economy 1963-68: Shift to the ______ Lester Pearson of the Liberal Party won the election in 1963 by a minority victory, which meant they had cooperate with the NDP which led to the birth of - Publically funded health care - Pensions for senior citizens.

This’ll give you nightmares http://www.youtube.com/watch?v=oenEzfS-Ho0

To the left, left, or right 1984-93: Shift to the ____ In 1984 Brian Mulroney wins a majority election. Cut government spending Privatizing certain crown corporations The Creation of NAFTA (free trade between N. America)

The Great Depression http://www.youtube.com/watch?v=f8k0jJdqKP0&feature=related

The USA The USA’s economy has always reflected personal freedom and the individual vs government involvement or Right Wing economics. 1933-44: Shift to the ___ - Franklin Roosevelt is the President during the Great Depression (period of great economic disparity). He creates a policy called “the new deal” which - Creates pensions for seniors - Creates funds to support farmers. - Corporations funded and run by the government.

The USA 1980-1988: Ronald Reagan became President and wanted less government involvement in the economy - Reduced Gov spending - Reduced government regulations of corporations.

Competition In economics, competition is the rivalry between producers to sell their products to the consumer. The concept of competition is the driving force behind a market based economy. Think of a food court! Competition Act: act whose goal is “to maintain and encourage competition in Canada in order to provide consumers with competitive prices and product choices.

Monopoly The concept of a monopoly is very dangerous in a market system. It basically alleviates the concept of competition and leads to one group of person controlling all of the power. ** who would win in a fight?

Supply and Demand P 210-211 Consumers: those who use products and services Producer: those who create products and services Supply: the products and services created by producers Demand: the wants and needs of consumers for products and services.

Why Government? Some governments may get involved into the economy in times of economic crisis. They may spend money to create jobs like public works projects (building infrastructure) They also may feel an industry has become too extreme and they need to help the consumer. Ex. BC gov and insurance

Calvin and Hobbes Explains Supply and Demand

Viewing http://www.cbc.ca/thenational/indepthanalysis/story/2011/03/08/national-costofliving.html Overcoming Scarcity Thinking by Tim Sanders (Part 1) http://www.youtube.com/watch?v=-AJ0NiQiBe0 Abundance VS Scarcity by Tim Sanders (Part 2) http://www.youtube.com/watch?v=9I-Jh6bAxV4&NR=1 Economics Basics : Primer http://www.youtube.com/watch?v=Tp5VyklK4Nw Economics Basics : Episode 4 http://www.youtube.com/watch?v=P0T6ya5qTb4&feature=related

Walk in Assignment How do government decisions that affect competition in an economy reflect values of that economic system? Describe an example based on information from page 213.

JABS!!! The decisions that governments make can affect the amount of jobs that there are in a society. Depending on how much money is spent, the number of jobs can rise or shrink. Stimulus: when the government will spend money to create or sustain jabs! Read 226 + question 202,205,206,207,208,209,211,212,213

Case Study 1 In Canada, the government openly supports Canadian artists. The government gives money every year to Canadian artists so that they may be able to pursue their art form. Artists who wish to apply for this grant must submit an application to the Gov. stating why they want the money and show proof that they may be able to make a profit off of their art form. Subsidy: when the government will pay part-all of the cost of something to ensure that a product can be created.

Telefilm Canada A federal corporation that promotes the Canadian audiovisual industry. It fosters the production of films which reflect Canadian society. P 222- read and outline the differing opinions.

Unemployment Rates The percentage of the workforce that does not have jobs. The government must decide how to combat unemployment across the country. The difficulty is that unemployment rates differ across the country. http://www.tradingeconomics.com/canada/unemployment-rate

Unions P 229- read Labour Unions: an organization created to protect workers and guarantee and acceptable wage and working conditions. Collective Bargaining: Negotiating as a group or whole. Collective bargaining allows the workers to fight as one and have more power than by individually arguing for their wants.

The Power of Unions The idea of a union originated in the late 19th-early 20th century. It unites workers in the pursuit of good jobs for good pay. It gives the workers the power to negotiate. If companies do not fulfill the needs of the workers, the workers may strike (when workers refuse to work).

The Winnipeg General Strike In 1919 many Canadians in Winnipeg could not find work. To protest the difficult times and make the government take action, the workers of Winnipeg went of strike. Fearful of losing control and of Communism, the Canadian government sent in the police to handle the situation with force. This led to the death of a worker and the injury of 29 others.

Supreme Court http://www.youtube.com/watch?v=WDXOOX-DpGI Examine pages 222,227,233 Create a chart that contrasts the two opposing views. Which do you agree with for each issue, why?

“How do economic decisions about scarcity, supply and demand, and competition affect individuals and groups?” Case Study #1: The Case of the Canadian Filmmaker Read the case study on pages 219-224. Then in Groups of 4 you will then discuss the following questions and record your discussion on the first box on handout G-5. What are the positives and negatives that can result when the Canadian government intervenes into cultural industries? Why would the Canadian government want to maintain and build our cultural identity?

Introduction to Economic Systems Economic Assignment: Imagine you and 3 class mates are a family. Your family will have to make a decision on where to live. Country A:

Budget Discussion Post Group Work Did you group buy everything that you needed and wanted with the money you had? Did you have enough money to meet your basic needs? If you had more money, what would you have budgeted for? How do you determine what was a priority and what was not?

What you did in your groups, is what governments do everyday. They must determine what they are going to provide for their societies based on the money (taxes) they collect. Some governments provide extensive goods and services for their societies and are very involved in economic decisions making. In other economic systems governments have more of a “hands off” approach to economic decision making by allow the private sector (businesses), and consumers make economic decisions. Governments base these decisions on the needs and wants of their societies as well as the values and belief system of the country they are running.

Chapter Task: Essay You will be writing a social essay on the topic: “Should Canada and the United States have a common economic system with little government involvement?” Read page 196 for further details on this chapter task.

Prepare for your essay by: Economic Systems Market USA Mixed Canada Benefits of this Economic System + Disadvantages of this economic System - My informed position: Based on research and evidence, Canada and the U.S. should/should not have a common Economic system because… The strongest pieces of evidence to support my position are: Re-reading notes on social essay. Memorizing a brainstorming technique. Researching economic systems in Canada and the USA. Create a chart to organize the information you gathered on these 2 economic systems. Market (USA) vs. Mixed Economy (Canada)

Analyzing Photographs Look at the pictures on page 195. Then discuss as a class: How does economic decision making affect the jobs available to you and your family? Why might Canada’s government own a company? How might economic decision making and Canadian identity connect? 3. How are the economies of Canada and the USA separate but connected? Glossary Add this term to your glossary sheets Crown Corporation

Timbit Discussion What problem did we encounter with the Timbits? 2. Why does this problem exist? 3. How could we have distributed the Timbits differently, if we knew the amount was limited? 4. What values would we base these decision about distribution on?

Timbit Discussion Answers There was a shortage of timbits The amount of Timbits was limited and there were many students that wanted them. Could have counted the number of students and Timbits and then split them in half if there was not enough. Could have sold the Timbits to those who wanted to pay for them. You could offer someone who did not have a Timbit yours. No one gets any Timbits because there is not enough to go around therefore not fair to everyone. 4. Base our decisions on who gets the Timbits on the values of; generosity, sharing, greed, avoiding conflict, fairness, first come, first served.

Scarcity The Timbits symbolizes a major problem that all societies face: Scarcity When faced with scarcity, people and societies must make choices about how resources will be distributed. In mixed and market economic systems, consumers, producers, and governments make these decisions.

Viewing Rising Food Prices Threaten Millions Watch the CBC news video on rising food prices in the world. Pay attention to how the video relates to what you know about supply and demand.

Viewing View the following video on Supply and Demand in a Market Economy K:\Video\Social Studies\Social Videos\Grade 9\Economics\Clip. The Marketplace Supply and Demand.asx

Economics in Action Glossary Read the cartoon on page 199-201. Add the following terms to your glossary sheets Scarcity Factors of Production Land Labour Capital Supply Demand Read the cartoon on page 199-201. Then answer the 4 questions at the bottom of page 201.

Basic Economic Questions In economics, the idea that resources are limited are called scarcity. The basic questions of economics are about how to solve scarcity. What is needed or wanted? (What goods should be produced?) How will it be produced? Who will get it? *The decisions we make about these questions create issues that affect our quality of life.

Viewing Watch the following video clip on Resources and Choices. K:\Video\Social Studies\Social Videos\Grade 9\Economics\Clip. Resources and Choices.asx

Viewing K:\Video\Social Studies\Social Videos\Grade 9\Economics\Economics The Production Distributionand Consumption of Goods and Services Money.asf K:\Video\Social Studies\Social Videos\Grade 9\Economics\Economics The Production Distributionand Consumption of Goods and Services Resources.asf K:\Video\Social Studies\Social Videos\Grade 9\Economics\Economics The Production, Distribution and Consumption of Goods and Services Consuming.asx K:\Video\Social Studies\Social Videos\Grade 9\Economics\Economics The Production, Distribution, and Consumption of Goods and Services Needs and Wants.asx K:\Video\Social Studies\Social Videos\Grade 9\Economics\Economics The ProductionDistribution and Consumption of Goods and Services Producing.asf

What is an Economic System An economic system is a way to solve the basic problem of scarcity. Different ideas and values result in different economic systems. Governments decide what they are going to own in society and what goods and services they are going to provide to society. What they choose not to own, produce or provide is then provided by private companies.

The Economic Continuum Read the Economic Continuum on page 204 before starting your glossary words. Glossary Privately owned Publicly owned Planned Economy Mixed Economy Market Economy

Case Study: Canadian Economic History versus U.S. Economic History In groups of 2 Read the section on pages 205-208. After reading, create a graphic organizer comparing the 2 systems. Then individually complete the worksheet Handout 6-9. At the back of this worksheet, answer the Critical Thinking Challenges on page 205,206,208 in complete sentences. Glossary Shift Left Shift Right Public Good Cooperation Individualism Crown Corporations

Class Discussion: Founding Principles Canada’s Founding Principle: “Peace, order and good government.” America’s Founding Principle: “Life, liberty and the pursuit of happiness.” Analyze these founding principles. Then Discuss: What do they suggest about the values that each country holds? How do these values relate to each countries economic system? Which founding principle do you prefer or connect to the most?

Analyzing Quotes Living next to the [United States] is, in some ways, like sleeping with an elephant. No matter how friendly and even tempered the beast, if I can call it that, one is affected by every twitch and grunt… Former Prime Minister Pierre Elliot Trudeau

Analysis Questions What did Prime Minister Trudeau mean by his comparison? To what extent is the United States effected by events in Canada? To what extent is Canada effected by events in the United States?

How do Market Economies Work? Read through pages 209-213. As you are reading complete a chart that shows the advantages and disadvantages of a market economy. Be prepared to discuss your chart with the class. A Market Economy Advantages Disadvantages + -

Class Chart: Market Economy A Market Economy Advantages Disadvantages + -

Supply and Demand Glossary Consumers Demand Producers Supply Competition Walk in Assignments 1. What if the supply of a product went down? How would that affect price and demand? 2. Why might demand for a product go up? For example, what role might the market play in demand?

Competition Monopoly versus Competition The opposite of competition is a monopoly. A monopoly happens when one producer controls all supply of a product or service. Governments sometimes create monopolies as a way to provide essential services that require expensive infrastructure. In some cases, governments intervene to prevent monopolies and restore competition among producers. In the United States, Microsoft Corporation had to adjust its software product Windows to allow compatibility with browsers other than its own Internet Explorer.

Viewing CASE STUDY- Anti-Trust Laws: The American Government sues Microsoft K:\Video\Social Studies\Social Videos\Grade 9\Economics\Monopolies_and_Anti_Trust_Lawsuits.wmv K:\Video\Social Studies\Social Videos\Grade 9\Economics\Microsoft_and_Netscape__Battle_Begins.wmv K:\Video\Social Studies\Social Videos\Grade 9\Economics\Microsoft_Fights_Back.wmv K:\Video\Social Studies\Social Videos\Grade 9\Economics\Microsoft_Triumphs.wmv

Why do governments get involved in market economies? To protect public safety. (example: safety standards on vehicles) To protect consumers from unfair business practices. (example: insurance companies taking advantage of consumers) To inform consumers. (example: ingredients listed on products) To break up monopolies and allow for competition in the market. (example: American government suing Microsoft) To protect consumers from price fixing.(chocolate bar manufacturers)

Analyzing Photographs Look at the photographs and read the captions on page 214 and 215. In groups of 3-4 write a summary of the level of government involvement in each situation. Discuss to “what extent do you agree with the level of government involvement in each situation?” Then, think of an effective headline or title for each photo.

Connect to the Big Ideas Your teacher will provide you with a newspaper or magazine. Your task; is to find a article that shows government involvement in the economy in either Canada or the United States. Then complete the “spot the issue” worksheet. (this will be taken in for a mark). Keep the following questions in mind when choosing an article. 1. What circumstances triggered the government to be involved? 2. What impact does the government does this government involvement have on citizenship, identity and quality of life for others?

Case study #2: The Case of the Disappearing Jobs Read the case study #2 on pages 226-228. Then in Groups of 4 you will then discuss the following questions and record your discussion on the second box on handout G-5. How does supply and demand impact job creation or job loses? Why would “spin-off” jobs be impacted in a community if a factory shut down? Should Canada’s government help create and protect jobs? Based on the map on page 228, Why might views about government’s role in creating or protecting jobs differ regionally in Canada? How might relocating to find work affect the identity of individuals? How might it impact their quality of life?

Case Study #3: The Case of the Workers’ Strike Read the case study #3 on pages 229-235. Then in Groups of 4 you will then discuss the following questions and record your discussion on the third and fourth Box on handout G-5. Why do strikes happen? How do they affect quality of life? From whose perspective?. Why do workers and unions need to bargain with each other? How can the Supreme Courts decision on collective bargaining impact the government in a negative way? How does this decision reflect the values outlined in the Charter of Rights and Freedoms?

Glossary Unemployment rate Strike Labour Unions Collective Bargaining Connect to the Big Ideas Read the letters to the editor on page 233. Then complete questions #1,2 page 233.

Viewing K:\Video\Social Studies\Social Videos\Grade 9\Economics\Understanding Economics.asf

202,205,206,207,208,209,211,212,213