Lesson Six The Role of Government in Michigan’s Economy The Economy of Michigan Unit Two:

WORD Card Match-UP Choose three cards that “belong together”.  economics – economy – economic activities  natural resources – capital resources – human resources  agriculture – manufacturing – tourism  specialization – trade – interdependence  scarcity – limited resources – unlimited wants  trade – export – import  wind turbine – wind farm – specialization  economic activity – tourism - tourist

The BIG Ideas  The state government of Michigan plays a role in Michigan’s economy.  The state government provides public goods and services such as state parks, highways, and state police.  To pay for these public goods and services the state government collects money from taxes, fees, and fines.

public goods and services goods and services that are produced and provided by a government Example: State parks, state police, and state highways are some examples of public goods and services provided by Michigan.  These are things private companies are either unwilling or unable to produce.  Examples of public services in your community include: a park, a library, snow removal, etc.  The state of Michigan provides public goods and services also. These are for all the citizens of Michigan.

Source: Chippewa, Luce and Mackinac Counties Map. Department of Natural Resources website.19 August

Michigan Counties in the Upper Peninsula  What are three different goods/services provided by the state of Michigan according to this map?  Why do you think the state provides these?  Why do you think this area of Michigan has so many State Forest Campgrounds?  Have any of you ever visited a State Park or State Forest Campground? If so, where was it and what was it like?

Access the following website and download the map for the area of Michigan This will allow us not only to see the state parks, state forest campgrounds and trails near them but also compare their region to that of the three counties in the Upper Peninsula.

Some Goods and Services the state of Michigan provides.  State roads  Trails  campgrounds  State parks  State police  Water testing of lakes  Fishing access sites  a Historical museum in Lansing  Forest management  Bridge repair  Highway repair  Safety inspections on things like carnival rides

How does the state of Michigan pay for the parks, bridges, roads, and other goods/services it provides?

fees something people pay to a government in exchange for being able to do a certain activity Example: People pay fees to the state of Michigan for camping and for a fishing license.

Source: Chippewa, Luce and Mackinac Counties Map. Department of Natural Resources website.19 August  People have to pay a fee to enter a State Park and a fee to camp in a State Forest Campground.  Do you think it is fair to have to pay a fee to use a State Park or camp in a State Forest Campground?  By charging fees Michigan is able to maintain and improve parks and campgrounds.

Fees for Michigan Fishing Licenses Resident General FishingAmount Fishing, Annual (yearly)$20.00 Fishing, Junior (16 & 17 years old)$7.00 Fishing, Senior Citizen (65 years & older)$7.00 Fishing, Husband/Wife$31.00

license a legal document giving you permission to do something Example: You need a license in order to drive in Michigan.

 The state of Michigan raises money through fees to pay for the goods/services it provides.  Sometimes the state requires people to have a license in order to do a certain activity like fishing or driving.

Fees for Michigan Fishing Licenses  How much would a person aged 20 have to pay for a fishing license?  Which two groups of people have to pay only $7.00 for a fishing license?  Why do you think these two groups of people have to pay less?  What would you have to pay to be able to fish in Michigan?  Do you think it is fair for some people to pay less than others for a fishing license? Why or why not?

Since the lakes and fish of Michigan belong to everybody why should people have to buy a license in order to fish?  When you purchase a fishing license, you're helping to protect, preserve and enhance the sport of fishing for today and for generations to come.  License fees help pay for fishery and hatchery management, habitat development and protection, endangered species programs, fishing and conservation education, lake maps and other publications, and many other valuable programs.

fines what people pay to a government for breaking a rule or a law Example: People pay fines to the state of Michigan for littering.

Fines are charged to people who don’t follow rules or laws. For example, someone caught fishing without a license can be charged a fine. Someone who litters on a highway can be charged a fine.

Herby picked out a small toy at a store. The price on the toy was marked $1.00. He gave the toy to the store owner and told her he would like to buy it. The store owner told Herby it would cost him $1.06. Why did Herby have to pay the extra six cents???? Fees and fines alone do not raise all the money the state of Michigan needs to provide the goods/ services that citizens expect and want.

taxes what people pay to a government in exchange for services like schools and road repair Example: People pay sales taxes to the state of Michigan in exchange for services.

 A tax is money a citizen pays to a government in exchange for goods and services.  The extra six cents Herby paid in the scenario from Step 12 goes to the state of Michigan.  In turn, the state uses the money to do things like fix bridges, repair roads, provide libraries, and test lake water.

 The funding of state goods and services can often become a public issue, which means it is something citizens disagree about.  When the economy of Michigan is facing hard times some people want the state to raise the sales tax in order for the state to continue to provide the same level of public goods and services.  Others are against raising the sales tax.  People can even disagree over something like the cost of a fishing license. Others disagree when the fees to camp are raised.

Recently some people wanted to allow senior citizens over the age of 65 to fish without a license in Michigan. Others disagreed and said senior citizens should have to buy a license.

Should senior citizens be allowed to fish without a license in Michigan? YESNO

Should senior citizens be allowed to fish without a license in Michigan? – Sample Answers YESNO Senior citizens often don’t have much money so they should not have to buy a fishing license. Senior citizens have contributed a lot to the state of Michigan so they should be allowed to fish for free. Fishing is a healthy activity for senior citizens so they should be encouraged to fish by making it free. Letting senior citizens fish for free is one way to help senior citizens. It’s only fair that senior citizens should have to buy a license just like all other adults. Fishing license money is needed to help maintain fishing places for everybody. The fishing license is only $7.00 for a senior citizen. That’s not very much. Some senior citizens are very rich why they shouldn’t have to buy a license.

Senior citizens should not have to buy a fishing license in order to fish because… Senior citizens should have to buy a fishing license in order to fish because… Complete one of the following using examples from your T-Chart

Lesson Assessment Fee, Fine, or Tax For What? Jane’s family camped at for a week. They had to pay the park $24.00 a night to camp. Roberto and his family took a trip to the. They paid $5.00 to cross the bridge. Mr. Jones was caught dumping garbage in a. There was a “No Dumping” sign when he entered the forest. He had to pay the state of $ Sam bought a T-shirt at a gift shop on. The tag on the shirt said $ Sam had to pay the clerk $ Carol had to pay $18.00 to renew her driver’s license.

Lesson Assessment – Sample Answers Fee, Fine, or Tax For What? Jane’s family camped at for a week. They had to pay the park $24.00 a night to camp. Roberto and his family took a trip to the. They paid $5.00 to cross the bridge. Mr. Jones was caught dumping garbage in a. There was a “No Dumping” sign when he entered the forest. He had to pay the state of $ Sam bought a T-shirt at a gift shop on. The tag on the shirt said $ Sam had to pay the clerk $ Carol had to pay $18.00 to renew her driver’s license. Fee Fine Tax Fee For camping in the State Park For crossing the bridge For dumping garbage in a state forest Paying state sales tax on a good he bought To renew a license