1. Do you think that inequality between rich and poor is something that should be addressed by the government? Why or why not?

2. Equity refers to fairness in society
Equity refers to fairness in society. It typically refers to the distribution of goods and services among people. In a highly unequal society, almost all of the wealth is in the hands of only a small percentage of the population. In a perfectly equal society, wealth is equally distributed among the people.

4. In addressing the issue of equity, another factor that is often taken into consideration is that of need. Some in society may have special needs (medical needs, etc.) that are different than others. For example, the elderly may need more medical care than someone that is young and healthy.

5. Karl Marx
“From each according to his ability, to each according to his needs.”
How does this quote reflect the issue of equity?

6. Hayek
“Even the striving for equality by means of a directed economy can result only in an officially enforced inequality - an authoritarian determination of the status of each individual in the new hierarchical order”
What is Hayek’s view toward the issue of equity?

7. What are some of the ways in which the government currently tries to address the issue of equity in the economy?

8. The IMF, World Bank, USAID address this issue

9. What is foreign aid?
Foreign aid is any international transfer made on especially favorable terms for the purpose of economic development.
Types of Aid:
Bilateral Aid: Country-to-country aid
Multilateral Aid: aid that goes through internal organizations (World Bank)

10. What’s the World Bank?
The World Bank provides grants and loans to benefit development.
Includes aid for a variety of things:
Health
Education
Infrastructure (roads, dams, and communication networks!)

11. What’s the IMF?
The IMF (International Monetary Fund) extends loans to countries that have trouble paying back their balance of payments.
What’s a balance of payment?

12. What’s USAID?
The US Agency for Internal Development (USAID) which is apart of the State Department mission is to:
Further America’s foreign policy interest in expanding democracy and free market economy
To improve living standards in the developing world

13. Discuss in your groups! Do you believe that the US government should intervene in other countries economies? Why or why not??

14. Has this been effective?

15. You decide!
Read the article and take an evaluative stance on the necessity for US economic intervention with countries in need.