1. Business, Government and Workers Ch:21
Business produce, make profits and grow
Governments provide their laws and ours
Market economy produce when profitable
Capitalist vs Communist
Capitalist is free markets and freedom to make as much money as possible. Gov minimal control
Communist: More government ownership and control. In theory wealth is shared evenly. In practice, greed wins out.
Role of Government
Protects people and business by laws
Supports public and business by grants

2. Quests
Communist versus Capitalist?
Role of government?

3. Market economy failures V Gov remedies
Business
Will not create anything without profit
Don’t worry choices, prices + Fire people
Government
Bus and rail
Libraries, art galleries and parks
Environment protection laws
Competition authority to monitor business
try to increase jobs and standard of living

4. Q
Business v government?

5. Government Structure Local Central
County councils, city corporations and urban district councils
Central
Dail(TD’s): revenue and spending,new laws
Seanad(Uni senators + C.C): Approve laws
President signs it into law

6. Government Spending and Revenue
The yearly budget is where finance minister outlines planned targets of S and R.
Current revenue budget:
4 taxes and borrowing
Current spending budget:
civil service jobs, debt interest, social welfare, health, education, pensions, grants

7. Structure?
Spending?

8. Fiscal Policy and PPF Capital spending
infrastructure for traffic, I.T, broadband etc..
Capital revenue comes from borrowing
Fiscal Policy:
How government plans to make and spend
low corp tax, MS, Inflation,interest, infrastructure
Programme for prosperity and fairness
national wage agreements

9. Whats fiscal policy?
PPF?

10. Local Government role Provides For public Business
suitable land Housing for workers
housing Drainage and Sewage
waste disposal Infrastructure
roads Enterprise boards
harbours

11. Impact of Economy on business
Good economy, business does well, economic growth
Economy well being is determined by
employment
interest rates
inflation
exchange rates
Taxation
Political vision, control and laws

12. Q
How does local gov help us?
…. Businesses?

13. Unemployment Over 430,000 currently unemployed
Less workers less taxes, taxes go up
less taxes less money for spending
Grants attract foreign business
Taxation: (good if cty can afford to reduce)
lower tax encourage people to work
less money for spending
prsi paid by firm and workers insures workers
Carbon taxes can help environment

14. Interest rates and Inflation
A) bank money saved B) loans to people and business
When interest rates are low people can borrow more cheaply. Europe banks gave Ireland cheap rates on loans. Our banks gave out 100% mortgages and large cheap loans to property developers. Property bubble was increased by government tax incentives and it then burst around 2008 and was the main cause of our current economic crash.
When high people save there money
Inflation is the price of goods and services
wages may increase when inflation increases

15. Exchange rates The value of a country's money.
When low your cty can sell goods cheaper and attract tourists
When high your exports are over priced
Visa versa for imports
When you buy imports, by converting our currency into foreign currency it devalues our own currency. The bought foreign will increase

16. Impact of business on economy
(+)
Employment, greater wealth, sponsorship
tax, other firms benefit, raw materials bought
(-)
raise prices, pollution, redundancies

17. Q
Taxes
Interest?
Inflation?
Exchange rates?

18. Conclusion
Business will produce when profitable, government provides the laws and business supports for jobs and public amenities.
Communist china more government influence in business than in capitalist Ireland.
There is local and Central Government. CG plan budget and fiscal policies.
CG controls economy by interest rates (ECB), inflation (competition), value of euro, taxation and policical vision.

19. Quests?? Explain business, government roles and the market economy
Failures of market economies/remedies
Outline government structure
Types of government spending and revenue
Partnership for P and F? Local government?
Economy is made up of? Inflation …...
Exchange rates and impact of business on economies and fiscal policy?????