1
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- Before working with this presentation you might like to look at ‘The
short economic history of post war world - its elsewhere on this site.’
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2
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- Natural resources including the climate
- Labour - productive - look at presentation on immigration
- Economic swings have been met with ability to accept lower wages
- Protestant work ethic
- high value on education and an ability to cope with change
- Human capital is a key factor to success
- nimble minds and adaptable skills
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3
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- Organisation very important
- market signals lead policy
- division of labour/scientific management
- now being flattened
- Funds accumulation very successful
- stocks and bonds popular investments for all
- Federal and state rules govern financial behaviour and information
disclosure
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4
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- The role of the market in a mixed economy
- private ownership
- two-thirds of output goes to personal consumption
- it is a consumer economy
- Personal freedom central
- supply and demand decide what is produced and at what price
- Some goods/services are best provided by State
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5
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- Public goods include most education, justice, roads, social statistics
and the reporting of these, defence
- Government regulates monopolies
- Government provided medicare for the elderly and the poor, regulates
environmental issues,provides loans for those in natural disasters and
drives the space programme
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6
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- Consumers send signals through purchases and are now stating what they
will accept in health, safety and ethical issues
- Labour force has changed from farm based to city based, then onto
service based.
- Trend away from self-employment to working for others
- Next: The role of government in the economy
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7
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- Stability and growth
- maintaining macro stability
- this began as a fight against recession and has moved onto controlling
inflationary pressures
- In 1960’s more emphasis on fiscal policy, now monetary policy is main
tool
- All monetary policy directed by Federal Reserve Board
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8
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- Regulation and Control
- two main types - controlling prices and anti-trust laws, which control
competitive behaviour
- social goals also set
- These include: public health, safety and the environment
- De-regulation arose during 1970’s
- Stop support for inefficient industries
- promote change in technology based industries
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9
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- Direct services
- national defence
- research and development
- local and regional re-generation
- Direct Assistance
- low-cost loans
- Technical assistance to small firms
- promote exports
- seek to stop others putting up tariffs
- Medicare and Medicaid
- Food Stamps
- success is not God’s favour
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10
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- Poverty persists in the richest nation on earth
- Government decides what equals ‘poverty’
- In 1998 a family of four was in poverty below $16,530
- 13% of population classified as this
- Masks reality of ethnic poverty
- 26.1% African-Americans
- Single parent families, 1 in 5 children live in poverty
- 36.7% of African-American children live in poverty
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11
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- 34.4% Hispanic children live in poverty
- In 1997 the wealthiest 20% of population accounted for 47.2% of nation’s
income,
- poorest 20% accounted for 4.2%
- The poorest 40% accounted for 14% of nation’s income
- Increased global competition making more workers vulnerable
- tax system now less favourable for the poorest
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12
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- What has happened to the spirit of New Deal?
- Increased dislike of big government, high spending, large tax bills
- resulted in cuts in social welfare spending
- Privitisation introduced
- Familiar battle of opinions - efficient v must make a profit, so what is
cut?
- Election of Bush suggests that de-regulation, lower Federal spending and
welfare reform have won
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