Module 1: Economic Systems in Canada and the United States
Section 1: Market and Mixed Economies
Lesson 3 - Page 3
Government Involvement in the Economy
Government Involvement in the Economy
Respond to the “Think critically” question on the bottom of page 207. How might a Crown corporation impact identity? Share your response in a discussion forum. Examine at least two responses from other students. Consider the similarities and differences in the responses. Add your response to your Government Involvement in the Economy handout.
The federal government wants all citizens to have the opportunity to see what is happening in the economy and how the government is involved. This information is shared online on a government website called Canadian Economy Online.
Open an Internet web browser and search engine. Enter the key search terms “Canadian Economy Online.” Do an overview of the government website to find out what information is available. Are you able to find key economic statistics such as Unemployment Rates, Gross Domestic Product (GDP), imports, and exports? What are these economic statistics today? Take a closer look at the section titled “Government and Economy” under “Resources” in the side menu. View how the government involves itself in economic decision making for Canada. Place any new or important information you have learned at this website into your Government Involvement in the Economy handout.
Take a moment to add the definitions for the terms public good, shift left, shift right, unemployment rate, gross domestic product, imports, and exports to your Issues for Canadians Definitions handout. Be sure to write the definitions in your own words. As you continue to investigate economics, add to your definitions using symbols and icons as you continue to develop an understanding of these terms. Place your handout back into your Portfolio when you are done.
In general, the United States follows a policy reflecting the belief that government should have minimal involvement in the economy. As you learned in Lesson 1, this is called a market economy. The government’s main role in this type of economy is to allow individual businesses to succeed or fail on their own. Government only gets involved in the economy when challenges of national concern arise. These concerns might include environmental issues, competitive marketplace, and protection of the nation.
Such an example occurred in 2008 and 2009, when the American and world economies struggled greatly. The president of the United States was required to step in and support industries, such as banks and automobile manufacturers, so that these industries would not collapse and leave millions of Americans without employment.
unemployment rate: the percentage of the working-age population that is unable to find employment at a given time
gross domestic product: the total dollar value of goods and services that are produced in any given year within a nation’s borders
imports: goods and services purchased from outside of the nation
exports: goods and services made in a nation and sold to other nations
The federal government wants all citizens to have the opportunity to see what is happening in the economy and how the government is involved. This information is shared online on a government website called Canadian Economy Online.
Open an Internet web browser and search engine. Enter the key search terms “Canadian Economy Online.” Do an overview of the government website to find out what information is available. Are you able to find key economic statistics such as Unemployment Rates, Gross Domestic Product (GDP), imports, and exports? What are these economic statistics today? Take a closer look at the section titled “Government and Economy” under “Resources” in the side menu. View how the government involves itself in economic decision making for Canada. Place any new or important information you have learned at this website into your Government Involvement in the Economy handout.
Take a moment to add the definitions for the terms public good, shift left, shift right, unemployment rate, gross domestic product, imports, and exports to your Issues for Canadians Definitions handout. Be sure to write the definitions in your own words. As you continue to investigate economics, add to your definitions using symbols and icons as you continue to develop an understanding of these terms. Place your handout back into your Portfolio when you are done.
In general, the United States follows a policy reflecting the belief that government should have minimal involvement in the economy. As you learned in Lesson 1, this is called a market economy. The government’s main role in this type of economy is to allow individual businesses to succeed or fail on their own. Government only gets involved in the economy when challenges of national concern arise. These concerns might include environmental issues, competitive marketplace, and protection of the nation.
Such an example occurred in 2008 and 2009, when the American and world economies struggled greatly. The president of the United States was required to step in and support industries, such as banks and automobile manufacturers, so that these industries would not collapse and leave millions of Americans without employment.
unemployment rate: the percentage of the working-age population that is unable to find employment at a given time
gross domestic product: the total dollar value of goods and services that are produced in any given year within a nation’s borders
imports: goods and services purchased from outside of the nation
exports: goods and services made in a nation and sold to other nations
Read
Consider how events in United States history have shaped the way that the public good is achieved in the United States. Examine “The U.S. Economy” on page 208 of your textbook to view some examples that reflect the ideal of public good and individualism.
Again, depending on the political party that is in power, there will be a shift in the role of government in the economy. When the Democratic Party is in power, as it was from 1933 to 1944, the government made a shift left. When Ronald Reagan, who was a Republican, was president, there was a shift right. What changes occurred during each of these time periods to reflect the shifts? Place your thoughts into your Government Involvement in the Economy handout.
Why does government get involved in the economy? Read “Why do governments get involved in market economics” on pages 214 and 215 of the textbook. As you read, consider what the economy and your quality of life might be like if government was not involved. Place your thoughts in your Government Involvement in the Economy handout.
Consider how events in United States history have shaped the way that the public good is achieved in the United States. Examine “The U.S. Economy” on page 208 of your textbook to view some examples that reflect the ideal of public good and individualism.
Again, depending on the political party that is in power, there will be a shift in the role of government in the economy. When the Democratic Party is in power, as it was from 1933 to 1944, the government made a shift left. When Ronald Reagan, who was a Republican, was president, there was a shift right. What changes occurred during each of these time periods to reflect the shifts? Place your thoughts into your Government Involvement in the Economy handout.
Why does government get involved in the economy? Read “Why do governments get involved in market economics” on pages 214 and 215 of the textbook. As you read, consider what the economy and your quality of life might be like if government was not involved. Place your thoughts in your Government Involvement in the Economy handout.
Assignment
Respond to “Critical Thinking Challenge” on page 215. Post your response to a message board in your discussion forum. Find out how other students responded to the “Critical Thinking Challenge” question.
Add your response to your Government Involvement in the Economy handout. As well, take the time to consider what similarities and differences exist between how the Canadian and the United States governments are involved in their respective economies. Then place your handout into your Portfolio.
How does the Canadian government and the United States government deal with economic issues?
Respond to “Critical Thinking Challenge” on page 215. Post your response to a message board in your discussion forum. Find out how other students responded to the “Critical Thinking Challenge” question.
Add your response to your Government Involvement in the Economy handout. As well, take the time to consider what similarities and differences exist between how the Canadian and the United States governments are involved in their respective economies. Then place your handout into your Portfolio.
How does the Canadian government and the United States government deal with economic issues?
Read
Turn to the following case studies in your textbook:
Use the graphic organizer Case Study Analysis to summarize the main points and collect interesting quotes. Consider what benefits Canadians experience as a result of government involvement. Place your thoughts on this matter in the Other Issues column of the handout.
Turn to the following case studies in your textbook:
- “Case Study 1: The Case of the Canadian Filmmaker” on pages 219 to 225
- “Case Study 2: The Case of the Disappearing Jobs” on pages 226 to 228
Use the graphic organizer Case Study Analysis to summarize the main points and collect interesting quotes. Consider what benefits Canadians experience as a result of government involvement. Place your thoughts on this matter in the Other Issues column of the handout.
Assignment
Write a Journal Entry for this question: How has government involvement in the economy affected me? Respond in thoughtful and complete sentences.
Write a Journal Entry for this question: How has government involvement in the economy affected me? Respond in thoughtful and complete sentences.