1 / 43

The ECONOMY

The ECONOMY. The ECONOMY - a system by which goods and services are produced, sold, and bought in a country or region. The ECONOMY . Who would ever think that a word with such a dull definition could be the source of contentious discussion, dispute and debate?.

sachi
Download Presentation

The ECONOMY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The ECONOMY

  2. The ECONOMY - a system by which goods and services are produced, sold, and bought in a country or region. The ECONOMY Who would ever think that a word with such a dull definition could be the source of contentious discussion, dispute and debate?

  3. When the ECONOMY is doing well citizens; find a job earn livable wages buy goods with cash and wise use of credit enjoy a high standard of living The ECONOMY BUT WHAT SYSTEM OR APPROACH IS MOST LIKELY TO SECURE THE ABOVE?

  4. Capitalism Socialism Competing Economic Systems

  5. Capitalism An economic / political philosophy that believes the government should distribute wealth and services equally the government should own institutions so that equal public access is allowed. • An economic / political philosophy that believes in small government and • Privately owned businesses • Wages determined by market forces • Profit motivation Socialism

  6. More Entertaining Definitions • CAPITALISM: You have two cows. You sell one and buy a bull. If you do this well, have some good luck, you can drink a lot of milk. • SOCIALISM: You have two cows. The state takes one (or at least the milk) and give it to someone else – determined to be in need of milk. • COMMUNISM: You have two cows, both owned by the government. The government gives you milk.  • FASCISM: You have two cows. State takes both of them, and gives/sells you milk, maybe, if you follow the party line.

  7. Anti- Capitalism View

  8. Anti- Socialism View

  9. TAXES There are only two things guaranteed in life; death and taxes. Both are unpleasant.

  10. Progressive: The tax is collected with consideration to your income. TYPES OF TAXES Regressive: The tax is collected without consideration to your income Flat: The tax is collected without consideration of deductions (#of children, mortgage interest …) nor your wealth.

  11. Progressive: Federal IncomeState IncomeRegressive:Property (Town)Sales (State) Other:Fees (State and Local) Penalties TYPES OF TAXES

  12. Federal Income Tax The NATIONAL government deducts money from your pay. State Income Tax: The STATE government deducts money from your pay. Progressive Income Tax National Income Tax Rate for 2011

  13. Sales Tax:States tax your purchases. This is sometimes referred to as a consumer tax. Regressive TaxesSales and Property Tax (and fees) Property Tax: The state and/or local government tax the worth of your home and car.

  14. State Sale Tax Rate for 2009

  15. Government Budgets / Services • Government taxes are collected to pay for government services (military, welfare, education …) • How much money (taxes) is needed depends in large part to how many government services the citizens are willing to pay for. • The relationship between all these factors determines the government’s budget and subsequent tax rate (how much money they need from citizens.) • When the government’s revenues (taxes) do not amount to the cost of services, they deficit spend. This is like taking a loan for the future which causes debt.

  16. National Government Expenses

  17. Anentitlement is the right to a particular privilege or benefit, granted by law or custom.  National Government ExpensesEntitlements • Entitlement government programs include: • Social Security • Medicare • Medicaid • Welfare

  18. Primarily a government pension program. • Created in 1935during the Great Depression. • Social Security is funded through payroll taxes. Social Security Looming Social Security Crisis

  19. Federally funded health care for citizens aged 65 or over • Created in 1965. • Medicare is funded through payroll deductions. Medicare Looming MedicareCrisis

  20. Government programs are expensive. • Funding these programs requires higher taxes. Deficit Spending andDebt • Raising taxes or cutting services makes government officials unpopular. • Perhaps related, often the government deficit spends(spend more $ than they collect.) • Deficit spending creates debt, with interest.

  21. The Rhode Island budget includes: • Education • Transportation • Health • Welfare • Protection • Pension State Government Expenses

  22. The North Kingstown budget includes: • Education • Police • Fire • Recreation • Government Local Government Expenses

  23. So, there are economic challenges in our society. How do we solve them? Conservatives vs. Liberals

More Related