Example notes:Decline of manufacturing and employment

in post-industrial countries (RB, p 23)EMPLOYMENT PER SECTOR OVER TIME (pg. 1)

200 years ago - mostly agriculture↓

(Advanced) - depend on secondary industrialised countries sector for employment

↓

Post-industrial countries - mostly tertiary sector (manufacturing → developing

countries)

DECLINE OF MANUFACTURING≠ UNEMPLOYMENT (pg. 2,3)Need for physical objects → main activity: manufacturingNeeds satisfied → main activities: design, art, marketing

SERVICES – THE LATER STAGE OF EMPLOYMENT (pg. 3, 4)- design, art, entertainment, amusement – new jobs e.g. U.S.A., London, Paris, NY

Manufacturing and servicesI EMPLOYMENT BY SECTORS OVER TIME (pg 1)

200 years ago vs. Today ↓ ↓agriculture service industries →

growth

II NO MORE DEPENDENCE ON HEAVY INDUSTRY (pgs 2-4)

- physical needs = satisfied → newest concern: DESIGN- new jobs in art, entertainment, music, amusement

(e.g. New York, Paris, London)

III CONCLUSION (pg 5)- needs and consumption = constant change

jobs in NEW sectors and industries=SOCIAL DEVELOPMENTS

Homework

• loss of manufacturing ≠ unemployment– E.g. UK

• design & entertainment → new jobs

important parts of economics = fact

The Role of Government

Free to Choose by Milton and Rose FriedmanReading MK, p 109-110Answer the comprehension questionsList examples they provide of govt. legislation:How far do you agree with the Friedmans?

The Role of the Government, cont.• → RB, p 36

I Read and say: What areas does Galbraith describe as responsibilities of the state?

• II Answer the questions:What does G. say about those who criticise govt. services?Why is the market system not sufficient to guarantee scientific research?How would you characterize Galbraith’s politics?

• Read the definition of the welfare state. What is the term that Galbraith uses for the same concept?

HW: Compare Galbraith’s (RB, p 36) and the Friedmans’ (MK, p 110) points of view on the role of government in NOTE FORM. Hand in: Mon, 17 Nov, 2014

• All government spending has to be paid for by.... taxes.

Taxation

TAXATION, MK, U 22

Tax, n. (U C) Money that you have to pay to the government according to your income, property, goods etc.

Tax, v. (T) to make a person or organization pay tax.

E.g. The govt. taxed the shareholders on the dividends they receive.

The shareholders get/are taxed on the dividends.

(Longman Business English Dictionary)

CHOOSE THE RIGHT WORD1. The main purpose of taxation is to

raise / rise revenue for government spending .

2. Taxes also reduce / provide inequality through redistribition.

3. Taxes are decreased / levied for the purpose of repricing.

4. A consequential effect of taxation is representation (rulers tax / levy citizens, and citizens demand accountability from their rulers).

CHOOSE THE RIGHT WORD1. The main purpose of taxation is to

raise / rise REVENUE for government spending .

2. Taxes also reduce / provide inequality through REDISTRIBITION.

3. Taxes are decreased / levied for the purpose of REPRICING.

4. A consequential effect of taxation is REPRESENTATION (rulers tax / levy citizens, and citizens demand accountability from their rulers).

The Four “R”sFour main purposes of taxation

Revenue, ____________, Repricing & Representation

1. Revenue: taxes r______ money to spend on public goods and g___________ functions (e.g. market regulation or legal systems).

2. R____________. Transferring wealth from the richer sections of society to poorer sections.

3. Repricing. Taxes are l_________ to address externalities: tobacco is taxed, for example, to discourage smoking.

4. Representation. “No taxation w_________ representation!" =

rulers tax citizens & citizens demand accountability from rulers

The Four “R”sFour main purposes of taxation

Revenue, Redistribution, Repricing & Representation

1. Revenue: taxes raise money to spend on public goods and government functions (e.g. market regulation or legal systems).

2. Redistribution. Transferring wealth from the richer sections of society to poorer sections.

3. Repricing. Taxes are levied to address externalities: tobacco is taxed, for example, to discourage smoking.

4. Representation. “No taxation without representation!“ =

rulers tax citizens & citizens demand accountability from rulers

→ MK, p 112 – Vocabulary

Vocabulary, MK p 112

1 income tax Note: flat rate of income tax

2 direct tax (the same for everybody)

3 progressive tax – the more you earn the more

4 indirect tax tax you pay5 value-added tax Pls. Compare flat rate tax

6 capital gains tax with progressive tax

7 inheritance tax

8 wealth tax

9 tax evasion 11 tax havens

10 tax avoidance 12 a loophole

→ MK, p 113

TAXATION, MK p 113

In favour 1 3 6 7 10 12 13

Against 2 4 5 8 9 11

Which of the statements you find the most convincing and why?

RB, p 38

II Scan the text and match the headings with the paragraphs.

HW, read Dodger Mania and do tasks on pp 40-41 (questions, vocabulary and mind map)