The UK Economy

3.1.2- Economy and Welfare Systems

Starter… Un-jumble

• XAT• TINDERIC• DTICRE• EESICX• CNOORIPTOAR• RDOA• TAV

CAN YOU DEFINE THEM TOO?

The National Economy

• Define:

………………………………………………………………………….

The Government

• Chancellor of the Exchequer:

………………………………………………………………………….

• Bank of England:

………………………………………………………………………….

Inflation and Deflation

• A lot of money circulating in the economy can cause prices to rise sharply. A continuing rise is called ____________.

• With money low, prices drop, borrowing decreases and the economy suffers, this is called _____________.

Taxes…

• Government raises money through taxes- they pay for public services

• Public Accounts Commission keeps a careful watch on public spending.

Direct and Indirect- put the information in the right boxes

• Direct • Indirect

Income tax, Capital Gains tax Corporation Tax, VAT, Inheritance tax,,

road tax, National Insurance

What do taxes pay for?

• • • • •

Special taxes?

• Do they prevent? Reduce?

Public and Private

• Public • Private

5 Social Evils…

1.

2.

3.

4.

5.

5 Evils…

• Squalor Filth• Ignorance Lack of knowledge• Want Poverty• Idleness Lack of work• Disease Sickness

Employee and Employers

• There are many laws that aim to protect the rights and responsibilities of both employees and employers.

Employers and Employees

• What employees want: • What employers want:

Trade Unions:

• The first trade unions were set up in the 18th Century to help workers negotiate pay. Today Unions also act to represent their members in many different aspects of work such as claiming their legal rights.

• Can you name any trade unions?• Do workers need protection from a union?

What can a trade union do for you?

• Choose the correct answers from the list below:• Negotiate on your behalf to improve the pay and

conditions of workers in an industry or business.• Liaise with the management of a business on your

behalf if you feel you have been unfairly treated.• Prevent you from getting the sack.• Stop an employer from shortening your lunch time.• Arrange industrial action such as a sit in, boycott or

strike if they cannot negotiate a settlement.

Minimum Wage:

• In April 1999, a minimum wage was put in place in the UK. Since then it has been raised several times. There are different minimum wages for people at different ages: no minimum for people aged under 17, a lower rate for those 18 to 21 and a higher rate for those over 22.

• Should young workers get the same pay as older workers?

• Which new piece of legislation might make this inevitable?

What should it be?

• 16-17 yr olds?• 18-21 yr olds?• 22- over?

Minimum Wage…

• 16-17 year olds £3.57-£3.64• 18-20 year olds £4.83-£4.92• 21 and over £5.80-£5.93

Dismissal:

• Before 1971, employers could sack anyone from a job whenever they wanted to….They only had to give notice. Today people have many more rights where their status is concerned.

Which five of the following do you think are real grounds for dismissal?

• Employee misconduct (theft, fighting or persistent lateness)• Employee is unable to get on with other workmates• Family emergencies – a person takes a reasonable amount of

time off to deal with an emergency.• Incapability, the employee cannot or does not do the job to

the required standard.• Redundancy – the job no longer exists.• If the employer has found someone better for the post.• Being pregnant• So as not to break the law eg: a van driver who has lost her

licence for a drink driving offence.• Being a member of a trade union• Any good reason.

WHO WANTS TO BE AN A GRADE STUDENT?

Sample examination question…

• Practice question: “All people doing the same job should be paid the

same”Do you agree? Explain your answer and show that you

have thought about different points of view. (12)

I agree / disagree / partly agree because ……. (1-4)Some people would disagree because ……. (5-8)Other people might agree because …….. (9-12)