Sociology 323

Economy & Society

February 12 – Jim Stanford Part 4

Video About Money - Bitcoin

Bitcoin Ted Talks

Bitcoin Explained

Midterm Exam

I can meet people today (Wednesday) between 11 and 3 PM.

I will NOT include chapter 21, 22, 23, or 24 from Economics for Everyone on the exam

Part 5 of Economics for Everyone is NOT on the exam

Study hard!

The Role of Government

Conservative – Neoliberal Policies = Smaller government, claw-back social programs, less government regulation for business, privatization of national businesses, lower taxes.

Progressive – Leftist Policies = Larger government, more government regulation of businesses, progressive tax system, more social programs.

Capitalism developed along with the nation state. Governments were necessary for capitalism to develop.

– Property laws– Military– Standardization of units of measure– Development of public infrastructure

10 Ways Government Serves Business

The Role of Government

Economic and Social Goals that Governments may Pursue when Pressured

- Redistribute income- Stimulate employment and overall economic activity- Provide products and services- Subsidize products and services- Regulate

Economic Tools Used by Governments- The legal system- Monetary policy- Fiscal policy- Service delivery- Labour market and social policy- Competition policy- Technology policy- Industrial policy - Public ownership- Foreign relations and international trade policy

Taxes

Government spending

Canadian Budget 2014

Corporate Welfare - Industry CanadaCorporate Welfare - All Canadian Governments

Taxes

Spending

Interest paymentsProgram spendingTransfer paymentsDirect government productionPublic consumptionPublic investment

Taxing

Income taxesSales taxesPayroll taxesWealth taxesEnvironmental taxNon-tax revenue

The Big Picture

Taxes

Neoliberal PolicyCut income security programs

Privatize public institutions

Abandon counter-cyclical fiscal policy

Reducing income, wealth, and business taxes

Regressive vs Progressive Taxes

Impact of government spending can be measured in three stages.

1 – Market income2 – After-tax-and-transfer income3 – Real consumption

How should people and corporations be taxed in Canada?

Where would you spend the tax money?

Discussion