Economic Challenges and Responses: Government Interventions & Public Goods

Unit #2: Economic Challenges and Responses

Chapter 5: Market Systems

Lesson: Government Interventions & Public Goods

  • Big Idea: Different stakeholders can have different perspectives about which economic course of action is most appropriate.

  • Framing Questions:

    • How is the value of goods determined?

    • How can consumers influence markets?

    • Why do governments intervene in market systems?

  • Overall Expectation: Students will analyse how various factors, including the practices of different stakeholders, affect markets and the value of goods (FOCUS ON: Cause and Effect; Economic Perspective).

  • Specific Expectation:

    • C1.4 Students will analyse how, in a market system, different stakeholders value public and collective goods.

    • C1.5 Students will explain the causes of Canadian government intervention in market systems.

  • Success Criteria:

    • I can define: progressive tax systems, subsidy, regulation, public ownership, public goods.

    • I can explain the purpose of a progressive tax system and who it benefits.

    • I can state who is in favor and against subsidies.

    • I can outline why regulations against.

    • I can state the advantages and disadvantages of public ownership.

Milton Friedman Quote (1979)

  • "So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system."

Milton Friedman Quote (1955) on Education Vouchers

  • "Government, preferably local governmental units, would give each child, through his parents, a specified sum to be used solely in paying for his general education; the parents would be free to spend this sum at a school of their own choice, provided it met certain minimum standards laid down by the appropriate governmental unit."

Schooling Options (Friedman, 1955)

  • Schools could be conducted under various entities:

    • Private enterprises operated for profit.

    • Non-profit institutions established by private endowment.

    • Religious bodies.

    • Some even by governmental units.

A Nation at Risk (1983)

  • "The educational foundations of our society are presently being eroded by a rising tide of mediocrity that threatens our very future as a Nation and a people."

A Nation at Risk (1983) - Metaphor

  • "If an unfriendly foreign power had attempted to impose on America the mediocre educational performance that exists today, we might well have viewed it as an act of war."

School Choice

  • Arose in response to:

    • Unequal opportunities.

    • Frustration with public schools.

  • Basic idea: Allow teachers and local residents to innovate using public education dollars.

Charter Schools

  • Public dollars fund independent schools.

  • First opened in 1992.

  • Now in 43 states + D.C.

  • Reference: https://www.vox.com/2014/4/30/18076968/charter-schools

Voucher Programs

  • Public dollars parents can use to send their kids to private or religious schools.

  • In 27 states.

School Voucher Video

  • Link: https://www.youtube.com/watch?v=yvir2PqkXuQ

In Favor of Voucher Programs - Questions

  1. What problem --- especially with traditional public schools --- are voucher programs designed to solve?

  2. What are the advantages of voucher programs, especially in light of the logic of free markets and competition?

  3. What are some ways in which voucher programs are succeeding?

  4. How do voucher programs improve economic and racial inequalities in schooling?

Against Voucher Programs - Questions

  1. What are the downsides of voucher programs, especially in light of their effects on traditional public schools?

  2. How successful have voucher programs been in the United States?

  3. How do voucher programs exacerbate economic and racial inequalities in schooling?