The Economic Goals of the US Government

Do Now:Because of scarcity, there will always

be winners and losers, even in a free-enterprise system.

What do you think this means? Do you agree with this statement? Why or why not? Give examples.

½ page minimum

Review from Tuesday5 Economic freedoms:

1) private property and contracts 2) individual choice 3) competition4) self-interested decisions5) limited government involvement

Role of government in a free-enterprise system?RegulatorProtects the people, encourages economic

growth, provides public services

Should you have the right to your own private property?

Should individuals/businesses who violate contracts be punished?

Why do you illegally download films/movies?

Because it is a self-interested decision.

Is illegal downloading a voluntary exchange?

NO! Only you (the consumer) benefits…

By illegally downloading, you are stealing private property and violating contracts!

Do BitTorrent sites have the right to economic competition?

Warner Brothers VS. your source of illegal downloads (The Pirate Bay, Demonoid…)Fair economic competition?

Conflicting Priorities You want to watch movies / listen to music at a low cost

Problem: Big time movie / music industries want to charge you and make as much $$$ as they can

Lucky for you, BitTorrent sites offers movies / music at little to no cost.

Problem: BitTorrent sites do not own the copyrights to the material being traded. The material being traded is someone else’s private property.

By uploading illegal content, BitTorrent is violating a contract.

By downloading illegal content, you are also violating a contract.

Who should be punished? You or the websites that allow you to illegally download material?

Government’s Response:

A conflicting solution

YOU

Government laws like the DMCA is designed to meet the 6 economic goals of the US government: 1. Economic freedom

2. Economic efficiency

3. Economic equity

4. Economic security

5. Economic stability

6. Economic growth

Economic Freedom Economic freedom of all

individuals (consumers and producers)

Consumers and producers are free to do what they want with their resources ($$ and private property).

Economic Efficiency Make the best use of scarce

resources. More production more

efficient economy

Economic Equity Individuals share the costs

and benefits of the free-enterprise system as equally as possible.

Economic Security The economic well-being of

its people and the nation.

Economic Stability 2 concerns:

Full employment: lowest possible level of unemployment in the economy

Price stability: constant price level of goods and services available

Economic Growth Maximum output of goods and

services by all individuals High standard of living

Economic well-being of its people