Course Hero Logo

Lesson 2 Economy and Environmental Policy.html - Lesson 2:...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 4 pages.

Lesson 2: Economy and Environmental PolicyLesson NotesGovernment policy affects your life. Every day, what government does or doesn’t do could mean thedifference between you having a job, or not. Between you eating a healthy meal, or not and even whetheryou live or die.We will look at a number of general issues to help you understand what exactly each level of governmentdoes in these key areas.It’s the EconomyOne area where government has a key role to play is the economy. Jobs, and a robust rate of employment arekey to a sound economy. Without jobs, people don’t have money to spend in restaurants or on homeimprovements. They pay less in taxes. A healthy economy, at least in most western democracies, is seen to begrowing. That is, the amount of goods and services produced each year increases at a slow and steady rate.So how can governments impact the economy?An explanation from the Conference Board of Canada:The economy is a collection of millions of individual consumers and firms interacting on a daily basis todetermine which goods and services will be produced, which firms will supply various products, whichconsumers will take them home at the end of the day, and what prices will be paid for the many differentproducts.Even in predominantly market economies, such as Canada and the United States, governments at all levelsplay an important role—they raise revenue by taxing many economic activities, and they spend theseresources by providing such services as defence, health care, education, and public housing. Even whengovernments are not directly taxing or spending, their presence is often felt through the regulations theyimpose in such areas as product safety, foreign ownership, licences for television stations, quotas for milkproduction, and minimum wages, to name just a few.Fiscal policyis the set of decisions a government makes with respect to taxation, spending, and borrowing.Governments at all levels (federal, provincial, and municipal) have a fiscal policy, since they all have theability to raise revenues through some form of taxation and to spend these resources on goods and services.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 4 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Winter
Professor
N/A

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture