-
11.1
The economy
Vocabulary
Economic issues
1
What does this quotation
mean? Do you agree
？
‘The gap in our economy is between what
we have and what we think we ought to
have and that is a moral problem,
not an economy one.’
Paul Heyne, Economics lecture
2
Choose the
right word to complete these sentences about the
economy
1
The
cost
of
life/living
in
London
is
so
high
now
that
many
people
on
low
incomes/revenues
find it
difficult to live there.
2 Insecurity in
the
job
/
work
market
has affected consumer
confidence/trust.
3
The government has cut a lot of public
segment/sector
jobs and
contracted the
work out to
private /self-employed
companies.
4
Foreign
investing/investment
in
our
manufacturing
industry
has
helped
economic
growth/growing
up.
5
The unemployment
ratio/rate
in some parts of the country is over
20% and the
benefits/subsidy
that the government pays to the jobless is very
high.
6
Abroad/Foreign
imports
are
increasing
and
the
country
now
has
a
big
trade
deficit/shortage
.
7
Competition and a
free/open
market has brought prices down and has increased
people
’
s
buying
power/ability.
8 The tax
burden/pressure
on companies
is so heavy now that many of them are
delocating /relocating
to
countries where taxes are lighter.
3
Put these words that describe the
economy in order from the most positive(++) to
the most negative(--).
Stable
booming
buoyant
depressed
healthy
stagnant
+ +
1
2
3
4
5
6
-
-
4
Which
best
describes
your
country
’
s
economy
at
the
moment?
What
are
the
reasons for its
condition?
5
How does the
welfare state work in your country?
1 Are the benefits paid by
the state to the unemployed, the disable, pregnant
women
and retired people generous or
not?
2 Do you think these benefits
should be paid by the state or by private
insurance?
READING
6
Read
the
article
about
the
relationship
between
governments and big
business.
Is it optimistic about this
relationship? Why? / Why
not?
Finance Weekly, 10 September
The new philanthropists
T
he
19
th
century
was
the
age
of
capitalism,
the
20
th
century
socialism.
The
21
st
century, it seems, will be the
age of
charity.
But, as
Mrs Thatcher said,
‘
The Good
Samaritan had to earn his money
first.
’
Warren
Buffet,
when
he
made
a
gift
of
$$31bn
to
the
Gates
Foundation,
already
worth $$29bn, joked that his children
would have to work for their living
–
apart from a
billion dollar handout to each.
Later,
when
Buffett
and
Gates
held
a
press
conference
to
announce
what
they
intended to do with
their fortune, it was clear that channeling it
through government
was not an option.
‘
Bill and Melinda will do a
better job than
…
the Federal
Treasury,
’
said
Buffet.
Instead they would
‘
seek out talent to
distribute their money just as they
sought out talent to acquire
it
’
.
For
these
tycoons,
who
have
prospered
in
the
free
market
global
economy,
government and the public sector are
monopolistic and inefficient. Governments may
have built the welfare state in the
20
th
century, but to provide
them with free cash to
support these
structures (schools, hospital, etc) was not on
their agenda. Instead their
efforts
will be focused on alleviating world poverty and
disease, and improving access
to
technology.
Adam
Smith
’
s
‘
invisible
hand
’
,
the
economic
theory
that
the
market
will
run
smoothly if it is left to decide what
products are sold and at what price, has been the
guiding principle behind globalization.
In America it has produced large fortunes for a
handful
of
successful
industrialists:
men
who
now,
it
seems,
are
turning
to
philanthropy.
Opponents
say
that
the
free
market
shows
no
regard
for
social
concerns
and
encourages poor
employment and environmental standers. Wealth,
they argue, is now
concentrated among a
handful of global corporations whose only
accountable to their
shareholders. They
would like to see governments put a brake on the
activities of big
business.
But
the
power
of
governments,
national
and
international,
is
dwindling.
The
welfare states of the
20
th
century, and the public
sector workers who staff them, are
slowly
being
replaced
–
if
not
by
private
sector
principle
synonymous
with
inefficiency and waste.
At the sane time, the agents of
international government- the UN, the IME, the
World
Bank
and
the
EU-
have
subsidized
too
many
economies.
As
their
reputation
declines, they
will be replaced by the charity of the privates
sector.
Children of the 60s, like Bill
Gates, have exploited the free market ruthlessly,
but
now they are preaching freedom and
love are choosing to give back to society. Their
hearts are in the right place. But they
share one enemy- modern government in all its
forms. As Buffett said, only a fool
gives his money to the treasury.
Will
such people make better world? Who knows? But they
mean to try.
READING
1
Reading
the
article
on
page
107 again and choose the best answer
(A, B, C
or D) to each
question.
1Wareen
Buffett
’
s children will
A.
not get a penny from their father.
B. get a job
with their father.
C. get a billion dollars
each.
D. have to earn their money as he did.
2Who will organise the handing out of
Buffett
’
s fortune?
A.
Bill and
Melinda Gates.
B.
Bill Gates and Warren Buffett.
C.
The Federal
Treasury.
D.
People specially employed by the Gates
and Buffett.
3 What will the money not
be spent on?
A.
Schools and hospital in the US.
B.
Helping the
word
’
s poor people.
C.
Helping the
world
’
s sick.
D.
Providing
Internet and communications technology to more
people.
4 Opponents in the sixth
paragraph refers to opponents of
A.
Multinational
companies and their shareholders.
B.
The economic
system that has produced globalization.
C.
Philanthropists like Buffett.
D.
The smooth
running of the market.
5
What
is
happening
to
government,
national
and
international,
according
to
the
author?
A.
It
has become too powerful.
B.
It has too many agents.
C.
It has
becoming corrupt.
D.
It is losing influence.
6
What does the phrase their hearts are in the right
place say about people like Gates
and
Buffett?
A.
Money
is not so important to them.
B.
They have good
intentions.
C.
Their actions are damaging.
D.
They are led
by their emotions.
2
Find
a
word
or
phrase
in
the
text
which
is
the
opposite
of
the
following.
1
live off your inheritance
2
struggled
3 supporters
4
poverty
5 becoming greater
6
strengthened
3
Do your think that rich philanthropists
can do a better job than governments in
helping the needy in society?
4
Which of these economic
points of view do your agree with?
1
‘
No society ever
prospered by punishing the rich. They are the ones
who
create wealth in our communities
and raise everyone
’
s stander
of living.
2
‘
Governments should not
worry about rich. The rich will always find
a way to look after themselves. It is
the job of government to look after
the
poor in society.
’
GRAMMAR
Conditionals (Types 1 and 2)
5
What is the difference in
meaning between these sentences?
1a
If
they
raise
the
rate
of
income
tax
for
top
earners,
these
people
will
probably leave the country.
2b If raised the rate of income tax for
top earners, these people would probably
leave the country.
2a If
earn a lot of money in my career, I will probably
also give a lot to charity.
2b If I had
as much money as Warren Buffett, I would probably
also give a lot to
charity.