What’s the Government up to?

Government Objectives

Overall – to maximise economic performance

1 High economic growth (Growth in UK is now predicted to be 2.4%

in 2014, after five years of stagnation and very low growth; text book talks about Government aim of 2.5% – 3%)

What do you think the impact is of low economic growth?

2. Low Unemployment

Not zero but low The UK unemployment rate is falling, having

reached a 15-year high in June 2011 The Office for National Statistics (ONS)

announced that in September 2013 the unemployment rate was 7.7% (almost 2.5 million)

What do you think the impact is of high unemployment?

3. Inflation

Should be low, ideally between 2% - 2.5% (so that there is some growth in the economy)

Currently 2.7 % in the UK (September 2013)

4. Balance of Payments

Over time, should be balanced Large sustained deficits aren’t healthy The UK has been in deficit for the past 21

years But ... If businesses and financiers believe

that the UK economy is fundamentally healthy, there may be less concern than there would have been in the past

Other economic issues

Income distribution (and taxation policies)

Environmental Issues (and their economic impact)

Rebuilding the country’s infrastructure

Activities

Read the section on ‘Objectives of government economic policy’ (p.106-108)

Make notes, including copies of all the given definitions

Read the three newspaper articles on the UK economy. Highlight or underline the three most important sentences in each article. Be prepared to defend your choice!

Debate

The UK’s economy remains very fragile. You will be divided into two groups; one group

will be arguing in support of the statement, and one against.

Remember to keep the government’s objectives firmly in mind when assembling evidence to support your arguments.

Homework

The UK’s economy remains very fragile. Based on the articles you’ve read, and your

own knowledge, do you agree with this statement? Write an essay, of up to 500 words, for next Wednesday. Make sure that you make good use of evidence in reaching your conclusion – and remember that the best essays will look at both sides of the argument.