MGTA05 - Foundations

Tutorial 3

Wednesday, January 25

1
 Tutorials: Purpose
From the Course Outline:
 
“During the tutorials the Professor will have
additional time to provide examples, and will
discuss news and current events that relate
to the theoretical material covered in the
previous lecture.”

2
Review: Economic Systems
Every country wrestles with the same
basic questions:

How do we feed the people?

How do we clothe the people?
How do we house the peope?
How do keep the people healthy?
How do we give people meaningful work?
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 Economic Systems
Different countries answer these
questions differently:

government or individuals
in control in control
 Economic Systems

Planned Market

All or mostly All or mostly

government individuals
in control in control
 Nationalisation
Government assumes control of
resources, business and industries

Runs them intending to benefit the

entire nation
 Privatisation
Move ownership out of
government hands

Turn ownership and control to private

owners
 Canada: Mixed Market System

Businesses and government co-exist

Businesses provide
most goods and services
Government provides some others
 Ontario Runs Liquor Stores

.xx

9
Private Businesses Sell Electricity

.xx

10
Shouldn’t it be the other
way around?

11
 Why are the Liberals Privatizing
Hydro One?
Premier Wynne wants to build $29-billion worth
of new transit, roads and bridges over the next
10 years, and needs a way to pay for it.
She has already raised income taxes on people
making more than $150,000 per year and re-
directed part of the gas tax to transit construction.
In order to find more money, she has decided
to sell off government assets.
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Are there some jobs that the
government ought to do?

What are they?

13
 The Mayor Doesn’t Want
to Pick up Garbage
.xx

14
Does the government have a responsibilty
to provide the population with:

Primary school education?

Secondary education?
University education?
Health care?
15
cc

16
Does the government have a
responsibility to provide
people with jobs?

17
 The Miners Strike - 1984
In 1984, UK Prime Minister Margaret
Thatcher closed down dozens of
unprofitable government-owned coal mines.
The workers she made unemployed lived in
small towns, had few other skills, and had
been mining for 3 or 4 generations.

https://www.youtube.com/watch?v=qzwATFfA1Lo

18
 The Death of Margaret Thatcher

Caution: Vulgar language in these videos

https://www.youtube.com/watch?v=Pjx-pOsZYk0

https://www.youtube.com/watch?v=wrxy93fY3vI

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