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11.1Theeconomy
VocabularyEconomicissues
1Whatdoesthisquotationmean?Doyouagree?
‘Thegapinoureconomyisbetweenwhatwehaveandwhatwethinkweoughttohaveandthatisamoralproblem,notaneconomyone.’
PaulHeyne,Economicslecture
2Choosetherightwordtocompletethesesentencesabouttheeconomy
1Thecostoflife/livinginLondonissohighnowthatmanypeopleonlowincomes/revenuesfinditdifficulttolivethere.
2Insecurityinthejob/workmarkethasaffectedconsumerconfidence/trust.
3Thegovernmenthascutalotofpublicsegment/sectorjobsandcontractedtheworkouttoprivate/self-employedcompanies.
4Foreigninvesting/investmentinourmanufacturingindustryhashelpedeconomicgrowth/growingup.
5Theunemploymentratio/rateinsomepartsofthecountryisover20%andthebenefits/subsidythatthegovernmentpaystothejoblessisveryhigh.
6Abroad/Foreignimportsareincreasingandthecountrynowhasabigtradedeficit/shortage.
7Competitionandafree/openmarkethasbroughtpricesdownandhasincreasedpeople’sbuyingpower/ability.
8Thetaxburden/pressureoncompaniesissoheavynowthatmanyofthemaredelocating/relocatingtocountrieswheretaxesarelighter.
3Putthesewordsthatdescribetheeconomyinorderfromthemostpositive(++)tothemostnegative(--).
Stableboomingbuoyantdepressedhealthystagnant
++
-
1
2
3
4
5
6
4Whichbestdescribesyourcountry’seconomyatthemoment?Whatarethereasonsforitscondition?
5Howdoesthewelfarestateworkinyourcountry?
1Arethebenefitspaidbythestatetotheunemployed,thedisable,pregnantwomenandretiredpeoplegenerousornot?
2Doyouthinkthesebenefitsshouldbepaidbythestateorbyprivateinsurance?
READING6Readthearticleabouttherelationshipbetweengovernmentsandbigbusiness.Isitoptimisticaboutthisrelationship?Why?/Whynot?
FinanceWeekly,10September
Thenewphilanthropists
The19thcenturywastheageofcapitalism,the20thcenturysocialism.The21stcentury,itseems,willbetheageofcharity.But,asMrsThatchersaid,‘TheGoodSamaritanhadtoearnhismoneyfirst.’
WarrenBuffet,whenhemadeagiftof$31bntotheGatesFoundation,alreadyworth$29bn,jokedthathischildrenwouldhavetoworkfortheirliving–apartfromabilliondollarhandouttoeach.
Later,whenBuffettandGatesheldapressconferencetoannouncewhattheyintendedtodowiththeirfortune,itwasclearthatchannelingitthroughgovernmentwasnotanoption.‘BillandMelindawilldoabetterjobthan…theFederalTreasury,’saidBuffet. Insteadtheywould‘seekouttalenttodistributetheirmoneyjustastheysoughtouttalenttoacquireit’.
Forthesetycoons,whohaveprosperedinthefreemarketglobaleconomy,governmentandthepublicsectoraremonopolisticandinefficient.Governmentsmayhavebuiltthewelfarestateinthe20thcentury,buttoprovidethemwithfreecashtosupportthesestructures(schools,hospital,etc)wasnotontheiragenda.Insteadtheireffortswillbefocusedonalleviatingworldpovertyanddisease,andimprovingaccesstotechnology.
AdamSmith’s‘invisiblehand’,theeconomictheorythatthemarketwillrunsmoothlyifitislefttodecidewhatproductsaresoldandatwhatprice,hasbeentheguidingprinciplebehindglobalization.InAmericaithasproducedlargefortunesforahandfulofsuccessfulindustrialists:menwhonow,itseems,areturningtophilanthropy.
Opponentssaythatthefreemarketshowsnoregardforsocialconcernsandencouragespooremploymentandenvironmentalstanders.Wealth,theyargue,isnowconcentratedamongahandfulofglobalcorporationswhoseonlyaccountabletotheirshareholders.Theywouldliketoseegovernmentsputabrakeontheactivitiesofbigbusiness.
Butthepowerofgovernments,nationalandinternational,isdwindling.Thewelfarestatesofthe20thcentury,andthepublicsectorworkerswhostaffthem,areslowlybeingreplaced–ifnotbyprivatesectorprinciplesynonymouswithinefficiencyandwaste.
Atthesanetime,theagentsofinternationalgovernment-theUN,theIME,theWorldBankandtheEU-havesubsidizedtoomanyeconomies.Astheirreputationdeclines,theywillbereplacedbythecharityoftheprivatessector.
Childrenofthe60s,likeBillGates,haveexploitedthefreemarketruthlessly,butnowtheyarepreachingfreedomandlovearechoosingtogivebacktosociety.Theirheartsareintherightplace.Buttheyshareoneenemy-moderngovernmentinallitsforms.AsBuffettsaid,onlyafoolgiveshismoneytothetreasury.
Willsuchpeoplemakebetterworld?Whoknows?Buttheymeantotry.
READING1Readingthearticleonpage107againandchoosethebestanswer(A,B,CorD)toeachquestion.
1WareenBuffett’schildrenwill
A.notgetapennyfromtheirfather.
B.getajobwiththeirfather.
C.getabilliondollarseach.
D.havetoearntheirmoneyashedid.
2WhowillorganisethehandingoutofBuffett’sfortune?
BillandMelindaGates.
BillGatesandWarrenBuffett.
TheFederalTreasury.
PeoplespeciallyemployedbytheGatesandBuffett.
3Whatwillthemoneynotbespenton?
SchoolsandhospitalintheUS.
Helpingtheword’spoorpeople.
Helpingtheworld’ssick.
ProvidingInternetandcommunicationstechnologytomorepeople.
4Opponentsinthesixthparagraphreferstoopponentsof
Multinationalcompaniesandtheirshareholders.
Theeconomicsystemthathasproducedglobalization.
PhilanthropistslikeBuffett.
Thesmoothrunningofthemarket.
5Whatishappeningtogovernment,nationalandinternational,accordingtotheauthor?
Ithasbecometoopowerful.
Ithastoomanyagents.
Ithasbecomingcorrupt.
Itislosinginfluence.
6WhatdoesthephrasetheirheartsareintherightplacesayaboutpeoplelikeGatesandBuffett?
Moneyisnotsoimportanttothem.
Theyhavegoodintentions.
Theiractionsaredamaging.
Theyareledbytheiremotions.
2Findawordorphraseinthetextwhichistheoppositeofthefollowing.
1liveoffyourinheritance
2struggled
3supporters
4poverty
5becominggreater
6strengthened
3Doyourthinkthatrichphilanthropistscandoabetterjobthangovernmentsinhelpingtheneedyinsociety?
4Whichoftheseeconomicpointsofviewdoyouragreewith?
1‘Nosocietyeverprosperedbypunishingtherich.Theyaretheoneswhocreatewealthinourcommunitiesandraiseeveryone’sstanderofliving.
2‘Governmentsshouldnotworryaboutrich.Therichwillalwaysfindawaytolookafterthemselves.Itisthejobofgovernmenttolookafterthepoorinsociety.’
GRAMMARConditionals(Types1and2)
5Whatisthedifferenceinmeaningbetweenthesesentences?
1aIftheyraisetherateofincometaxfortopearners,thesepeoplewillprobablyleavethecountry.
2bIfraisedtherateofincometaxfortopearners,thesepeoplewouldprobablyleavethecountry.
2aIfearnalotofmoneyinmycareer,Iwillprobablyalsogivealottocharity.
2bIfIhadasmuchmoneyasWarrenBuffett,Iwouldprobablyalsogivealottocharity.
Conditionals(Types1and2)
Notetheformsofbothtypesofsentence.
If+present,…will+infinitive(withoutto)
If+past,…would+infinitive(withoutto)
.Weusethefirsttypeofifsentenceforsituationswhicharerealandpossible.
.Weusethesecondforsituationswhichareeitherunrealorimprobable.
6Decideiftheformsusedinthesesentencesarecorrectornot.Ifnot,correctthem.
IfIamtenyearsyounger,Iwillaskhertomarryme.Incorrect(×)
IfIamweretenyearsyounger,Iwillwouldaskhertomarryme
IfIseehim,Iwillcertainlygivehimyourmessage.
IfIknewtheanswertothat,I’dbearichman.
Ifyouweregoingtobelate,pleasewouldyoucallmeandletmeknow.
Ifyouareinmyposition,whatwillyoudo?
Wewillhavetolookforanothersupplieriftheycontinuetoraisetheirpriceseverythreemonths.
Iwouldn’tdoyourjobunlessIwaspaidafortune!
IfIhaveabetterknowledgeoffinance,Iwillcomewithyouifyoupromisetodothenegotiatingyourself.
SPEAKING
Socio-economicproblems
7Whichofthefollowingareproblemsinyourcountry?Decideiftheyareaseriousproblem,aslightproblemornotaproblem.
Problem
Serious
Problem
Slightproblem
Notaproblem
1Incomegapbetweenrichandpoor
2Anageingpopulationand/orpensionscrisis
3Over-dependenceonthewelfarestate
4Unemployment
5Shortageofkeyskillsorinadequateeducationsystem
6Heavytaxburden(onindividualsand/orcompanies)
Homelessnessorashortageofaffordablehousing
Poorheathdietorafailingheathservice
9Personaldebt
10Lackofinvestmentintransport,publicservice,etc.
1Discussthelistonpage109withyourpartner.Whatarethemainproblems?Whatisthegovernmentdoingaboutthem?
2Whatmorecouldtheydo?Useifsentencestomakesuggestions.
Ifthegovernmentincreasedtherateoftaxfortopearnersandreducedtherateforthelowestearners,thegapbetweenrichandpoorwouldbecomesmaller.
3Youarethinkingofrelocatingtoanothercountrytosetupasmallmanufacturingcompany.
1Makealistofthemostimportantfactorstoconsiderindecidingwhere.
2Compareyourlistwithapartner.
4Readthetext.WhatreasonsforrelocatingtoNicaraguadoestheauthorhighlight?
Nicaragua?
Yes,please!
Nicaraguaoffersadvantagesfewotherplacescanmatch.Thecostofliving,forexample,isafractionofwhatyou’reaccustomedtobackhome.Youcanemployafull-timemaidhereforabout$100permonth.Youcanseeamoviefor$2andgetyourhaircutfor$1.25.Twopeoplecanhaveanexcellentmeal,includingagoodbottleofwine,forlessthan$20.
Plus,thetaxburdenisverylight.AndasaforeignerqualifyingforNicaragua’sPensionadoprogram,youmaybeexemptfromimportdutiesonyourpersonalandhouseholdgoods;andbeallowedtobringavehicleintothecountrytax-freeonceeveryfiveyears.
Andifyouarelookingtostartabusiness,fewplacesofferbetterincentivesthanNicaragua,whichrecentlypassedtourismLaw306.Thislawallowsyoutoopenatourism-relatedbusinessand(1)paynotaxesfortenyearsand(2)bringin(orbuylocally)allthesuppliesyouneed,fromfurnitureboatstolinensandcashregisters…alltax-free.Year-roundsunshine.
ThesearetheprimaryreasonswehaveinvestedinNicaragua.Thenumbersandthetrendsarejusttoogoodtopassup.Butthesefactsandnumbersdon’tbegintotellthestoryofthelaid-backatmosphereandnaturalbeautyofNicaragua,andofLakeApoyoinparticular.
Nicaraguaisanexoticland,wherethesunshinesalldaylong,onruggedmountainsandtropicalrivers,colonialcities,friendlyandlivelypeople,andthelargestbodyoffreshwatersouthoftheGreatLakes(withtheworld’sonlyfreshwatersharks).
Asthepublisherofanewsletterthatinvestigatestheworld’sbestplacestotravel,buyrealestate,invest,liveandretire,IknowthattheopportunitytogetinonthegroundfloorofaplacelikeNicaraguadoesnotcomealongveryoften.
5Whatismeantbythesephraseinthetext?
1Advantagesfewotherplacescanmatch
2Exemptfromimportduties
3Toogoodtopassup
4Thelaid-backatmosphere
5Getinonthegroundfloor
LISTENINGRelocationexperience
6.11.1Listentothesefivepeopletalkingabouttheirexperiencesofrelocatinghomeorbusiness.
.Thefirsttimeyoulisten,indicateth
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