FMST 303 Lecture Notes - Lecture 5: Invisible Hand, Sales Tax, Temporary Assistance For Needy Families

• School: Towson University
• Department: Family and Human Services
• Course: FMST 303
• Professor: Jones- Eversley

Document Summary

In 2013, the federal debt was . 3 trillion; this morning the federal debt was. Socially constructed ways of developing & distributing resources and implementing societal values. Varieties of economic systems: communist, socialist, mercantilism, market economy (capitalism) Ra(cid:449)ls" idea of a so(cid:272)ial (cid:272)o(cid:374)t(cid:396)a(cid:272)t: justi(cid:272)e as fai(cid:396)(cid:374)ess. Contrast ra(cid:449)ls (cid:449)ith utilita(cid:396)ia(cid:374) p(cid:396)i(cid:374)(cid:272)iple: (cid:862)g(cid:396)eatest good fo(cid:396) the g(cid:396)eatest (cid:374)u(cid:373)(cid:271)e(cid:396)(cid:863)- policy. Assumes humans are naturally competitive and self-interested, rather than cooperative and altruistic. (cid:373)ith"s idea of (cid:862)i(cid:374)(cid:448)isi(cid:271)le ha(cid:374)d(cid:863) (cid:396)atio(cid:374)alizes (cid:373)a(cid:396)ket e(cid:272)o(cid:374)o(cid:373)(cid:455) & assu(cid:373)es (cid:272)o(cid:373)(cid:373)o(cid:374) good achieved through pursuit of individual self-interest: unproven. Laissez-fai(cid:396)e e(cid:272)o(cid:374)o(cid:373)i(cid:272)s: i(cid:373)pli(cid:272)atio(cid:374)s fo(cid:396) go(cid:448)e(cid:396)(cid:374)(cid:373)e(cid:374)t"s (cid:396)ole laws regulating private property rights and enforcing contracts involving the right to property. Impact of market economy on society & social policies: Market economy ideal: belief that it is most efficient way to produce and allocate goods and services. Supply and demand and profit motive determine what is produced, how much, and at what price.