Transcript Economics 3 Infrastructure

Economic Systems in the
United States
SOL GOVT.14 The student will demonstrate
knowledge of economic systems
SOL GOVT.15 The student will demonstrate
knowledge of the United States market
economy.
SOL GOVT. 16 The student will demonstrate
knowledge of the role of government in
Virginia and United States economies
Why Does the Government
Collect Taxes?
To pay for the production of
government provided goods and services
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Transportation systems
Water and electricity
National Security
Medical Services
Educational and research Institutes
Corporate and individual subsidies
Types of Government
Goods and Services
Infrastructure: the basic physical
and organizational structures
needed for the operation of a
society or enterprise, or the
services and facilities necessary for
an economy to function
Mass transit:
Bus & Subways
Canals, Dams
Airports
Roads, Highways, Bridges & Levees
Levees
I-35W Bridge
Collapse
Minneapolis, MN
August 1, 2007
13 killed, 145 injured
8 lane bridge over the Mississippi River
100 vehicles
and
occupants
fell 115 feet
I-95 Mianus
River Bridge
Greenwich, Conn
June 28, 1983
1:30am
2 cars and 2 trucks
fell 70 feet
3 were killed
State of America’s Bridges
*Over 200 hundred million bridge crossings taken
by drivers every day in America
*1 in 9 of the nation’s 607,380 bridges are rated
structurally deficient: that’s 67,500 bad bridges!
*Average age is 43 years old
*Federal Highway Administration (FHWA) estimates
it will cost $20.5 billion each year until 2028 to fix
them all (currently spending $12.8 billion)
*26.7% of Va's bridges are functionally obsolete or
structurally deficient -- ranking the state 31st worst
nationally. (N.Carolina 30.2%, Maryland 27.7%).
Utilities:
Electric, Natural
Gas, Nuclear
Broadband &
Telecommunications
Lynchburg’s
Treatment Plant
near Percival’s Island
Pedlar Reservoir
Water Supply
and
Wastewater
Treatment
Lighthouses,
Parks, Ports
State Schools & Hospitals
Hazardous Waste
and Stormwater
“Superfund” Toxic waste site
National Security
National
Security
• Intelligence Services
• Homeland Security
Public Health and Safety
• Environmental Protection Agency (EPA):
protects the environment as a public
service
• Food and Drug Administration (FDA):
ensures the safety of food, drugs, cosmetics
• Consumer Product Safety Commission:
ensures the safety of other products
• Occupational Safety and Health
Administration (OSHA) tests consumer
products like lawnmowers, coffee makers…
Why Government Provides
Public Goods and Services
• It is more efficient
• Government-provided goods and services
benefit all individuals in a society equally
• The value of the goods and services is more
than the individual consumer could afford
• The cost is prohibitive for private enterprise
• It promotes economic activity and equity
Bottom Line
Government-provided
public goods and
services (aka
“Collective goods &
services”) benefit many
but would not be
available to everyone if
individuals had to
provide them