Ýêîíîìèêî-ïðàâîâàÿ áèáëèîòåêà

Ó÷åáíèêîâ â áèáëèîòåêå - 334                                                                Èùèòå æå ïðåæäå Öàðñòâà Áîæèÿ è ïðàâäû Åãî, è ýòî âñå ïðèëîæèòñÿ âàì. (Ìàòô.6:33)

1. Evolution of Economic Systems

The following stages in the development of economic systems merely suggest the changes, which occurred in a few countries. Some groups of people never developed all the stages set forth below, or they may have had some of the stages existing side by side at the same time.

1. Hunting-and-Fishing Stage

2. Pastoral Stage

3. Agricultural Stage

4. Handicraft Stage

5. Industrial or Manufacturing Stage.

In the hunting-and-fishing stage, primitive man satisfied his daily needs directly from nature. The hunting tribes moved from one location to another in search of food to sustain them. The fishing tribes were more likely settled in one place as a permanent home.

During the pastoral stage, a man began to domesticate animals and wild grain for his own use. The owner of the sheep, cattle, and goats spent their time in watching over their animals and looking for fresh grassing grounds or for more abundant water supply. During this stage, an individual’s wealth was measured by the size of his herd.

The English manor with a feudal basis predominant from the tenth to the fourteenth century affords a good example of the agricultural stage. The whole country outside of the larger towns was divided into these manors. There was the land outside the village. It was divided into three great fields. One of them was sown with wheat, one with oats or barley or beans, while one was left fallow. Each peasant was obliged to cultivate his land in accordance with the rotation of crops followed by his neighbours.

A peasant had to work two or three days a week - with additional days at planting and harvest time–- on the lord’s pert of the estate. There were small quarterly payments to be made in money, and miscellaneous dues (hens, eggs, oats). There were still other services, of which the most important was carting.

 

Vocabulary

evolution – åâîëþö³ÿ, ðîçâèòîê

to suggest – ïðîïîíóâàòè

to occur – òðàïëÿòèñÿ

set forth – ïîÿñíþâàòè, ðåêîìåíäóâàòè

side by side – ïîðó÷

to exist – ³ñíóâàòè

Pastoral Stage – ïàñòîðàëüíèé (ïàñòóøèé)

Handicraft Stage – ïåð³îä ðîçâèòêó ðåìåñåë

directly from – áåçïîñåðåäíüî ç (â³ä)

to sustain – ï³äòðèìóâàòè, ï³äêð³ïëÿòè ñèëè

a permanent home – ïîñò³éíà äîì³âêà

abundant – áàãàòèé íà ùîñü

herd – ñòàäî, òàáóí

manor [‘mæn r] – ôåîäàëüíèé ìàºòîê

predominant – òîé, ùî ïåðåâàæàº

affords a good example – äຠõîðîøèé ïðèêëàä

to sow – ñ³ÿòè, çàñ³âàòè

oats – îâåñ

barley – ÿ÷ì³íü

fallow – çåìëÿ ï³ä ïàðîì

to be obliged – áóòè çîáîâ’ÿçàíèì

to cultivate – îáðîáëÿòè

in accordance with – â³äïîâ³äíî äî

rotation – ïåð³îäè÷íå ïîâòîðåííÿ

lords pert of the estate – óïðàâëÿþ÷èé ìàºòêîì

miscellaneous dues – ð³çíîìàí³òí³ ïîäàòêè

carting – ïåðåâåçåííÿ íà â³çêó.

I. Complete the sentences using the text:

1.    In the hunting-and-fishing stage, primitive man satisfied his daily need ... .

2.    The fishing tribes were more likely settled in one place ... .

3.    During this stage an individual wealth was measured ... .

4.    The whole country outside of the larger towns, was divided … .

5.    Each peasant was obliged to cultivate his land ... .

6.    There were still other series ... .

II. Answer the questions, basing your answers on the text.

1.    What do the stages in the development of economic systems suggest?

2.    What stages in the development of economic systems can you point out?

3.    What way did a primitive man satisfy his daily needs in?

4.    At what stage did a man begin to domesticate animals and wild grain?

5.    What affords a good example of the agricultural stage?

6.    Who was a lord? What rights did he possess?

7.    How did each peasant cultivate his land?

8.    How many days a week did a peasant have to work on the lord?

III. Say whether these statements are true or false and if they are false, say why.

1.    All groups of people developed all the stages set forth below.

2.    In the hunting-and-fishing stage, primitive man satisfied his daily needs not only from nature.

3.    During the pastoral stage, a man began to domesticate animals and mild grain for his own use.

4.    The English manor with a feudal basis predominant from the tenth to the fourteenth century affords a good example of the agricultural stage.

5.    The land was divided into three great fields and all were sown with wheat, oats or barley.

6.    Each peasant cultivated his land, as he liked.

7.    A peasant had to work on the lord’s pert of the estate.

8.    There were quarterly payments to be made only in money.

2 Capitalism

The system of capitalism began with the industrial revolution. Certain features of capitalism are identified with the following:

1. Private property. This means the exclusive right of an individual to control wealth or income. Economic progress has sometimes been hampered by the fear that a man might not be allowed to read what he had sown.

2. Freedom of enterprise. Free enterprise is the right of a person to make what he likes and as he likes, or to enter any trade or profession.

3. Competition – The system of capitalism is based on competition. Our modern society permits and encourages it. Competition leads to improvements in methods of production and in the articles produced. It results in greater output and lower prices.

4. Profits. Profits are the reward that comes to the entrepreneur as a result of his efforts. If, after paying from the gross receipts of his business all the expenses for wages interest, and rent due to the others, there is something left over, then this belongs to him. Profits are the end result of a capitalist enterprise – a contingent reward, on the degree of success of the business. What leads the entrepreneur to perform his function is, not always profits, but the chance of profits.

5. Laissez-faire. Adam Smith, the father of Economics understood that the well-being of a community was best served by a policy of governmental non-interference in economic affairs. Smith believed that in looking after his own interests a business-man was “led by an invisible hand” to look after the interest of society as a whole. But popular opinion today insist that consumers must be protected from high monopolistic prices, from shabby goods, from dangerous drugs.

Many criticisms have been made of the capitalistic system in modern times. The individual should be prepared to weigh for himself the validity of these criticisms.

One criticism of capitalism is that it leads to an unfair distribution of wealth. Under this system the rich get richer and the poor get poorer. The toil and the want of the labouring classes are means of speeding and piling up the wealth of the capitalist classes.

A somewhat similar criticism of capitalism is that it thinks more of profits than of social welfare. The ability to possess great wealth and secure the income from it without active participation in the management of business is a modern condition. We know the following method of wealth getting in society: the rendering of service to others or to society for the sake of adequate reward in return, and the acquirement of gain for one-self at the expense of others with practically no service rendered to society. The latter method is now practised with success by the majority of capitalism.

But one might call attention to the case of Henry Ford. He undoubtedly accumulated millions. But at the same time he was a great philanthropist. He satisfied the wants of millions for some form of cheap transportation.

Another inducement of capitalism is that it works without plan. Production and consumption are not co-ordinated. The labour of untold men and women and of their machines is lost. Under the rule of business - as usual, they shoot blindly without aim and without goal. They have knowledge of the consumptive capacity of the country. Each plant is trying to sell all it can.  

Capitalism has sometimes been blamed for the frequency of depressions. Over-production results from the lack of a planned economy. Over-production leads to the closing of factories, which, of course, means mess unemployment and all the evils associated with it. The business cycle of booms and panics began with the factory system.

Another change against capitalism is that it has been responsible for the waste of our natural resources. Big business “skims the skims” from the oil gushers, from the wide-veined coal-bearing Rock, and from virgin forests.

Vocabulary

identify – îòîòîæíþâàòè

private property ïðèâàòíà âëàñí³ñòü

exclusive âèíÿòêîâèé

wealth áàãàòñòâî, äîñòàòîê

income – äîõîä

to hamper – ïåðåøêîäæàòè, çàâàæàòè

freedom of enterprise ñâîáîäà ï³äïðèºìñòâà

competition êîíêóðåíö³ÿ

to permit äîçâîëÿòè

to encourage íàäèõàòè, ñïðèÿòè

reward – íàãîðîäà

entrepreneur – ï³äïðèºìåöü

gross receipts âàëîâ³ îäåðæàííÿ

expenses âèòðàòè

a contingent reward âèïàäêîâèé, ìîæëèâèé

laissez - faire [‘leisei’f ] – ïîë³òèêà íåâòðó÷àííÿ

well-being äîáðîáóò

non-interference íåâòðó÷àííÿ

dangerous drugs íåáåçïå÷í³ ë³êè

validity – îáãðóíòîâàí³ñòü

toil – âàæêà ïðàöÿ

to pile up íàãðîìàäæóâàòè

welfare – äîáðîáóò, äîñòàòîê

to possess – âîëîä³òè

to secure – ãàðàíòóâàòè, çàáåçïå÷óâàòè

for the sake of çàðàäè ÷îãîñü

acquirement íàáóòòÿ, îâîëîä³ííÿ

at the expense çà ðàõóíîê

to call attention ïðèâåðíóòè óâàãó

undoubtedly – áåç ñóìí³âó

inducement – ñòèìóë, ïðèìàíêà

consumptive capacity ñïîæèâàöüêà ñïðîìîæí³ñòü

to blame – çâèíóâà÷óâàòè

oil gushers – ðîçëèâè íàôòè

to skim çáèðàòè âåðøêè, íàõàïàòèñÿ.

I. Complete the sentences using the text:

1.    The system of capitalism began ... .

2.    Certain features of capitalism are private property, freedom of enterprise ... .

3.    Profits are the end result ... .

4.    But popular opinion today insists that consumers ... .

5.    A somewhat similar criticism of capitalism is that ... .

6.    Another inducement of capitalism is that ... .

7.    Each plant is trying ... .

8.    Capitalism has sometimes been blamed for ... .

9.    Over-production leads ... .

10.   Another change against capitalism is that ... .

II. Answer the questions, basing your answers on the text.

1. What did the system of capitalism begin with?

2. What does private property mean?

3. What is freedom of enterprise?

4. What is the system of capitalism based on?

5. What does competition lead to?

6 . What are profits?

7. What do profits depend on?

8. How did Adam Smith understand the well-being of a community?

9. What does today’s popular opinion say about consumers’ protection?

10. Which are the characteristic features of capitalism?

III. Say whether these statements are true or false and if they are false, say why.

1.    The main features of capitalism are competition and profits.

2.    Our modern society permits and encourages competition.

3.    Profits are the end result of a capitalist enterprise.

4.    Smith believed that in looking after his own interests a businessman was «led by an invisible» hand to look after the interest of society as a whole.

5.    One criticism of capitalism is that it leads to an unfair distribution of wealth.

6.    Capitalism thinks both of profits and of social welfare.

7.    Both capitalism and socialism work without plan.

8.    Under capitalism each plant is trying to sell all it can.

9.    Over-production leads to the closing of factories and mass unemployment.

3 Economic factors in national development

The activities of a man are engaged largely in obtaining six major classes of goods-food, clothing, shelter and furniture, fuel, tools and materials of industry, and luxuries. In making provision for these things, we depend largely on physical factors. Man, for example, seeks shallow water near continents for abundant fish; they obtain coal oil and natural gas from beds and pools in the depths of earth; they obtain wood pulp for paper from our temperate forests; they get the wheat that provides the flour that gives us our daily bread from the level, fertile plains.

But there are other factors that help to account for the speed or tardiness of a nation’s development. There are the racial traits or customs of the people the artistic ability of the French, for example, or the leisurely habits of the Latin Americans. In the production and distribution of goods, there is the advantage of an early start; there is the matter of availability of labour and capital, as well as the degree of skill of workers and technicians; and there is the attitude of the government – through its control of tariffs and subsidies towards economic development.

Until very years, industrial power has been concentrated largely in Anglo-America, Western Europe, and the former USSR. Here were located the so-called “rich” nations, whereas the “poor” or “developing” nations stretched across a great part of the face of the earth. The West has been well aware that the centre of gravity of world problems today is in Asia and Africa. It is in these continents that are required agricultural and industrial development, better education, better housing, and improved health services.

The requirements of the new nations are great. But the resources remain largely undeveloped. The people are still often illiterate but they seek enlightenment and guidance. The responsibility of “rich” nations is still tremendous in spite of what has already been accomplished. The old traditional world is dying; a radical new world is being born.

Vocabulary

to be engaged áóòè çàéíÿòèì

to obtain çäîáóâàòè, ïðèäáàòè

fuel ïàëèâî, ïàëüíå

luxury ðîçê³ø, ïðåäìåòè ðîçêîø³

shallow ì³ëêîâîäíèé, íåãëèáîêèé

depth ãëèáèíà

pulp ïàïåðîâà ìàñà

flour áîðîøíî, ìóêà

fertile ðîäþ÷èé

tardiness óïîâ³ëüíåííÿ

trait – øòðèõ, ðèñà

advantage – ïåðåâàãà

availability – ïðèäàòí³ñòü, äîñòóïí³ñòü

subsidy ñóáñèä³ÿ, ï³ëüãà

to locate ì³ñòèòèñÿ

to be aware çíàòè, áóòè îá³çíàíèì, óñâ³äîìëþâàòè

gravity – âàæëèâ³ñòü, ñåðéîçí³ñòü

to require – âèìàãàòè, ïðîïîíóâàòè

to improve ïîë³ïøóâàòè, óäîñêîíàëþâàòè

to remain çàëèøàòèñü

illiterate íåïèñüìåííèé

enlightenment ïðîñâ³òà

tremendous âåëè÷åçíèé

in spite of íå çâàæàòè íà, âñóïåðå÷

to accomplish çàâåðøóâàòè.

I. Complete the sentences using the text:

1.    The activities of a man are engaged largely in obtaining ... .

2.    But there are other factors that ... .

3.    In the production and distribution of goods, there is ... .

4.    Until very years, industrial power has been concentrated ... .

5.    The West has been well aware that ... .

6.    The people are still often illiterate but ... .

7.    The old traditional world ... .

II. Say whether these statements are true or false and if they are false, say why.

1.    The activities of a man are engaged largely in obtaining two major classes of goods - clothing, shelter.

2.    In making provision for six major classes of goods, we depend largely on physical factors.

3.    There are only racial traditions or customs of people that help to account for the speed or tardiness of a nation’s development.

4.    So-called «rich» nations were located in Anglo-America, Western Europe.

5.    The west has been well aware that agricultural and industrial development, better education, better housing and improved health services are required in Asia and Africa.

6.    The requirements of the new nations are not great.

7.    The responsibility of «Rich» nations for the new nations is still tremendous.

8.    The old traditional world is dying: a radical New World is being born.

III. Answer the questions basing your answers on the text:

1.    What are the activities of a man engaged in?

2.    Why do we depend on physical factors in making provision?

3.    What helps us to account for the speed on tardiness of the nations development?

4.    What is very important for production and distribution of goods?

5.    Where are developing nations located?

6.    What are the major problems of developing countries?

7.    Why is the responsibility of «rich» nations still tremendous?

4 Independence of national economics

Since the World War II particularly, many nations have come to realise that it was not a good thing for its people or its economy to be alone. Regional groups of many countries have therefore been established to bring about improvement to provide some measures of economic integration. Among these groups have been the followings:

1/ Nations associated in G.A.T.T. (General Agreement on Trade and Tariffs). Many countries entered this Agreement and made tariff concessions to one another. The first Agreement was in 1947.

2/ E.F.T.A. (European Free Trade Association). Members of this Association reduced duties on most industrial goods produced and sold among themselves.

3/ L.A.F.T.A. (Latin American Free Trade Association). Its members agreed to remove customs duties and other trade barriers at a minimum reduction rate of eight per cent annually.

4/ A.P.L.A. (Alliance for Progress with Latin American). This alliance was sponsored by President Kennedy in 1961. Its aims were partly humanitarian and partly to offset the influence of Cuba.

So long as Latin American partners did not expropriate American owned properties, they could receive large United States foreign appropriation for their economic development.

5/ E. E. C. (European Economic Community) or the common Market. This group came into existence on January 1, 1958.

Western Europe has rolled up its sleeves and gone to work. The results has been an economic miracle. Shattered by war, countries that once were enemies have banded together and the economic community is growing as strong as steel that rolls from its factories. At the outset there were six members - the Netherlands, Belgium, Luxembourg, France, West Germany and Italy. The aim of the E.E.C. was to abolish all obstacles to economic growth to secure a completely tariff-free internal Community. Tariffs were not all to be abolished at one time, but on a gradual basis. But common tariffs were to be placed on goods coming into the Community from other countries.

In the first three years of its existence industrial production rose by 25 per cent compared with 13 per cent in Great Britain and 8 per cent in the United States. Foreign capital flowed into the Community in increasing quantities. Some 500 American firms - big stores, automobile plants, oil companies, etc. moved in and established themselves in the Common Market. Most jobs became available almost immediately, wages improved. Other countries watched this transformation worth more than passing interest; several supplications for membership in the Community were made.

Vocabulary

to be alone – áóòè îäèíîêèì, ñàìîòí³ì

to establish – âñòàíîâëþâàòè, çàñíîâóâàòè

to bring about – çä³éñíþâàòè, âèêëèêàòè

concession – ïîñòóïêà, êîíöåïö³ÿ

to reduce – çìåíøóâàòè, çíèæóâàòè

a minimum reduction rate – ì³í³ìàëüíèé òàðèô çíèæåííÿ

annually – ùîð³÷íî

alliance – ñîþç

partly to offset – ÷àñòêîâî êîìïåíñóâàòè

foreign appropriation – ³íîçåìíå àñèãíóâàííÿ

to come into existence – ïî÷àòè ³ñíóâàòè

to roll up sleeves – çàêà÷óâàòè ðóêàâà

an economic miracle – åêîíîì³÷íå äèâî

shattered by war – ðîçáèò³ âùåíò â³éíîþ

at the outset – ñïî÷àòêó

to abolish all obstacles – çíèùèòè âñ³ ïåðåøêîäè

to become available – ñòàòè äîñòóïíèì

several supplications – äåê³ëüêà ïðîõàíü.

I. Fill in the missing words or phrases.

1.    Regional groups of many countries have therefore been established ... ... of economic integration.

2.    Members of E.F.T.A ... on most industrial goods produced and sold among themselves.

3.    Members of L.A.F.T.A agreed ... and other trade barriers.

4.    The aims of A.P.L.A were partly ... and partly ... the influence of Cuba.

5.    At the outset there were ... the Netherlands, Belgium, Luxembourg, France, West Germany and Italy.

6.    The aim of the E.E.C. was ... to economic growth ... internal Community.

7.    Foreign capital ... in increasing quantities.

8.    Most jobs became ... most immediately, wages... .

II. Say whether these statements are true or false and if they are false, say why.

1.    After World War II many nations realised to integrate but not to be alone.

2.    Five regional groups have been established to provide some measures of economic integration.

3.    Latin American partners could receive large foreign appropriation for their economic development.

4.    Western Europe has rolled up its sleeves and gone to work but there was no success.

5.    At the outset there were six members in the economic community.

6.    The aim of the E.E.C. was to abolish all obstacles to economic growth.

7.    Common tariffs were abolished on goods coming into the Community from other countries.

8.    In the first three years of its existence the community achieved a great progress.

9.    American capital flowed into the Community, there appeared new jobs.

III. Answer the questions basing your answers on the text:

1.    What have many nations come to realise since the World War II?

2.    How many regional groups have been established?

3.    What was the aim of establishing regional groups?

4.    Why could Latin American partners receive large foreign appropriation for their economic development?

5.          What countries were the first members in the economic community?

6.    What was the aim of the E.E.C.?

7.    Were all tariffs abolished at one time?

8.    Prove that the economic community has been a great success since the first years of its existence?

 

5 Social control of modern industry

Adam Smith was a believer in the doctrine known as laissez-faire. It was Smith’s opinion that wealth could be most rapidly increased and most fairly distributed by the simple process of leaving people to follow the prompting of self-interest unrestrained either by the state or public opinion.

The story of conditions in the early English factories has been told many times. But it may be prudent to recall the facts once again. There are still some people opposed to social control of industry. The use of men, women, and children by factory owners at the beginning of the 19-th century had all the earmarks of slave ownership starvation brought the wives and daughters of the workmen to the factories and there was no worry about wearing them out. Half-naked women were harnessed to draw carts in the mines through passages two feet seven inches high. Children of eleven worked twelve to fourteen hours a day in factories.

There was often the same food for the children that the master gave his pigs. Irons were fastened to the ankles of women and girls to keep them from running away. There were adults broken down from toil at thirty years of age and the suicide rate was high. Probably no form of human slavery was ever worse than this.

In the face of such evils changes have been making for human betterment. There has been an improving trend in public morality. Modern democratic governments make their economic systems serve the best interests of their citizens. All people should have equality of opportunity. The state should safeguard the health and well being of its men, women, and children. The individual should be free to choose his own work without interference, have the right to own property, and receive the just reward of his labour.

Vocabulary

to follow the prompting of self-interest – íàñë³äóâàòè ï³äêàçêàì ñâîºêîðèñëèâîñò³

unrestrained – íåñòðèìàíèé, íåâãàìîâíèé

prudent – ðîçñóäëèâèé

to recall – çãàäóâàòè, íàãàäóâàòè

opposed – íàñòðîºíèé ïðîòè ÷îãîñü

earmark – òàâðî, êëåéìî

starvation – ãîëîä

to harness – çàïðÿãàòè

to draw carts – òÿãíóòè â³çêè

passage – ïðîõ³ä, ïðî¿çä

ankle – ê³ñòî÷êà (íà íîç³)

the suicide – ñàìîâáèâñòâî

break down – ö³ëêîâèòå çíåñèëåííÿ

evil – ëèõî, çëî

equality of opportunity – ð³âí³ñòü ìîæëèâîñòåé

to safeguard – îõîðîíÿòè, ãàðàíòóâàòè

just reward – ñïðàâåäëèâà âèíàãîðîäà

I . Complete the sentences using the text:

1.    There are still some people opposed ... .

2.    Half-naked women were harnessed to draw ... .

3.    Irons were fastened to the ankles of ... .

4.    In the face of such evils ... .

5.    Modern democratic governments make ... .

6.    The state should safeguard ... .

II. Say whether these statements are true or false and if they are false, say why.

1.    Adam Smith didn’t believe that wealth could be most rapidly increased and most fairly distributed.

2.    There are a lot of people opposed to social control of industry.

3.    The use of men, women and children by factory owners at the beginning of the 19-th century had all the earmarks of slave ownership.

4.    Children had to work to fourteen hours a day in factories.

5.    There was often the same food for the children that the master gave his pigs.

6.    Probably no form of human slavery was ever worse that this.

7.    There has not been an improving trend in public morality.

8.    Modern democratic governments make their economic systems serve the best interests of their citizens.

9.    All people should not have equality of opportunity.

10.   The state should safeguard the health and well being of its men, women and children.

 

III. Answer the questions basing your answers of the text:

1. What was Smith’s opinion as a believer in the doctrine known as laissez-faire?

2. Why may it be prudent to recall the facts of conditions in the early English factories?

3. What can you say about the conditions in the early English factories?

4. What were the conditions of children’s labour?

5. What is the role of modern democratic governments on the control of modern industry?

 

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