1. The Economic Goals of
the US Government

2. Do Now:
 Because of scarcity, there will always be
winners and losers, even in a free-
enterprise system.
 What do you think this means? Do you
agree with this statement? Why or why
not? Give examples.
 ½ page minimum

3. Review from Tuesday
 5 Economic freedoms:
 1) private property and contracts
 2) individual choice
 3) competition
 4) self-interested decisions
 5) limited government involvement
 Role of government in a free-enterprise system?
 Regulator
 Protects the people, encourages economic
growth, provides public services

4. Should you have the right to
your own private property?
Should individuals/businesses
who violate contracts be
punished?

5. Why do you illegally download
films/movies?
 Because it is a self-interested decision.

6. Is illegal downloading a voluntary
exchange?
NO! Only you (the consumer) benefits…
By illegally downloading, you are stealing
private property and violating contracts!

7. Do BitTorrent sites have the
right to economic competition?
 Warner Brothers VS. your source of illegal downloads
(The Pirate Bay, Demonoid…)
 Fair economic competition?

8. Conflicting Priorities
 You want to watch movies / listen to music at a low cost
 Problem: Big time movie / music industries want to charge you and
make as much $$$ as they can
 Lucky for you, BitTorrent sites offers movies / music at little to no cost.
 Problem: BitTorrent sites do not own the copyrights to the material
being traded. The material being traded is someone else’s private
property.
 By uploading illegal content, BitTorrent is violating a contract.
 By downloading illegal content, you are also violating a contract.

9. Who should be punished? You
or the websites that allow you
to illegally download material?

10. Government’s Response:
YOU
A conflicting solution

12.  Government laws like the DMCA is designed to meet
the 6 economic goals of the US government:
 1. Economic freedom
 2. Economic efficiency
 3. Economic equity
 4. Economic security
 5. Economic stability
 6. Economic growth

13.  Economic Freedom
 Economic freedom of all individuals
(consumers and producers)
 Consumers and producers are free
to do what they want with their
resources ($$ and private property).
 Economic Efficiency
 Make the best use of scarce
resources.
 More production  more efficient
economy

14.  Economic Equity
 Individuals share the costs and
benefits of the free-enterprise
system as equally as possible.
 Economic Security
 The economic well-being of its
people and the nation.

15.  Economic Stability
 2 concerns:
 Full employment: lowest possible
level of unemployment in the
economy
 Price stability: constant price level
of goods and services available
 Economic Growth
 Maximum output of goods and services
by all individuals
 High standard of living
 Economic well-being of its people