Stabilization and growth

Branches of government, including Congress and such entities as the Federal Reserve System, attempt to control the extremes of boom and bust, and of inflation and depression, by adjusting tax rates, the money supply and the use of credit. They can also affect the econo­my by changing the amount of public spending by the govern­ment itself. Normally, the aim is a balanced federal budget.

Direct assistance

The government provides many kinds of help to businesses and individuals. For example, tariffs per­mit certain products to remain relatively free from foreign competition; imports are sometimes taxed or limited by vol­ume so that American products can better compete with foreign goods. Government also provides aid to farmers by subsidizing prices they receive for their crops.

In quite a different area, government supports individ­uals who cannot adequately care for themselves by making grants to low-income parents with dependent children, by providing medical care for the aged and indigent, and through social insurance programs that assist the unemployed and retirees. Government also supplies relief for the poor and help for the disabled.

Vocabulary

1. to have a powerful effect on – оказывать мощное влияние на что-либо

2. military establishment – военное ведомство

3. the construction and maintenance of highways – строительство и тех.обслуживание шоссе

4. fire protection – пожарная охрана

5. to serve the interests of the people as a whole – служить интересам нации в целом

6. to permit – разрешать

7. to raise prices – повышать цены

8. to depend on – зависеть от

9. to exercise a control over smth – осуществлять контроль за чем-либо

10. to ban harmful drugs – запрещать вредные вещества

11. to require – требовать

12. branches of government – ветви власти

13. to control the extremes of boom and bust – контролировать крайности экономического роста и спада

14. to adjust tax rates – устанавливать налоговые ставки

15. depression – экономический спад

16. money supply – денежная масса

17. public spending – государственные расходы

18. assistance – помощь

19. tariff – тариф

20. limited by volume – в ограниченном объеме

21. grants to low-income families – пособия малообеспеченным семьям

22. to provide medical care for the aged and indigent – предусматривать медицинскую помощь для престарелых и нуждающихся

23. social insurance program – программа социального страхования

24. the unemployed and retirees – безработные и пенсионеры

25. to supply relief for the poor and disabled – предоставлять пособия бедным и недееспособным

Exercises

Exercise 1. Form adjectives from these nouns:

money	addition	base
benefit	commerce	capital
responsibility	nature	locality
majority	minority	relation

Exercise 2. Note the difference between the words: vary, variable, varied, various, variety, variation and then use them to complete the sentences.

1. Conditions on that market are stable and do not _______ very much from year to year.

2. That businessman handles a very _______ selection of products, including bananas, toys and cars.

3. It is often difficult to classify the _______ types of economic system in the world, because they tend to possess elements of capitalism and communism in different degrees.

4. The managers of that company hope to increase the _______ of products, which they offer for sale to the public.

5. There has been little _______ in price levels over the last five years.

6. Because prices on the market fluctuate considerably from week to week, we say that they are _______.

Exercise 3. Many words are formed by adding –able. There is however an active use of – able and a passive use. Try these exercises.

1. The active use of – able.

EXAMPLE Fruit can perish  Fruit is perishable

NOTE that can is not always necessary in the first sentence.

1. The plan can work.

2. Market conditions can change

3. Economic conditions can vary.

4. These policies suit (us).

5. Those products have a value.

6. Some investments make a profit.