Module 2 Weekly Writing Assignment 

Writing Assignment – respond to the following questions.

1. What are the three most important takeaways/lessons from the material provided in this module? (150 words or more)

2. Drawing on the material that was provided what else would like to know? What other related questions/ideas/topics would you like to explore in the future? (100 words or more)

3.  Which model of government-business relations do you believe is the most “realistic” and why (provide examples)?  (100 words or more)

（Video address link：https://csusb.blackboard.com/bbcswebdav/pid-2500000-dt-content-rid-14906890_1/xid-14906890_1

https://csusb.blackboard.com/bbcswebdav/pid-2500002-dt-content-rid-14906891_1/xid-14906891_1

http

：

//www.youtube.com/watch？v = y6tljCXVSdc

）
 

PA 315
GOVERNMENT BUSINESS RELATIONS
CHAPTER 2
California State University San Bernardino
College of Business & Public Administration
Professor Sharon Pierce

*

CHAPTER REVIEW 1
Which of the following are generally thought to put pressure on society for the growth of government?
Wars
Special interests seeking special assistance
The complexity of society
All of the above
None of the above

CHAPTER 1 REVIEW
The two oldest roles of government, according to the text, are transportation and education.
True
False

CHAPTER 1 REVIEW
When governments provide public education, the text calls that role:
Safeguard against risk
Purchaser
Social architect
Service provider

CHAPTER 1 REVIEW
One of the areas which is commonly thought of as a strength (dubbed ‘the good”) of government is:
Requiring taxes
Creating monopolies
Providing economic stability
Preventing the collusion of power (manipulation by powerful interests)

CHAPTER 1 REVIEW
Altogether, the U.S. has approximately how many governments?
51
435
37,000
89,000
.25 million

CHAPTER 1 REVIEW
Government-business relations are largely defined by the:
Complementary roles
Cooperative roles
Conflicting roles
All of the above
None of the above

BIG GOVERNMENT
VS.
SMALL GOVERNMENT –
WHICH IS IDEAL FOR THE UNITED STATES?

WHAT DO YOU BELIEVE IS THE IDEAL ROLE OF GOVERNMENT?

Chart1

Less Government

Moderate Government

More Government

Not sure

Class Poll
Class Poll Spring 2019
38
7
10
4

Sheet1

Class Poll

Less Government 38

Moderate Government 7

More Government 10

Not sure 4

WHAT DO YOU BELIEVE IS THE IDEAL ROLE OF GOVERNMENT?

Chart1

Less Government

Moderate Government

More Government

Not sure

Class Poll
Class Poll Winter 2019
61
21
10
8

Sheet1

Class Poll

Less Government 61

Moderate Government 21

More Government 10

Not sure 8

FALL 2018

*

Chart1

Less Government

Moderate Government

More Government

Not sure

Class Poll
Class Poll Fall 2018
52
28
16
4

Sheet1

Class Poll

Less Government 52

Moderate Government 28

More Government 16

Not sure 4

SPRING 2018

*

Chart1

Less Government

Moderate Government

More Government

No Idea…

Class Poll
Class Poll
40
41
14
5

Sheet1

Class Poll

Less Government 40

Moderate Government 41

More Government 14

No Idea… 5

WINTER 2018

*

Chart1

Less Government

Moderate Government

More Government

Class Poll
24
54
22

Sheet1

Class Poll

Less Government 24

Moderate Government 54

More Government 22

FALL 2017

*

Chart1

Less Government

Moderate Government

More Government

Class Poll
19
62
19

Sheet1

Class Poll

Less Government 19

Moderate Government 62

More Government 19

LESS GOVERNMENT
“I believe the government should have less power as it is getting to the point where you almost have to ask permission to leave your house.”
“People should have more power than they have now.”
“Small government means the system is more flexible.”
“Although big government has benefits, it can get annoying paying more and more taxes for programs you will most likely never use.”
“We can’t be a ‘free’ country if we are going to restrict our freedoms or taken them away.”
“People should have more control…government sometimes interferes too much in the public life domestically but also internationally.”
“I want the power to make decisions for my family.”

MODERATE GOVERNMENT
“Too little government would make society chaotic. The rules and regulations that the government implements helps stabilize society as a whole.”
“When it comes to a crisis, natural and unnatural, we need the government to help us out. But, in the case of owning a gun, weed, and things like that, I don’t think government should ever play that big of a role in it.”
“Things like natural disaster aftermath benefits from large government funding for example but things like checks and balances from small government could come together for form a successful moderate government.”
“Government should be neither big or small – small government is great because it is more efficient and flexible but big government is helpful after natural disasters.”
I think social programs are needed but there should be more controls in place so people don’t abuse the system. We should find another way to get social programs funded, everything should not be the government’s responsibility, however, that may mean that citizens should step up.”
“I believe the government is just right.”

*

MORE
GOVERNMENT
“Larger government could be more beneficial in the long run…an earthquake happening – the majority of people will then think or prefer the larger government is better.”
“Military expenses – I and most of society would want a bigger government for our safety.”
“I think a big government has more power and will be able to take action against big matters – some examples are a major disaster or war.”
“More social programs from this type of government are incredibly beneficial to the overall population…It also regulates people and businesses to act fairly in a socio-economic way; trying to benefit society/the planet/communities.”
“When we are in a crisis with our economy, the government is there to lift us back up…their role should be to use their power to help us in our time of need.”
“More government intervention in improving the quality of our lives.”
“A big government to serve & protect their citizens.”
“I believe we need more government because there are a lot of illegal business activity still happening,”

CHAPTER 2

*

THREE MODELS OF GOVERNMENT-BUSINESS RELATIONS
Business centered approach
Shareholder model
Strategic Business model
Stakeholder model

Not a comprehensive list

THE SHAREHOLDER MODEL
Considers only business interests
Emphasis on profit-making
Government and business should be separate – government as little as possible
Focuses on internal efficiency and competition (Adam Smith – free market)
Example: investment banks

*

WHAT IS A SHAREHOLDER
A shareholder is any person, company or other institution that owns at least one share of a company’s stock.
Because shareholders are a company’s owners, they reap the benefits of the company’s successes in the form of increased stock valuation.

If the company does poorly, however, shareholders can lose money if the price of its stock declines.

*

CRITIQUE OF THE SHAREHOLDER MODEL
Market failure demands government vigilance and intervention.
Business’ demands for government and advantageous position to benefit from government
Too much emphasis on monetary and material gains
Does not focus on external issues – environment, community, etc.

SAMS CLUB CLOSED 63 STORES
Shareholder model

*

WHAT DO YOU THINK ABOUT SAMS CLUB CLOSING 63 STORES?

Walmart is closed 63 Sam’s Club stores.
The closures span 24 states and Puerto Rico.
Illinois lost seven stores, the highest number of any state.
The Memphis, Tennessee Sam’s Club and nine additional stores were turned into e-commerce distribution centers.

*

THE STRATEGIC BUSINESS MODEL
The model emphasizes competition
Most efficient and effective use of resources; playing the game well
Government with low taxes and few regulations, stable policies and strong performance, and protections in global competition
The model also emphasizes collaboration
Good strategies for a winning team – win win situations
Practical use of governmental resources – Boeing Corporation
Example of Strategic Business Model – Community banks/credit unions
Community focused – local needs and conditions
Strategic in managing the local connections

*

CRITIQUE OF THE STRATEGIC BUSINESS MODEL
More balanced and realistic than the shareholder perspective.
Yet,
Unclear and inconsistent
government and business relationship is a flow of complex exchanges of influence, which is subjected to multiple social, political, and economic forces.
Difficult to be strategic in market place.
Business is a major initiator of change through its interaction with government.

*

THE STAKEHOLDER MODEL
Corporation locates at the center of an array of mutual relationships with stakeholders:
Primary stakeholders have immediate, continuous, and powerful impact.
Secondary stakeholders have less mutual immediacy, benefit, burden, or power to influence.
The model is an ethical theory of management , in which the welfare of each stakeholder must be considered as an end

*

THE STAKEHOLDER MODEL
While profits are important, business and social values are still important
Long term view is more important than short term view
Business perspective and value of reputation versus profit maximization
Better Business Bureau – 1912
Good Housekeeping Seal of Approval – 1909
Consumer Reports – 1936
Corporate Social Responsibility – 1979
Views community and environment as necessary factors to consider – not because of requirements
Focuses on customer confidence, employee loyalty, civic trust – (Commercials after oil-spills)
Many large corporations have adopted methods and processes to analyze their stakeholders and engage them.

*

WHO ARE STAKEHOLDERS?
A stakeholder is any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization.
a. The key stakeholder is the company or group that is the center or focus of an analysis.
b. Primary stakeholders include owners, customers, employees, suppliers, stockholders and the board of directors.
c. Secondary stakeholders include all other interested groups, such as the media, consumers, lobbyists, courts, governments, competitors, the public, and society.

CRITICS TO THE STAKEHOLDER MODEL
Unrealistic assessment of power relationships between the corporation and other entities
Too vague a guideline to substitute for the yardstick of profits
Not clear who or what is a legitimate stakeholder

*

COMPARISON OF THREE MODELS

*

OVERVIEW
The three models demonstrate that the choices involved in designing a country’s political and economic systems are not easy ones.
Therefore they provide some theoretical bases for our exploration of the question: how extensive a role government should play in a nation’s economic development.

64%12%17%7%Class Poll Spring 2019Less GovernmentModerate GovernmentMore GovernmentNot sure

PA 315
GOVERNMENT BUSINESS RELATIONS
CHAPTER 3
California State University San Bernardino
College of Business & Public Administration
Professor Sharon Pierce

*

HISTORICAL BACKGROUND ON GOVERNMENT

*

THE EVOLUTION OF GOVERNMENT’S ROLES
As American society has changed, so too have the expectations of government.
Examples of social changes include:
Need for big defense
The creation of big business
The desire for less risk and more stability
The demand for social architecture – k-12 schools to community colleges and state universities
Catastrophic Events: Johnstown Flood of 1889 and Hurricane Andrew in 1992
Hurricane Harvey – Texas
Hurricane Irma – Florida
Hurricane Jose – Hurricane Katia – Hurricane Maria

Our founding fathers wanted a limited government as they felt more government led to corruption
*

EXPECTATIONS IN JOHNSTOWN FLOOD, 1889
Federal assistance was not expected
President Benjamin Harrison organizes a fundraiser

*

QUESTION
The provision of disaster relief has increasingly become a federal responsibility in the last century.
True
False

*

*
HISTORICAL DEVELOPMENT OF GOVERNMENT
Anti-Central Government (1781-1787)
Small Government (1787-1887)
Moderate-Sized Government (1887-1933)
Big Government (1933-1970s)
Rightsizing Government (1970s-present)

*
Now let’s look at the evolution of government in a slightly different line.
The Anti-Central Government Era coincided with the Articles of Confederation and was relatively short-lived, stretching from 1781 to 1787.
The Small Government Era lasted from 1787 to 1887, during which time the country grew from 13 small colonies to 38 states spanning the continent. During the Small Government Era, the population grew to be 15 times the size it had been; the percentage that was urban versus rural grew from just 3.35 percent to 30 percent in that century.
The Moderate-Sized Government Era is defined as the period from 1887 to 1933, a time during which the economic GDP expanded greatly and which included the “age of invention.”
The Big Government Era, from 1933 to the 1970s, was ushered in by the Great Depression (1929-1939), followed closely by the vast and expensive Second World War, but also included a quarter-century post-war boom.
The Rightsizing Government Era began in the 1970s and presently continues, as the limits of government – to provide the level of services, the number of problems, and degree of governmental protection –began to exceed the expectations that had accumulated and the resources it was likely to get. During this period, GDP growth has slowed, real wages are often stagnant, and tough choices have to be made about addressing old problems, all while envisioning and implementing an ideal for the largely post-industrial society we are becoming.

  Anti-Central Government, 1781—1787
Provider of monetary and fiscal structure Minimal
  Mint money, request proportional taxes from the individual states, attempted to pay off debt
Provider of infrastructure Modest Cities would maintain streets
Purchaser Modest Cities would purchase some supplies
Regulator of Business Virtually none By states only (criminal laws)
Social architect Virtually none By states only (some education)
Service provider Virtually none By states only
Safeguard against (individual) risk Virtually none Raise an army for a common cause; Request states to use state militias for a common cause
Promoter of business Virtually none Appoint ambassadors

*

QUESTION
Which of the following is true about the Anti-Central government era in the US?
The federal government could only impose tariffs, not income taxes.
The federal government maintained a navy but not an army
The federal government was allowed to pay off the national debt
None of the above

*

  Small Government, 1787—1887
Provider of monetary and fiscal structure Modest Raise money through tariffs, mint money, Treasury Department, National Bank (1791-1836)
Provider of infrastructure Substantial Created a postal system and accompanying roads, transcontinental railroads
States and local: most roads, harbor improvements, support of bridges, drinking water in large cities
Purchaser Modest Transportation services, military supplies
Regulator of Business Virtually
none
Social architect Modest Morrill Land Grant College Act of 1862 (funds for higher education), set-asides of “federal” land for educational purposes
State and local: primary and secondary education
Service provider Modest Postal service (communications)
State and local: county hospitals, public libraries
Safeguard against risk Virtually
none
Promoter of business Substantial President Jefferson’s Louisiana Purchase – doubled the size of the United States
President Monroe 1823 – Monroe Doctrine foreign policy for the United States
Florida purchase, annexation of Texas, Mexican-American War, California, Alaska

Prior to the MORRILL LAND GRANT College – men in upper class
*

THE SMALL GOVERNMENT ERA (1787-1887)
Provider of
infrastructure

Promoter of
business

*

THE SMALL GOVERNMENT ERA (1787-1887)
Monetary and fiscal structure

Purchaser

Service provider

Social architect: democratizing higher education

Regulator of business, safeguard against risk

*

QUESTION
Which of the following was true in the Small Government era?
It spanned from approximately 1787 to 1887
If the expansion of the country is considered promotion of business, it did a great deal
Service provision was modest by all governments
All of the above
None of the above

*

  Moderate-Sized Government (1887-1933)
Provider of monetary and fiscal structure Substantial Federal Reserve, federal income tax (Sixteenth Amendment – 1913)
(1861 – Revenue Act but was brief as it was repealed by 1871)
(1894 – Congress enacted a flat rate income tax but was ruled unconstitutional the following year)
Provider of infrastructure Great Federal: postal airports
State and local: streets, public transportation, sidewalks, streets, sewage, water and electricity in all urban areas
Purchaser Modest Transportation services, military supplies

Regulator of Business Substantial Interstate Commerce Act of 1887 – to regulate business activities of railroads
Sherman Act (1890) – anti trust laws to regulate monopolie
Clayton Anti-Trust and Federal Trade Commission Act (1914) – strengthened Sherman Act and criminalized unfair trace practices (price fixing)
Food and Drug Act (1906) public outrage over unsanitary meat packaging
State and local: stronger zoning, comprehensive planning
Social architect Substantial Growth of 1-12 education, normal schools
Service provider Substantial Expansion of drinking water, irrigation water for rural areas, other utilities, rudimentary welfare systems
Safeguard against risk Minimal One time legislation to assist after disasters by state legislatures or Congress
Promoter of business Substantial Spanish-American War, give away of Western lands (e.g., land rushes in Oklahoma), Hawaii, Panama Canal

*

THE MODERATE-SIZED GOVERNMENT ERA (1887-1933)
Regulator of business

*

Monetary and fiscal
infrastructure
Infrastructure

Social architect
The Moderate-Sized Government Era (1887-1933)

*

The Moderate-Sized Government Era (1887-1933)
Service provider
Promoter of business

Safeguard against risk

Purchaser

*

QUESTION
With the rapid expansion of large corporations after the Civil War, the US federal government responded with anti-monopoly efforts such as the Interstate Commerce Act and the Sherman Anti-Trust Act before the turn of the century.
True
False

*

  Big Government, 1933 to 1970s
Provider of monetary and fiscal structure Great Required taxes to support insurance to counterbalance recessions and depressions—Social Security, Medicare, Glass-Steagall (protect deposits)
Provider of infrastructure Great Federal Highways Act, bailout of Penn Central, continued expansion of all transportation systems
Purchaser Substantial Large and technologically advanced military, materiel for civilian employees and services
Regulator of Business Substantial Securities and Exchange Commission in response to the Crash of 1929
National Labor Relations Act – granted workers the right to form unions/collective bargaining
Fair Labor Standards Act – set work week to 44 hours (reduced to 40 in 1950)
Age Discrimination Act – prohibited age bias
Occupational Safety and Health Act (OSHA) assured safe and healthful working condition
consumer protection laws (1960s to 1980s)
EPA – protects human health and the environment
Social architect Great National Parks, Work Progress Administration during Great Depression provided massive aid
mortgage support (Fannie Mae and Freddie Mac) – expand homeownership
Service provider Substantial Rural electrification, flood prevention, garbage and other “specialty” services
Safeguard against risk Substantial Social Security, unemployment insurance, Medicare, Medicaid, FEMA predecessor agencies
Promoter of business Substantial Tariff war at beginning of Great Depression, informal leader of world economy via international finance institutions; creation of economic development agencies

*

THE BIG GOVERNMENT ERA (1933-1970S)
Social architect
Social Security 1935, Medicare 1965; Public parks, Works Progress Administration (peak: 3 million); Fannie Mae for mortgages

Monetary and fiscal infrastructure

Infrastructure

*

THE BIG GOVERNMENT ERA (1933-1970S)
Regulator of
business
Service provider
Promoter of business
Safeguard against risk

Purchaser

*

QUESTION
In the era of Big Government, the federal government moved its attention from legislation regarding monopolies to focus on regulating Wall Street, labor, consumer and employee safety, among others.
True
False

*

  Rightsized Government, 1970s to the present
Provider of monetary and fiscal structure Great but shifting Use of interest rates by Fed; repeal of Glass-Steagall but addition of new regulations in 2010 (Dodd-Frank); bailouts of Wall Street (banks and AIG) and main street (automakers)
Provider of infrastructure Reduced
Purchaser Substantial Military and basic material
Regulator of Business Reduced and shifting Deregulation of transportation, airlines, banking, finances
Regulation of some banking and finance; Sarbanes Oxley 2002
Social architect Reduced and shifting Reform of welfare (limitations); defunding of public higher education as well as K-12
Service provider Reduced and shifting Expansion of privatization in some areas, but expansion in healthcare ; postal reorganization
Safeguard against risk Substantial Affordable Care Act (2010), occasional extensions of unemployment insurance from 26 week base
Promoter of business Substantial but shifting CA makes it more difficult to have local economic development agencies

*

THE RIGHTSIZING GOVERNMENT ERA (1970S-PRESENT)
Regulator of business

Social architect

Infrastructure

Service provider

*

Monetary and fiscal infrastructure

Promoter of business
Safeguard against risk

Purchaser

THE RIGHTSIZING GOVERNMENT ERA (1970S-PRESENT)

*

QUESTION
As a promoter of business, California is seen as a supporter of economic development agencies?
True
False

*

*
SUMMARY OF GOVERNMENT’S ROLES INTERACTING WITH AND SUPPORTING BUSINESS

*
In summary, historically despite the reference for small government, the US government have gradually adopted many roles that interact and support business.

QUESTION
Despite the historical preference for small government, American governments’ roles and responsibilities are constantly expanding.
Why did this happen?
What are the factors that lead to government expansion?
What do you think are the effective ways of rightsizing or shrinking government?

The roles and responsibilities change over time including expanding and decreasing because of people, culture, and time. As America expands the roles and regulations of the government must expand as well.
Factors that lead to expansion was war, western expansion, industrial revolution
Effective ways to address the dilemmas are through regulation and privatization
*

*
*
Our founding fathers wanted a limited government as they felt more government led to corruption
*
*
*
*
Now let’s look at the evolution of government in a slightly different line.
The Anti-Central Government Era coincided with the Articles of Confederation and was relatively short-lived, stretching from 1781 to 1787.
The Small Government Era lasted from 1787 to 1887, during which time the country grew from 13 small colonies to 38 states spanning the continent. During the Small Government Era, the population grew to be 15 times the size it had been; the percentage that was urban versus rural grew from just 3.35 percent to 30 percent in that century.
The Moderate-Sized Government Era is defined as the period from 1887 to 1933, a time during which the economic GDP expanded greatly and which included the “age of invention.”
The Big Government Era, from 1933 to the 1970s, was ushered in by the Great Depression (1929-1939), followed closely by the vast and expensive Second World War, but also included a quarter-century post-war boom.
The Rightsizing Government Era began in the 1970s and presently continues, as the limits of government – to provide the level of services, the number of problems, and degree of governmental protection –began to exceed the expectations that had accumulated and the resources it was likely to get. During this period, GDP growth has slowed, real wages are often stagnant, and tough choices have to be made about addressing old problems, all while envisioning and implementing an ideal for the largely post-industrial society we are becoming.
*
*
Prior to the MORRILL LAND GRANT College – men in upper class
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
In summary, historically despite the reference for small government, the US government have gradually adopted many roles that interact and support business.
The roles and responsibilities change over time including expanding and decreasing because of people, culture, and time. As America expands the roles and regulations of the government must expand as well.
Factors that lead to expansion was war, western expansion, industrial revolution
Effective ways to address the dilemmas are through regulation and privatization
*
Anti-Central
Government,
1781—1787
Small
Government,
1787—1887
Moderate-Sized
Government,
1887—1933
Big
Government,
1933—1970s
Rightsizing
Government,
1970s—present
Provider of
monetary and
fiscal structure
Minimal

Modest Substantial Great Great but shifting
Provider of
infrastructure
Modest Substantial Great Great Reduced
Purchaser
Modest Modest Modest Substantial Substantial
Regulator of
Business
Virtually none Virtually
none
Substantial Substantial Reduced and
shifting
Social architect
Virtually none Modest Substantial Great Reduced and
shifting
Service
provider
Virtually none Modest Substantial Substantial Reduced and
shifting
Safeguard
against risk
Virtually none Virtually
none
Minimal Substantial Substantial
Promoter of
business
Virtually none Substantial Substantial Substantial Substantial but
shifting