Lesson 16 — Activity 3: Government Intervention

It is a responsibility of the government to help improve or maintain our quality of life. To do this, the government sometimes uses its powers to affect the economy of a community for various groups of people.

For example, the Canadian government provides financial aid to farmers when their business is suffering due to things beyond their control. When mad cow disease was found in Canadian cattle, the border to the United States was closed to Canadian cattle farmers, and the farmers could not sell their cows to the United States. The government helped farmers by giving them some of the money they lost, due to lost sales. Otherwise, the quality of life of the farmers would have suffered.

Social programs are services provided by the government and paid for by taxes. They aim to reduce the economic inequalities in society and promote the well-being of all citizens. These social programs include health care, education, affordable housing, unemployment benefits, pensions, low-income support, support for seniors, support for people with disabilities, and support to children and families.

These special programs help people in different circumstances, such as raising children (child tax benefits), entering retirement (Canada pension), sustaining job-related injuries (workers' compensation), and losing a job (employment insurance). These programs are important to Canadians as they contribute to improving our quality of life.

Take a look at two examples below of social programs that are provided by the government to citizens of Canada.

Self-check!