Overview
How do well-intentioned economic development programs create unfair advantages for some businesses and hurt other businesses? This lesson will explore unintended consequences of government subsidies and tax breaks for businesses, the impact of lobbying on policy decisions, and how public pressure can influence positive change.

Enter your email address below to access these resources

To help ensure our emails reach your inbox, you may provide a personal email address to bypass school spam filters.

Lesson Insights

Grade level and subjects
• Recommended for grades 6-12
• Subjects: Business and Government
• Works in Classroom, Hybrid, and Homeschool settings

What students will learn
By the end of this lesson, students will be able to:
• explain the influence of lobbying and political connections on government subsidies and regulations in the agricultural industry;
• evaluate the consequences and unintended consequences of government programs aimed at economic development;
• argue whether it is justified for taxpayer money to be used to help businesses; and
• determine the beneficiaries of the U.S. farm subsidy system.

Key concepts and terms covered
Abatements, Lobbyists, and Subsidies.

Sample discussion questions
• What does the term "corporate welfare" mean and how is it illustrated in the case of IKEA in Memphis?
• Discuss the unintended consequences mentioned in the video. What does it mean that they are “unintended”? Does “unintended” mean that they could not have been foreseen? Why/Why not?
• How does lobbying by large agricultural businesses impact government policies and subsidies? Do you think it’s fair? Why/why not?
• The video informs us that two years later, Ikea didn’t have as many jobs as it promised. Should there be any consequences?
• Restaurant owner Pete Eshelman says, “It's all about eliminating competition.” What did he mean by that? What evidence in the video supports that claim?

What’s in the free teacher’s guide
This printable 9-page Teacher's Guide includes a lesson description, learning objectives, key vocabulary, a fill-in viewing guide with answer key, discussion and analysis questions, and classroom activities.

Standards alignment
Aligned to state standards — use the SITC Standards Tool to match this video to the standards in your state.