Overview
What happens when politicians who oppose socialism start taking ownership stakes in struggling companies? In this video, John Stossel explores how government bailouts and subsidies blur the line between capitalism and socialism. Featuring economist Dan Mitchell, it raises a key question for taxpayers: if government is going to spend billions rescuing companies, is partial ownership better than giving the money away, or should government stay out of business altogether and let the market decide winners and losers?

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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:
• define socialism and explain how it differs from capitalism;
• identify examples of government involvement in private business discussed in the video;
• analyze arguments for and against government taking ownership stakes in private companies;
• evaluate whether bailouts and subsidies help or harm the overall economy; and
• formulate their own reasoned opinion on whether government should intervene in markets or let competition determine winners and losers.

Key concepts and terms covered
Bailout, Capitalism, Creative Destruction, Crony Capitalism, Means of Production, Socialism, Stake, and Subsidy.

Sample discussion questions
• What does socialism mean?
• What does Dan Mitchell mean when he says politicians “pick winners and losers?”
• Do you think bailouts and subsidies help or harm the economy overall? Explain your view.
• If taxpayers fund bailouts, should they have any say in how those companies are run?
• If people and companies were free to rise or fall on their own, what benefits might society see?

What’s in the free teacher’s guide
This printable 22-page Teacher's Guide includes a lesson description, learning objectives, key vocabulary, a fill-in viewing guide with answer key, discussion and analysis questions, classroom activities, and the full video transcript.

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