Employment, Wages & Taxes

Employment, Wages & TaxesMacroeconomicsThe study of the economy as a wholeGovernment decisions about the economy

UnemploymentCalculate by number of people actively seeking a job who have been fired or laid offDo not count the retired or underemployedUnderemployed-have a job but do not make enough money, level of job not up to education or qualifications

Unemployment Insurance:You pay money out of your check in case you lose your jobMinimum WageMinimum amount a business must pay youHow does this hurt businesses?Should the government raise minimum wage? What may happen if they do?

Inflation & DeflationInflationDeflationIncrease in the cost of goods and services over a period of timeExamples?Prices fall Hurts businesses

Consumer Price Index (CPI): compare average prices of goods and services from one year to the lastTypes of TaxesDirect TaxIndirect TaxTaxes you pay from your salary/wagesIncome taxTax on what you buySales tax-depends on the state, percent of tax on items you buyWhat has sales tax in N.J.?What doesnt?

Types of TaxesProgressive TaxRegressive TaxThe amount you pay increase by how much money you makeIncome tax-the tax you pay from your wagesA tax that can hurt the poorIt takes a higher percent from lower wage earners

Types of TaxesCorporate TaxExcise TaxTaxes that big businesses pay from their profitsTax on things you buy that are considered sinfulAlcohol, etc

What does the government use our taxes for?Public goodsRedistribute Income to help peopleTypes of Public GoodsMerit GoodsDemerit GoodsProvided by the government through you tax money that help the communityRoads, libraries, museumsPeople pay tax on them because they are seen as not good for societyAlcohol, tobacco

Types of TaxesTariffTax on items coming into the countryImports

Redistribution of IncomeSocial SecurityDisability InsuranceTaken out of your payCollect it after you retirePeople working now pay for those who are retired nowHelps elderly and disabledTaken out of your payIn case you ever become disabled and cant work

Redistribution of IncomeWelfareUnemployment InsuranceHelp the poorTaken out of your checkCollect it if you lose your jobPeople working now pay for those who are unemployed

Redistribution of IncomeMedicaidMedicareHealth insurance for the PoorHealth insurance for the retired/elderlyDisabled