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REVIEW – WHERE IS THE U.S.? WHY? WRITE IT DOWN IN 3
SENTENCES.
A
BC
D E
F
How do we know when our economy is
doing well?
WHAT IS THE DIFFERENCE BETWEEN MICRO AND
MACRO?
WHAT IS OUR GOAL??????
DEVELOP A LIST OF GOALS1 MONTH, 6MONTH, 1YR, 5YR, 10YR
Highest Standard of Living
Economic Freedom“Choices”
Buy/Sell, Employment, etc…
Economic Efficiency“Get the most from the fewest”
Invest in Human Capital & Technology
Economic Equity“Equal Opportunity”No Discrimination
Economic Security“Everyone stays Active”Social Security, Welfare,
Unemployment Insurance, Medicaid/Medicare
Full Employment“95.5%”
“Everyone who wants a job has one”
Price Stability“Enable people to budget”
Continue educated buying and selling
Economic Growth“Increase the PPC”
“More Technology, Resources, Reinvestment of Profits”
Japan after WWII
WHAT DO WE NEED TO ENSURE ECONOMIC
SUCCESS?????
Row 1 – Economic Freedom
Row 2 – Economic Efficiency
Row 3 – Economic Equity
Row 4 – Economic Security
Row 5 – Full Employment
Row 6 – Price Stability
Row 7 – Economic Growth
DRAW THEM!
Rank the USA’s Social and Economic Goals
1
2
3
4
5
6
7
Don’t forget to tell me why!!!!!!!!!!!
TIME TO THINK
ECONOMIC EQUITY
http://www.pbs.org/newshour/bb/business/july-dec11/makingsense_08-16.html
FULL EMPLOYMENT
PRICE STABILITY
INFLATION
•The CPI is a relative measure of how consumer prices change for a representative “basket” of goods, purchased by the majority of urban consumers.
http://www.bls.gov/cpi/relimp_2002.pdf
HOW IS PRICE STABILITY MEASURED
HOW DOES INFLATION AFFECT US?
•Who is it good for?•Why is too much bad for most of us?
ECONOMIC GROWTHGDP
?
Period Class Score What an A looks like
Grade
1 Full Employment
9.2% Unemployment
4-6% F
2 Price Stability 3.6% since 2010
2% B
3 Economic Growth
1.3% 3% annual
F
4 Debt/Deficit
U.S. ECONOMIC REPORT CARD
Write down the grades you would
give our economy in each category… and
why?
What is a
A deficit is when spending is greater than revenue (taxes)during a period of one year.
What do you think the U.S. deficit is?
What is a
Debt is the accumulation of deficits
http://www.usdebtclock.org/
What does a deficit and debtlook like?
$10,000
$1,000,000 can be stuffed in a grocery bag.
$100 million can fit on a pallet
$1 Billion
$1 Trillion DOUBLE STACKED
Projected 2010 deficit is $1.7 trillion
$1 trillion of $1 stacked one on top of each otherreaches 68,000 miles into space or 1/3 the distance
to the moon.
To put things in perspective, current estimates put the number of stars in the Milky Way at somewhere between 100 and 400 billion.
Do we ever sacrifice one goal to gain another goal?????
Limiting Imports??
Entitlements?????
Increasing Minimum Wage????
TRADE-OFFS ANYONE???
CORE OF CAPITALISM
Economic Freedom:Free to choose jobs, what to buy/sell, employees
Voluntary Exchange Buyers and sellers free to do what they want
CompetitionProducers compete with one another. Lowers cost and Increases efficiency
Private Property RightsPeople control possessions and can gain wealth
Profit MotiveIndividuals and Businesses can make and keep profits.
What is it? What is it not?
Where are you most likely to see the word?
What is ONE word to help you remember it?
CAPITALISM
The Entrepreneur The Government The Consumer
“The Spark plug of the economy”-risk takers-innovators-they organize the 4 factors of production
Protector of consumers rights and freedom, private propertyProvider of services like national defense, welfare, education, public goodsConsumer of resources 2nd largest only to citizensRegulator of markets to ensure competition and safety, redistribute income, limit market failuresPromoter of National Goals
Consumer Sovereignty- rulers of the market-Answer the 3 basic questions
KNOW YOUR ROLES!!!!!!!!!!!!!!!!!!!!
Mixed Economy
Modified Private Enterprise Economy
CONSUMER SOVEREIGNTYWE RUN THIS ECONOMY!!!!!!!!!!!!
