Growth and Development

You will need to complete the note guide as the PowerPoint is discussed. You will be introduced to several economic terms throughout this PowerPoint. Write the definitions of key economic terms on your note guide. Economic terms that need to be defined are in red.

Cattle, Cotton, and Crude Beef, Bales, and Black Gold The legs, fiber, and grease of the Texas economy

What are we talking about when we speak of the economy? The economy is the wealth and resources of a nation and how they are managed. In the U.S. and in Texas, we have a free enterprise or market economy.

In a free enterprise economy individuals have the right to own businesses and to make money with limited government interference. Simply stated, you are free to buy what you want, sell what you want, make what you want, and provide any service you want with very few restrictions.

Imagine that you are an entrepreneur, or a risk taking business person.

used to produce goods or services. You have capital that you would like to invest in a business. Capital is the… equipment, factories, or money used to produce goods or services.

You want to invest your capital wisely so that you make a profit, or make money.

In the box on the student note guide, list three business in Texas where you would invest you capital. For each business, write one or two sentences explaining why you chose that business.

Some of you may have invested in businesses that have historically been important in the Texas economy such as… oil cattle cotton

Historically, the Texas economy has fallen into two categories: Agribusiness and Petroleum Industry Agribusiness- business related to the production, processing, and distribution of agricultural products.

Petroleum Industry- the production and distribution of oil and natural gas.

The agribusiness and petroleum industries have been good to Texas, but these businesses can be risky because they are greatly affected by a boom/bust cycle in the economy. Boom Boom Bust Bust

A boom/bust economy is one that has a cycle of intense highs and lows. Simply put, when things are good they are great, but when they are bad, they are terrible.

When the economy is booming, the prices of cattle, crops, and oil are high, thus bringing profit to Texas When the economy is in a bust cycle, prices are low and small profits are made.

Many years ago Texan entrepreneurs realized that an economy based on businesses that are affected by the boom/ bust cycle would not be the best for the state’s economy.

Diversification, or increasing the variety of products, has been key to a strong Texas economy. Texas has a very strong economy today because we have diverse industries.

The next slides are on the modern Texas economy The next slides are on the modern Texas economy. List these industries in the “Texas Industries Today” section of your student note guide. Agribusiness and the petroleum industry are still strong in Texas today, but we have developed the following industries as well:

Petrochemical Industry Petrochemicals are chemicals or products made from petroleum or natural gas such as: rubber synthetic fibers plastics cosmetics

Computer/ Electronics Industry

Telecommunications Industry

Aerospace Industry

Service Industries banking and financial education medicine and health care

Real Estate Industry

Tourism Industry

These industries, coupled with our geography and abundant natural resources, make Texas a very strong presence in the global marketplace.

What is important to remember about the “Growth and Development” of Texas? What is the overarching theme?

Texas’ strong standing in the world today originated from its diverse leaders, geography and resources.

We’ve come a long way from: cowboys to the cosmos!