Unit 5 Part 2: Economic Challenges: Unemployment, Poverty, and global Impact

Describe the impacts/consequences of Globalization Bellwork Describe the impacts/consequences of Globalization

Unit 5 Part I Learning Targets I can describe the unemployment rate I can identify the factors used to create the unemployment rate

1. Why should we care about unemployment in our country? Whole class question… 1. Why should we care about unemployment in our country? 2. What is the current unemployed percentage in Michigan?

Michigan’s current Unemployment rate is… 4.6 % Sept 2016 We are currently ranked 22nd in the nation with 50th obviously being the worst rank

What is the Unemployment Rate? Unemployment Rate = percentage of the labor force that does not have a job The labor force are people above age 16, and below 65 and are 1. Looking for work actively 2. Have a job

Continued… No job + looking for work + part of labor force = can counted as unemployed That is it!! Who does that leave out?!

Who does that leave out? 1. Discouraged Workers: people who have wanted a job but have stopped looking Stiff competition for one job Frustration, depression 2. Underemployed: workers who have jobs below their skill level or work part-time but desire full time work

HW Calculating Unemployment Video Guide If time: One page Econ Reading

Do Now What is the unemployment rate? Explain the factors that are left out of the official government calculation.

I can describe the 4 different types of unemployment Learning Target I can describe the 4 different types of unemployment

4 Types of Unemployment 1. Frictional Unemployment: temporary job loss when worker moves from one job to another Healthy part of the economy: finding better jobs, actor, musician Graduating college How is Mr. Said an example?

4 Types of Unemployment 2. Structural Unemployment: Changes in technology, needed skills, and changes in consumer tastes can leave people jobless Ex: CD players, iTunes, other fads that are now dead How can better technology hurt job growth?

4 Types of Unemployment 3. Seasonal Unemployment: joblessness that happens because of changes in weather or time of the year Retail stores Agriculture

4 Types of Unemployment 4. Cyclical Unemployment: joblessness due to recessions and economic downturn. The worst kind of the 4.

What kind of unemployment? STRUCTURAL

What type of unemployment? FRICTIONAL

What type of unemployment? SEASONAL

What type of unemployment? CYCLICAL

Answer Key C F S

Agenda & Your Choice… (1) Create 4 political cartoons (color) demonstrating your understanding of the types of unemployment (2) Solve these 4 types of unemployment by providing sound solutions using your prior economics and social studies knowledge

Review Slide 4 diff types of unemployment What is left out of the unemployment rate? Transitional economies and their impacts Outsourcing and other factors that influence globalization (multinationals, free trade!) Understand what NAFTA is and good/bad General good/bad of globalization YOUR NOTES! CONSTRUCTED RESPONSE

Agenda 1. In your table groups, complete the first part of your assignment titled “Types of Unemployment” Using your knowledge work together to finish the 9 problems on both of your papers. Look up when done & be ready to share…Do not move on yet…

Internet Activity City Data: Dearborn Unemployment Analysis

Bellwork What was an interesting piece of info/data you would like to share about our internet activity?

Inflation Learning Targets: Describe what causes inflation Explain how inflation affects the economy

Is 1 million dollars worth in 2014 or in the 1960? Why? Question Is 1 million dollars worth in 2014 or in the 1960? Why? https://www.youtube.com/watch?v=jTmXHvGZiS Y https://www.youtube.com/watch?v=cKKHSAE1gIs

What is inflation? Inflation: when the general level of prices rise in the economy As inflation rises, every dollar you own buys a smaller amount of a good or service. Causes include strong demand, rising costs, and most importantly the growing supply of money in the economy More $$$ supply = More inflation

Examples of Goods A new home in Brooklyn, NY cost $2,500 (1853) A routine doctor’s visit cost $2 (Florida, 1852) A dozen pairs of Levi Strauss blue jeans cost $13.50 (1874) One pair of shoes cost $0.98 (1875) One suit cost $10.00 (1875) One Oldsmobile cost $650 (1904) Total annual cost of Cornell University, including living expenses was $1,400 (1927) One movie ticket cost $1 (Chicago, 1978)

So… Is inflation good or bad? (Hint: Think of the pic)

Hyper Inflation Hyperinflation: When inflation goes insanely high! Can you imagine trying to spend millions of dollars just trying to buy food? Welcome to Zimbabwe… https://www.youtube.com/watch?v=mM3_z2RB3YU

Consequences Today Too much money creates inflation and increases the possibility of a recession The main issue today is that wages are not rising fast enough to meet rising prices Economic Inequality

CPI Consumer Price Index: used to measure price changes over time for commonly used goods/services Most accurate way to measure inflation http://www.cnbc.com/2015/09/01/the-abcs-of-cpi- what-is-the-consumer-price-index.html

HW CPI Activity: Babe Ruth Salary Inflation