Warm-Up: Stock Market Review 1. _________ – unit of ownership in a company 2. _________________ – a place for trading stocks 3. Goal is to sell stock for ________ than you paid for it 4. The ___________ for a stock makes its value go up and down 5. __________ – money gained from a _________ in stock value 6. __________ – money lost from a ________ in stock value 7. ______ market – market where most stock values are going up 8. ______ market – market where most stock values are going down 9. Margin buying – buying stocks with ________________________; risky 10. _____________ – buying and selling stocks to make a quick profit; high risk but chance of high reward

THE GREAT DEPRESSION Today’s Episode: So How Bad Is It Really Right Now? Learning Target 1: Gov’t Policy prior to the Great Depression

1. T/F: We are currently in a recession 2. Use the root word of recession to explain what it is Warm-up: Discuss with the person closest to you

Warm-up: Are we still in a recession today? Use the graph to WRITE an answer. How do you know? Real GDP (Gross Domestic Product) = total value of the economy

Economy  ECONOMY  The production, distribution, and consumption of things you can buy Production: Distribution: Consumption: Etymology: derived from Greek oikonomos "household manager," from oikos "house" and nemein "to manage"

How might this news story be related to the economy?

Examples of ECONOMY 1. The war altered the country's economy by… 2. An increase in tourism will help the city's economy (How?) 3. Create your own example showing you understand the definition.

Private vs. Public  What’s the difference?  Can you think of an example?

Private vs. Public

Laissez faire anticipatory set  You’ve got work to do when you get home. Chores, homework, etc. Do you work better with mom or dad checking in, staying on top of you, or is it better when they leave you alone? Do your habits change based on their presence?  Teacher gives class a list of learning targets and tells you to teach yourself and be ready to take a test on Friday. What happens?  Coach says to practice on your own in preparation for a game/meet. What happens?  What factors determine the outcome? (e.g. common goal, motivation re: goal) Why do they do what they do? Does it ever annoy you?  Business has an objective, work to do. In 1920s, the parents/teacher/coach/gov’t let the kids do what they wanted under the assumption that things would work out

  RegulationPolicy

Working together Laissez faire article

Flow chart review Share three things you learned with the person closest to you, no repeats Closure

THE GREAT DEPRESSION Today’s episode: Hands Off My Economy, Dude LT 1: Gov’t Policy prior to the Depression

Icebreaker  Get a name and answer to the following question from three people you do not know  If you could eat only one food/dish for the rest of your life, what would you get?

Warm up…  Answer on your laissez faire handout from yesterday in the economy section: write your own example of a sentence using the word “economy” correctly.  Jot down an example of something in the private sector and something in the public sector of the economy

Laissez faire is the government’s economic policy prior to the Depression

Laissez faire – hands off

Gov’t Policy prior to the GD: Laissez-faire  Laissez-faire  Economic policy meaning hands-off – government chooses NOT to get involved in the economy  Based on belief that government spending will increase economic trouble [Why? Reps vs. Dems]  Was the government’s economic policy of the 1920s  Led to economic boom but lack of gov’t regulation [control] allowed for risky actions in business (e.g. margin buying, speculation)

Closure  Write one example from your life where laissez- faire might be a good policy and one that might not work so well.  Example: Mr. Stone and my class

Pros and cons of regulation