TraditionalMarketCommand REVIEW – WHERE IS THE U.S.? WHY? WRITE IT DOWN IN 3 SENTENCES. A B C DE 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 GOALS 1 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 Don’t forget to tell me why!!!!!!!!!!! TIME TO THINK

ECONOMIC EQUITY y-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. 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 GROWTH GDP ?

PeriodClassScoreWhat an A looks like Grade 1Full Employment9.2% Unemployment 4-6%F 2Price Stability3.6% since 20102%B 3Economic Growth1.3%3% annualF 4Debt/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

What does a deficit and debt look 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 other reaches 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 Competition Producers compete with one another. Lowers cost and Increases efficiency Private Property Rights People control possessions and can gain wealth Profit Motive Individuals 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 EntrepreneurThe GovernmentThe Consumer “The Spark plug of the economy” -risk takers -innovators -they organize the 4 factors of production Protector of consumers rights and freedom, private property Provider of services like national defense, welfare, education, public goods Consumer of resources 2 nd largest only to citizens Regulator of markets to ensure competition and safety, redistribute income, limit market failures Promoter of National Goals Consumer Sovereignty - rulers of the market -Answer the 3 basic questions KNOW YOUR ROLES!!!!!!!!!!!!!!!!!!!! Mixed Economy Modified Private Enterprise Economy

CONSUMER SOVEREIGNTY WE RUN THIS ECONOMY!!!!!!!!!!!!