1. Economic Policy by Jared, Chris, and Andreas

2. Wal-Mart ●Inflation: Increases the prices of its goods over time

3. Wal-Mart ●SEC: Makes sure Wal-mart isn’t lying to people, people understand the risk of investing ●Unions: Employees will be part of a labor union that Wal-Mart might have to negotiate with (Collective Bargaining)

4. Wal-Mart ●Occupational Health and Safety Administration: Forces companies to have safety regulations ●Globalization: Countries rely on each other for goods and services

5. Economic Ideology Republicans: Low taxes, less restrictions on businesses (supply-side) Democrats: Progressive taxes to fund a wide variety of public programs to better the economy, help the needy (keynesian)

6. ●The Bureau of Labor Statistics surveys the population once a month ●% of people without a job and looking for work Unemployment Rate

7. Consumer Price Index The CPI measures the cost of 80000 different goods and services

8. The Fed ●The FOMC (Federal Open Market Comittee) sets the rates banks can charge each other ●The Fed buys and sells bonds from banks to determine how much money the banks have to lend to people.

9. The Fed cont’d ●Banks have more $ to loan: cheaper rates ●Banks have less $: interest rates go up.

10. Fiscal Policy ●Fiscal policy is how the president manages federal taxing, borrowing and spending, ●Monetary policy: The work of the fed

11. Keynesian Economics ●During times of economic downturn, the government can stimulate the economy by deficit spending ●Increased taxes, used for public programs

12. John Maynard Keynes

13. Supply-Side Economics ●Stimulate the economy by the consumers spending ●Lower taxes on businesses to raise production, to try and lower prices and control inflation

14. Controlling the Economy ●The private sector is much larger than the public sector (government) ●Private sector dominates the economy

15. World Trade Organization ●International organization dealing with the rules of trade between nations

16. WTO Pros & Cons ●Foreign governments can trade, settle trade disputes ●“optimal use of the world’s resources, sustainable development and environmental protection.” ●Rules are written by and for corporations, lack of public opinion representation

17. Major Policies Business: ●Sherman Act of 1890 (first antitrust act) ●Accounting Oversight Board

18. Major Policies Consumers: ●Food and Drug Act of 1906: first consumer protection policy ●FDA: Regulates for safety of products ●Consumer Product Safety Commission

19. Major Policies Labor: ●National Labor Relations Act: Protect the rights of employees and employers ●Unemployment compensation ●Minimum wage

20. The Government and Businesses The government benefits businesses by: ●Patents and copyrights ●Department of Commerce helps with exports ●Fund Research ●Small Business Administration helps with loans and advertising

21. Consumer Benefits FDA: Ensures safety of food and drugs FTC: Since 1960’s the FTC has taken up consumer protection and lending regulation

22. Law Provisions ●National Labor Relations Act (1935): Unions have the right to negotiate with management ●Taft-Harley Act (1947): Allows right-to-work laws, prohibits unfair Union practices

23. Democracy and Econ. Policymaking ●Long-term advice is often contrary to the immediate help voters want ●Leads to a lot of conflict making final decisions

24. Terms to Know Capitalism: Production is private and profit- based, non-interference from the government Mixed Economy: Government is involved heavily in economy. “regulator, consumer, subsidizer, taxer, employer and borrower”

25. Terms to Know Multinational Corporation: Huge company that operates and has holdings around the world Labor Union: Workers organized for collective bargaining Collective Bargaining: Determine acceptable conditions

26. Terms to Know Inflation: Rise in prices for goods and services Laissez-Faire:Government is not involved in economy Monetary Policy: Government controlling money supply in private hands Fiscal Policy: Describes the impact of federal budget on the economy

27. ... More Terms to Know Monetarism: Economic theory: money supply is key, needs to be controlled to avoid inflation Fed. Reserve System: Seven Board of Governors members with 14-year terms create lending policy Antitrust Policy:Ensures competition, prevents monopolies