1. Unit 13 – Georgia Produces; Georgia’s Trade; Starting a Business; Sources of State Revenue; Personal Money Management

2.  Trade in Colonial times was with Native Americans and shipping goods back to Europe.  Antebellum trade involved wagons, river boats, steam ships and trains.

3.  Free Trade is trade between countries that is unrestricted by tariffs.

4.  Poultry  Cotton  Tobacco Leaf  Peanuts  Peanut Products  GOLD KIST – nation’s 2 nd largest poultry company is in GA.

5.  Soft drinks, carpet, transportation equipment, & forest products  Coca-Cola – most recognized GA product  Shaw Industries – largest manufacture of carpet in the world  Lockheed-Martin in Marietta makes C- 130 aircraft for global customers  Georgia-Pacific: Worldwide supplier of forest products: pulp, paper, & building products

6.  Delta Airlines: Atlanta based air carrier  United Parcel Service (UPS): Largest single transportation network in the world.  Both help move Georgians and cargo across the globe every day.  Shipyard at Savannah & Brunswick also play a role in international shipping.

7.  Entrepreneur: A person who takes a risk to produce goods and services in search of a profit.  A profit is a company's earnings after all expense are paid.  Profit provides incentive for entrepreneurs.

8.  Entrepreneurs invest personal resources and risks losing those resources if the business fails.  They share the risk when borrowing from banks or a wealthy investor.  Entrepreneurs are good for the economy.  Georgia Entrepreneurs:  Delta Airlines  Coca-Cola  Georgia- Pacific  Home Depot

9. SALES TAXFEDERAL GRANTS  “Consumption Tax”  A sales tax which is placed on things that people buy and consume.  Cars, groceries, clothes, etc.  U.S. Government gives states federal grants to help fund education or build interstate highways.

10. PERSONAL INCOME TAXPROPERTY TAXES  States and the U.S. Government tax the earnings of individual citizens & money they earn from investments.  Private homes, land, and business property and taxed according to their value.  Major source of revenue for the local governments.

11.  Revenue is used to pay for state & local programs like education, roads, public transportation, police & fire protection.  Citizens pay taxes… citizens use services.

12.  GA Constitution says that the State must operate under an annual budget.  That budget details how much money is spent where.  The General Assembly must pass an “appropriation” which permits the spending from the budget.  Many levels of the State Government participate in planning the budget.

13.  Process begins in Spring  Head of each agency decides how much money they need during the year.  In the Fall, the Office of Planning & Budget looks at the requests and decides what can be cut.  In January the Governor’s proposed budget is presented to the General Assembly.  State law requires that the budget be balanced; meaning the state cannot go into debt – EVER.

14.  Money is the medium of exchange to buy goods and services.  Your income provides you with money to spend on whatever you choose.

15.  People use CREDIT to buy something now and pay for it later.  When you use CREDIT, you have to pay the amount you borrowed plus and additional amount of interest.  Banks make money from interest payments – interest is a fee paid for the use of someone else’s money.

16.  Putting money in a bank or credit union can make you EARN interest.  Saving money allows you to increase your money by INVESTING.

17.  Ways to Invest Your Money:  Stocks and Bonds  Real Estate  Natural Resources  Collectibles  Business (your own or someone else’s)

18.  The Federal Deposit Insurance Corporation (FDIC) was created in the New Deal by FDR in the Great Depression.  The FDIC provides insurance for Americans who have money in banks.

19.  The FDIC insures banks in case of bank failure.  If a bank fails, $100,000 of your money is insured by the Federal Government.  Since the FDIC was created, no American has lost money to a bank due to bank failure.