1. Objectives Discuss investment activities that promote economic growth Explain borrowing activities by government. Businesses and consumers Describe future concerns of economic growth Essential Question – how does the government borrow money?

2. Investment Activities How are you making an investment right now? –You are investing in your future right now by being in school –Companies invest all the time by buying buildings and equipment

3. Capital Spending Capital Spending refers to money spent by a business for an item that will be used over a long period. Capital projects Involve spending by businesses for items such as land, buildings and equipment and new products.

4. Where does the moola come from for all these capital projects!???!? Personal Savings Stock investments Bonds

5. Personal savings….not much else to explain What are some forms of personal savings?

6. The Stock Market -Corporations are a major type of business org. -Businesses can’t come up with all the money on their own so people invest in them Stock Represents ownership in a corporation

7. David Choe – graffiti artist Multi-millionaire overnight! Was given the choice for $60,000 or stock to spray paint the walls of Facebook’s office. He chose stock – now worth more than $200,000,000! Painting Video Walters Interview

8. What causes the value of stocks to change? Affected by many factors, but the main one is SUPPLY and DEMAND –If a company has higher earnings, more people will DEMAND it’s stock and want to buy it –Causes the value of stock to increase

9. Stock Market Activity Go to www.yahoofinance.com

10. The Bond Market Another investment activity involves the sales of bonds. If you purchase a bond, you are a creditor…it means you lent money to the organization bond A bond represents debt for an organization.

11. Government Debt If a surplus exists, government may reduce taxes or increase spending on various programs Budget surplus When the government spends LESS than it takes in.

12. Government Debt Budget deficit When the government spends MORE than it takes in. This happens more often

13. Government Debt National debt The total amount owed by the federal government www.usdebtclock.org