1. Just Think…Don’t Speak Why do you think our society pushes young people to work and get jobs as soon as possible? If you have a job right now, why did you get one in the first place? How much of your check is actually spent on YOU?

2. Macroeconomics

3. Topics In this Unit Jobs and Their Wages How the Government Makes Money What does the Government Spend Our Money On

4. What is Macroeconomics? The study of economics as a whole Deals with things like… Employment Gross Domestic Product Inflation Economic Growth Population Income

5. Labor Most vital part of our Economic System Main aspect by how we are measured as people Means Personal Satisfaction –Status –Income

6. Civilian Labor Force Are you a part of this group?

7. Civilian Labor Force All members of the population ages 16 and up who are... –Employed –Unemployed but actively seeking for a job And are not –In the military –In Prisons –In Mental Hospitals

8. Time For a Break How many hours do you think you would be able to work a day…max? You were accused of sexual harassment at work…what rights do you think you will have? What keeps your employer from firing you just because they think you’re ugly?

9. Labor Protection Why is it important? –Unfair Treatment –Unfair Hours –Unfair Firings –Unfair Wages –Unfair Hiring –Injuries

10. Labor Protection (cont.) Labor Unions –Unions help the workers by fighting for them with their employer. Higher Pay Better Hours Working Conditions Job Security –If the Union is not satisfied with the employer they do a couple of things to show their power

11. Labor Protection (cont.) Strike –Workers refusing to work Picket –Parade in front of workplace with signs of protest Boycott –Mass refusal to buy products for those companies Example: Grape Boycott of 1964

12. What about Employers? Employers can also fight against their employees Lockout –Refusal to let employees work until their demands were met Example: 1998-1999 NBA Season –Scabs Hiring brand new workers while regulars were on strike Example: 1996 MLB Season

13. My Labor Union

14. Think Again 1.What job/career can you see yourself working in? 2.Which does it fall under? Unskilled Semi-Skilled Skilled Professional 3.How long do you think you would be able to last at that job/career?

15. Categories of Labor 4 major categories of labor are based on the level knowledge and skill needed –Unskilled Labor –Semiskilled Labor –Skilled Labor –Professional Labor

16. Unskilled Labor Those who mainly work with their hands Lack training and specific skill Examples –Ditch Diggers –Fruit Pickers –Floor Mopper Have the least amount of training and education which makes them the lowest paid

17. Semiskilled Labor Enough ability to work machinery but requires a minimum about of training Examples –Electric Floor Polisher –Dishwasher –Lawn Cutter

18. Skilled Labor Jobs which require the ability to operate more complex equipment and do not need a lot of supervision High levels of training and ability Examples –Carpenters –Typists –Computer Techs –Chefs –Computer Programmers

19. Professional Labor Highest level of education required as well as managerial skills Examples –Doctors –Scientists –Lawyers –Corporate Executives –Educators

20. Wages Wage rates differ from job to job and sometime within the same job Why are they different??? –3 Theories Traditional Theory Negotiated Wages Theory Signaling Theory

21. Traditional Theory “The supply and demand for a worker’s skills and services determine the wage or salary” If more people need you or your job you will get paid more and… If less people do the job that you do, you become more valuable and therefore may get paid more

22. Theory of Negotiated Wages “Organized labor’s bargaining strength is a factor that helps determines wages” Those jobs that are backed by a union or some sort of organized group will be able to fight or push for higher wages Also, those at the same job use seniority as a way of making more money

23. Signaling Theory “Employers are willing to pay more for people with certificates, diplomas, degrees, and other indicators or ‘signals’ of superior ability” Employers hire and pay more $ to an applicant with a college degree rather than someone who doesn’t Degree = SIGNAL –Says that person is intelligent and qualified

24. Wage Differences Workers in one part of the country or state get paid more/less than someone in another part of that country or state Workers have the opportunity to leave their job and go to that higher paying area. Example –Teachers in Connecticut = $57,760 –Teachers in South Dakota= $34,039

25. Taxes FACT: The U.S. Government collected about 3 trillion dollars in taxes for 2010 (That’s About 10,000 dollars per person!)

26. Economic Impact of Taxes 1.Taxes on businesses = Decreased sales 2.Taxes encourage people to buy domestic products not foreign products 3.Also discourage people from working harder or getting higher paying jobs because of the amount that will be taken away from them.

27. 2 Principles of Taxation Benefit Principle –If you benefit from a government and their services, you should pay them back through taxes Ability to Pay Principle –You should be taxed the amount you realistically are able to pay –The more you make = The more they take

28. 3 Types of Taxes Proportional Tax –The percentage of your income that is taken out by taxes is the same despite how much you make. –(Ex: 10% to taxes for $10k and 10% to taxes for $100k) Progressive Tax –The percentage of taxes taken goes up as your income goes up –(Ex: 10% for $10k and 20% for $100k) Regressive Tax –The percentage taken goes down as your income goes higher –(Ex: 30% for $10k and 10% for 100k)

29. 2010 Tax Brackets

30. How does Uncle Sam Take $? Payroll Withholding System –Takes a percentage out of your monthly paycheck –Sent to IRS which collects taxes –If one has overpaid in taxes due to deductions and such they receive a tax return

31. How does Uncle Sam Take $? FICA Tax – (Federal Insurance Contributions Act) –Collected from everybody –Pays for Social Security and Medicare –Regressive tax after about $80k

32. Breakdown of Federal Taxes

33. Breakdown of California Taxes

34. Government Spending Our Government is a Huge Business It spends more money per year than all other businesses combined It is a huge part of our economy because of how much its spends per year Total is about $4-5 Trillion

35. Graph Breakdown

36. How Much Again? $586.1 billion (+7.0%) – Social Security $548.8 billion (+9.0%) - Defense $394.5 billion (+12.4%) - Medicare $294.0 billion (+2.0%) - Unemployment and welfare $276.4 billion (+2.9%) - Medicaid and other health related $243.7 billion (+13.4%) - Interest on debt $89.9 billion (+1.3%) - Education and training $76.9 billion (+8.1%) - Transportation $72.6 billion (+5.8%) - Veterans' benefits $43.5 billion (+9.2%) - Administration of justice $33.1 billion (+5.7%) - Natural resources and environment $32.5 billion (+15.4%) - Foreign affairs $27.0 billion (+3.7%) - Agriculture $26.8 billion (+28.7%) - Community and regional development $25.0 billion (+4.0%) - Science and technology $23.5 billion (+0.8%) - Energy $20.1 billion (+11.4%) - General government

37. California Budget 2008-2009

38. Spending Purchase of Goods & Services –Tanks, Planes, Ships, Space Shuttles –Office Buildings, Park Land, Capital Goods for Schools and Laboratories –Military STUFF Transfer Payments –Social Security, Welfare, Unemployment, Disability –Goes to Individual People or Local Aid (highways, schools)

39. Impact of Government Spending Allocation –When Mr. Obama spends money on stuff that can benefit you and your situation rather than like Space Travel or New Weapons Redistribution –When the government puts money into needy family programs or businesses that boost your income Competition –When government institutions (public colleges and hospitals) compete and drive down prices of privately owned institutions