1.  Welcome and thank you for being here!  Please complete the registration form:  Please write in at the bottom how many students you impact annually  Please write at the top that your materials received are lesson copies  Presenter: Laura Ewing, President/TCEE

3. 501(c)3 Texas wide nonprofit 1801 Allen Parkway, Houston, TX 77019 tcee@economicstexas.org www.economicstexas.orgwww.economicstexas.org * www.smartertexas.orgwww.smartertexas.org P: 713.655.1650 Presenter: Laura Ewing/President

4. What Role Does Texas Council on Economic Education Play? The Texas Council on Economic Education (TCEE) Teaches Teachers Who Teach Students Who Are the Future of Texas --John Anderson, TCEE Board Member

5. Three Student Programs Directly Reach 25,000 students annually Stock Market Game™ Economics Challenge Personal Financial Literacy (PFL) Challenge

6. 10 week simulation Grades 4 through 12 Teams of 2 to 5 students Virtual $100,000 to invest 20,000 Texas students participate annually Legislative & Capitol Hill Challenges $10 team fees RESEARCH INDICATES IMPROVED MATH SCORES ON STANDARDIZED TESTS No Team Fees for Houston Thanks to a Generous Grant from FINRA

7. InvestWrite Open to students participating in the Stock Market Game™ Elementary, Middle and High School Competition Cash prizes from Texas

8.  High School Division:  Adam Smith for Advanced  David Ricardo for On level  Middle School Teams of 4 but individual test Taking Cost: $20 a team Tests online in March Top Texas high school teams move onto regional Cash prizes

9.  Middle and High School Divisions  Funding Pending  On line testing  Top HS team goes to national competition  Teams of four test individually but scores averaged  Cash prizes for top two high school teams  Middle school winners receive awards

10. How Do You Get These Materials? www.economicstexas.org www.Smartertexas.org

11.  Published by RAISE Texas  Parent and Student Guides Written by TCEE  Download Book And Guides at http://economicstexas.org/?page_id=570 3 http://economicstexas.org/?page_id=570 3

12. Visit resources: Economics texas.org Smartertexas.org

14. copyDR. EnviroChem Services, Inc. Trout Foundation John Anderson Less B. Fox RBC Wealth Management

15. ONLINE ECONOMICS AND FINANCIAL LITERACY LESSONS GEN I REVOLUTION TEACHES FINANCIAL LITERACY THROUGH PROBLEM SOLVING 15

16. John Ivie - Chair Ivie Law Firm Patricia Hardy State Board of Education, Member District 11 Weatherford ISD Robert Smith III President Texas A&M University Galveston Lisa Clawson President - Addison Happy State Bank Laura Jaramillo Senior Vice President Government & Community Relations Group Wells Fargo Pete Villarreal EVP, Chief Administrative Officer PlainsCapital Bank Anthony Daddino Meadows, Collier, LLP Marcus McCue Executive Vice President Guardian Mortgage Co., Inc Homer Erikson TCU University Andrew DeLauro Senior Vice President BB&T Dawn Moeder Assurance Services Partner Lane Gorman Trubitt, LLP John Anderson- Director Emeritus Anderson Investments Thomas Fleissner President and CEO Houston Information Team, LLC Donna Normandin Senior Vice President Frost Bank Carol J. Trout - Director Emeritus Trout Foundation Aaron Gladstone Associate Hilltop Holdings Inc. Rob Pivnick Vice President Goldman, Sachs & Co. James Cooper - ex officio James C. Cooper, Inc. Wayne Goettsche WKG Consult Edmund P. Segner III Professor/Civil & Environmental Engineering Rice University Board of Directors

17. Inflation Deflation Disinflation

18. Laura Ewing President/CEO Texas Council on Economic Education www.economicstexas.org www.smartertexas.org Laura@economicstexas.org 713-655-1650

19. 1. how Texans make a living 2. where people settle

20. 1. Land 2. Labor 3. Capital 4. Entrepreneurship

21. What do you know about the economy of the 13 colonies? Write at least three things about the economy of the 13 colonies. Share your answers with a partner. Listen as three students share their answers with the class.

22. Visual 4.2: % of Distribution of Total Colonial Trade (1768 to 1772) United Kingdom West Indies Southern Europe Africa % of Colonial Imports of G & S 80% 18% 2% 0% % of Colonial Exports of G & S 56% 26% 18% 1%

23. Role of property rights Use these concepts to explain the free enterprise system in colonial America: Property rights Incentives Productive Specialization Trade Global economy Investments profits

24. What is the difference? Good: Service: Which of the items on the list are goods and which are services? Rank order: which do you think most important to least important.

25. The Costs and Benefits of American Independence Review the lesson What are the key components of the lesson? What would you do differently?

26. What do you know about the US Articles of Confederation and U.S. Constitution? Years? Purpose? Who wrote? Why?

27. U. S. Constitution First Continental Congress met September 5, 1774 in Philadelphia in response to the Coercive Acts (Intolerable Acts) passed by Parliament which had punished Boston for the Boston Tea party Agreed to petition King George for redress of grievances 12/13 colonies attended with 56 people (only Georgia, the convict state not included) First CC agreed to meet again next year Shot heard ‘round the world in Lexington 1775

28. Second Continental Congress Began meeting in Philadelphia May 1775 Organized the war effort Commissioned writing of Declaration of Independence When in the course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of God’s Nature entitled them…should declare the causes which impel them to the separation.

29. Declaration of Independence We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness-that to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government because destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government…Right to revolt…after a long train of abuses… List of grievances John Hancock’s signature Written by Thomas Jefferson

30. Economic Problems During the Articles of Confederation Debt Taxation Tariff Battles Military Weakness

31. A New Nation in 1781: One Nation or Thirteen? Guidelines for the activity: 1. Individually read the problem and the predicting consequences. 2. Succinctly state the problem in one sentence. 3. What do you think the consequences will be? 4. Work in a small group and compare your problem sentences. As a group restate the problem statement. 5. As a group, restate what you predict the consequences will be. 6. Share your answers with the class.

32. Processing Activity on Articles of Confederation How did the Articles reflect the wishes of a people vying for less centralized power? What were issues with the Articles? What will happen as a result of the issues?

33. The U. S. Constitution: The Rules of the Game What is the role of the government in the U.S. market economy? Constitutional Convention May to September 1787 September 17, 1787 is Constitution Day

34. The U. S. Constitution: The Rules of the Game The new nation was in financial crisis. The new states sent 55 leaders to amend the Articles of Confederation. They met from May until September 1787. They quickly learned that they needed to make substantial changes. They wrote a new Constitution based on Adam Smith’s concepts of economic freedom. What were the new rules of the game?

35. The Constitution: Rules for the Economy As you participate in the activity, notice the new rules of the game, why they were established, and the expected outcomes. Read Economic Freedom and the Founders The Particular: Name and summary of statement Location In US Constitution Based on the rule, how would you decide on the question? 1. 2. 3. 4. 5. 6.

36. Rules of the Game and YOU What are three ways that the rules of the game affect you: Economically? Personally?

37. ACTIVITY 19.1. THE COUNTERFACTUAL: WHAT IF THE U.S. CIVIL WAR HAD NOT BEEN AVOIDED? 1. What is Lebergott’s belief about the impact of the Civil War on industrialization? 2. Give two reasons why you agree or disagree with his statement. 3. Without the war, would the U.S. have industrialized after 1865? 4. How would war resources have been otherwise used? 5. What may have been the opportunity cost of the Civil War?

38. PROCESS How did the Civil War stimulate the economy? How do you respond to this statement? Provide reasons for your response. We cannot confuse chronology with cause and effect. The Civil War did precede an unprecedented expansion of the U. S. economy during a period of industrialization. However, this does not mean that the Civil War caused the economy to grow. How would the economy have proceeded without the Civil War?

39. THE DEMAND FOR IMMIGRANTS EXAMINE AN ECONOMIC MYSTERY AS TO WHY SWEDISH FARMERS MIGHT HAVE COME TO THE U.S. IN 1880 STUDY VISUALS TO DETERMINE YOUR ANSWER USE SUPPLY AND DEMAND ANALYSIS TO EXPLAIN WHY THE KING TRIED TO CONVINCE THEM TO RETURN

40. WHY DID IMMIGRANTS COME TO THE U.S. LATE 1800’S? 1865 to 1920 = 28 million + to U.S. Sought higher standard of living Join family and friends Needed jobs due to surplus labor abroad Escape religious persecution Read advertisements of promises for better life Why do you think Swedish immigrants would have abandoned their lands in the late 19 th and early 20 th centuries to come to the U.S.?

41. DISCUSS VISUAL 22.I Read the advertisement distributed to farmers in Sweden in the 1880’s by representatives of Union Pacific Railroad. RR companies wanted to sell land, establish farmers in west who would sell and buy products distributed by the railroads. RR built ahead of demand. Use visual 22.1 and Activity 22.1 to read and answer the questions in context of the information given. Three rules of economic decision-making include that people:  Decide based on the most advantageous combination of costs and benefits  Respond to incentives in predictable ways  Must deal with the rule of the economic system and their influence on choices and incentives

42. VISUAL TWO REVIEW THE STATISTICS ESTIMATE HOW MANY IMMIGRANTS ARRIVED IN THE U.S. BETWEEN 1871-1920. WHAT HAPPENED IN THE 1870’S AND 1880’S AND 1916-1920 THAT HAD AN IMPACT ON IMMIGRATION?

43. REMINDERS THE MARKETS ALLOCATE SCARCE RESOURCES. WHAT ARE THE SCARCE RESOURCES HERE? WHAT ROLE DO IMMIGRANTS PLAY? WHAT ROLE DO EMPLOYERS PLAY?

44. VISUAL 22.2: MIGRATION TO THE UNITED STATES WHAT MIGHT HAVE BEEN PUSH FACTORS? WHAT MIGHT HAVE BEEN PULL FACTORS? WHAT WERE THE EXPECTED BENEFITS AND COSTS FOR THE SWEDISH FARMERS? IF YOU HAD LIVED THEN, WOULD YOU HAVE MIGRATED TO THE U.S? EXPLAIN.

45. WHAT CAUSED A RETURN TO SWEDEN? WHY WOULD SUCCESSFUL SWEDISH FARMERS DECIDE TO RETURN TO SWEDEN? VIEW VISUAL 3 P5 P4 P3 P2 P1 Q1 Q2 Q3 Q4 Q5 DEMAND SUPPLY 1 SUPPLY 2

46. CLOSURE IN WHAT WAYS CAN IMMIGRATION BE VIEWED AS ACTION TAKING PLACE WITHIN AN INTERNATIONAL MARKET OF BUYERS AND SELLERS? WHY DID IMMIGRANTS COME TO THE UNITED STATES?

47. WHY DO PEOPLE MOVE?

48. VISUAL 4.1 GEOGRAPHIC MOBILITY What is significant about each figure and why do you think these changes happened? Figure 1? Figure 2? Figure 3?

49. TERMS Migration Immigrants Emigrants Benefits Costs Push and Pull

50. COSTS AND BENEFITS? BABYSIT FOR $6.00 FOR UNRULY KIDS OR BE WITH FRIENDS? CostsBenefits

51. PUSH AND PULL FACTORS PUSHPULL Costs of present location that drive people away Benefits of new location because it has advantages

52. REASONS FOR MIGRATION 1.You will be assigned one card from Activity 4.1. 2.You will answer questions on Activity 4.2. 3. Complete the chart based on reading. Push Factors for MigrationPull Factors for Migration

53. AND THE POINT IS?

54. MIGRATION: LESSON 8 FOCUS: GLOBALIZATION

55. TEXAS COUNCIL ON ECONOMIC EDUCATION  1801 Allen Parkway  Houston, TX 77019  713.655.1650  www.economicstexas.org

56. VOCABULARY AND CONCEPTS Human capital Skilled workers Unskilled workers Emigration Immigration Brain drain

57. FOCUS: LET’S BEGIN Why do people migrate? What are the concerns about immigration? What are the concerns about emigration?

58. CONTENT STANDARDS 1. How and why do people react to incentives? 2. What role do incentives play? 3. What determines the income people earn?

59. OBJECTIVES 1. Explore economic incentives that lead to migration, both economic and non-economic 2. Describe the difference between skilled and unskilled workers and the effects of immigration on both 3. What are the economic effects of immigration 4. Define/discuss cause and effect of brain drain 5. Illustrate impact of immigration on wages using supply and demand diagram

60. STUDENT FOCUS 1. Do you know anyone who was born in a different country? 2. Was anyone in your family born in a different country?

61. UNITED STATES: NATION OF IMMIGRANTS Melting pot Salad bowl US 31 million born elsewhere 11 % of US population Define: Emigration & Immigration Why do people come to the US?

62. VISUAL 1: U.S. IMMIGRANTS BY CLASS OF ADMISSION, 2004 What are three facts that you can learn from the chart? Summarize the point of the chart Continue looking at the other charts

63. WHY IS IMMIGRATION TO US DIFFICULT? Why do people need to be related to a citizen or resident? Why else is it difficult to immigrate?

64. WHO SHOULD BE ALLOWED TO IMMIGRATE TO THE UNITED STATES? Doctor Teacher Construction worker Agricultural worker Computer programmer

65. WORKERS What is the difference between skilled and unskilled workers? “Most countries have adopted immigration policies that are at least partly based on workers’ occupation or skill level.”

66. VISUAL 2: VISAS What is a visa? What are three facts you can learn from the chart? How would you summarize the point of the chart?

67. WHAT ARE THE DIFFERENCES BETWEEN - Permanent residence status Temporary Worker Visas

68. ECONOMIC REASONS FOR IMMIGRATION INTO THE UNITED STATES ARE –

69. WHAT IS HUMAN CAPITAL? What impact do immigration and emigration have on human capital in a market? Why is human capital important in a global economy? What role do wages play with immigration?

70. ROLE PLAY: 20 MINUTES You will be assigned a particular role from Activity One. (pages 190 to 195) Follow the instructions on page 188:  Play the role but you can improvise  Interview 5 people to find out how each has been affected by migration. Would they agree or disagree with laws to limit immigration?  As you interview, complete the chart on page 189  Summarize the most important statements  Decide whether or not each would favor laws to make migration easier.

71. DISCUSSION Based on what you have learned, discuss who gains and who loses from immigration? Use these terms as you discuss your answers – Host country home, source, native country Remittances (cards 9 and 14) – transfer Returnees - reverse immigration

72. WHO IS HELPED? WHO IS HURT? Why is immigration restricted in the US? Discuss Visual 3 Why does the United States allow immigration with the “negative” impact displayed on Visual 3?

73. UNSKILLED WORKERS What are the advantages and disadvantages of allowing more unskilled immigrants into the United States? What are the advantages and disadvantages of skilled workers?

74. COMPARE AND CONTRAST 1. Do you believe that the benefits of immigration by skilled workers are greater than the benefits of immigration by unskilled workers? How do you contrast the benefits of the immigration of skilled workers with the costs of emigration by skilled workers? How do you use the term brain drain in your examples?

75. BRAIN DRAIN Read Visual 4 and describe the main points Study Visual 5 and summarize the information What do you notice about the information in Visual 6? What is the message in Visual 7?

76. COMPARE AND CONTRAST The supply and demand of labor in the host country before and after immigration with The supply and demand of labor in source country before and after emigration

77. ? WHY DOES THE UNITED STATES Attract so many workers, both skilled and unskilled? Offer higher wages than many other countries?

78. DEBATE Using topics A, B, and C on page 177, debate the pros and cons of each issue one at a time.

79. AND THE POINT IS?

80. 1. demand supply goods and services profit 2. priceboomtown entrepreneur production

81. 25 new families moved into your neighborhood and every neighborhood in your area? there were so many more people…what would you need?

82. 25 new families moved into your neighborhood and every neighborhood in your area? there were so many more people…what would you need?

83. What do you see in these photos from 1901? What do you think these photos represent? Where is Beaumont, Longview?

84. Beaumont population grew from 9,000 people to 50,000 in three months. Breckinridge population went from 600 in 1918 to 30,000 in 1919 February 1931 Longview grew from 5,000 to 10,000 in 2 months How would their lives have changed????

85. 1. You are going to be in six different groups. 2. Your group will read one primary source together. 3. What goods and services are limited in supply? 4. What factors caused an increased demand for G & S? 5. What new occupations developed? Why? 6. Are your lists of important goods and services the same as those 100 years ago? Explain. 7. What examples of entrepreneurship are there? What are examples of profit motive?

86. Share your answers with your expert group. Switch groups and share what you learned about the new story

87. 1. Pretend that you live in a community that will soon have a huge boom in population. 2. It is a fictional town in the panhandle of Texas in Floyd County. There are 125 people now. You are close to highway 70. 3. Oil has been discovered and 1000 population is expected within 2 months

88. 1. Floyd County: 125 to 1000 population in 2 months 2. One gas station which sells groceries (mainly milk and bread) 3. Work in small groups to: 1. A. List problems 2. B. What goods and services will they need? 3. C. Make a list of actions needed to help people deal with population boom.

89. . Please read your section of the article: http://stateimpact.npr.org/texas/tag/fracking/?gclid=CO7 FraGdp7ACFWLktgodhx46Yw http://stateimpact.npr.org/texas/tag/fracking/?gclid=CO7 FraGdp7ACFWLktgodhx46Yw Answer the following questions. 1. What is fracking? 2. Where is the fracking taking place? 3. What are three important points about what is happening 4. Using the map, what do you notice about locations?

91. Read your segment of the Eagle Ford Fracking Article and provide pro and con arguments concerning fracking. http://www.bloomberg.com/news/2011-12-20/eagle-ford- drilling-rush-may-boost-texas-tax-revenue-15-fold.html You will meet with several other students. Each person will explain pros and cons of fracking. Make a list of the pros and cons discussed. Next, choose one pro and one con. Make a list of what you think the next steps should be for these?

93.  http://www.texastribune.org/2012/07/13/midla nd-oil-boom-strains-housing-schools/ http://www.texastribune.org/2012/07/13/midla nd-oil-boom-strains-housing-schools/  $1,500 for a 400 square foot cabin in Midland  oil prices are hovering above $80 a barrel, more than double their level of early 2009, more than double their level of early 2009  Permian Basin accounts for 14 percent of the nation’s oil production. 14 percent of the nation’s oil production  population has swelled by about 8 percent in the last two years, to about 120,000. There is talk of eventually hitting the 150,000 mark. Unemployment in Midland in May stood at just 3.8 percent — the lowest for a metro area in the state — followed by nearby Odessa at 4.3 percent.talk of eventually hitting the 150,000 marklowest for a metro area in the state

94.  oilfields offer generous pay, starting around $15 an hour  Besides subdivisions, cabins and RV parks, which are sometimes dubbed “man camps,” hotels are rapidly going up.  Modessa — it’s going to happen eventually  traffic fatality rate for the Permian Basin area in 2010 was 2.5 times higher than in the rest of the state  housing shortages, busy roads and bursting schools.

95.  http://www.statesman.com/weblogs/salsa- verde/2014/aug/13/texas-fracking-has-included- diesel-fuel-according-/ http://www.statesman.com/weblogs/salsa- verde/2014/aug/13/texas-fracking-has-included- diesel-fuel-according-/  http://stateimpact.npr.org/texas/tag/fracking/ http://stateimpact.npr.org/texas/tag/fracking/  http://earthjustice.org/features/texas-and-fracking http://earthjustice.org/features/texas-and-fracking  http://www.sourcewatch.org/index.php/Texas_and_ fracking http://www.sourcewatch.org/index.php/Texas_and_ fracking  http://stories.weather.com/fracking

96. Beaumont early 1900 Small towns 2000s What was the discovery? Compare the roles that technology played in the discovery. Compare the roles that geography played in the discovery. What impact did these discoveries have on urbanization? What were similar lifestyle and social changes and how the people handled them? What were differences in lifestyles and social changes and how people handled them?

97.  What is the point?  What are the similarities and differences between Spindletop and today?

98. VE 4 LESSONS ON EARLY RECESSIONS Teaching Financial Crises: Lesson 1: A Comparison of the Panic of 1907 to the Crisis that Began in 2007 Lesson 2: How Economic Performance from 2007 to 2009 Compares to Other Periods in U. S. History Lesson 3: Manias, Bubbles, and Panics in World History Lesson 4: The Japan Comparison Understanding Economics in U.S. History Lesson 28: Money Panics and the Establishment of the Federal Reserve System Lesson 30: Whatdunnit? The Great Depression Mystery Lesson 31: Did the New Deal Help or Harm the Economy?

99. WHATDUNNIT? THE GREAT DEPRESSION MYSTERY LESSON The lesson will focus on the causes of the Great Depression. What do you know about the causes of the Great Depression? It began with a recession caused by a fall in spending. You will receive Occupation Cards from Activity 30.2. Do not reveal your occupations to others. Prosperity in the 1920’s was based on the sales of houses and automobiles because they could buy on the installment plan for the first time. When people bought homes and cars, what happened to the economy and jobs? What action did the government take as more cars and homes were sold? As more people worked, they spent more money, which caused a multiplier effect. What do you think that means? When the economy entered into a recession and people began to buy less, what happened with the multiplier effect?

100. OCCUPATION CARDS Machinery-producing industry workers stand up and then… Car sales people stand up and then… Auto factory workers stand up and then… Housing construction workers stand up and then… Furniture store workers and suppliers stand up and then… Clothing sales persons stand up and then… Restaurant workers stand up and then… Grocer y store workers stand up and then… Now, what happens if people have to replace their cars…

101. 1929 RECESSION Visual 30.1: Explain the significance of the business cycle. What does it portray? Typical of a business cycle: what goes up must come down. But people thought the prosperity of the 1920’s would remain high. Why did the recession of 1929 become the Great Depression? As the Stock Market began to see increased prices in 1030, the cost of other goods began to fall and reduced money in people’s pockets. 1930 to 1933 Record closing of banks. See Visual 30.2. People lost their money. Regional Federal Reserve Banks would only loan to safe banks, so many failed. Gold standard tied hands of governments..

102. QUESTIONS AND ANSWERS 1. Compare the information in Visual 30.2 and 30.3 2.Answer 30.3 Questions 3.Process: What are three things that consumers and the government could have done to lessen the impact of the Great Depression?

103. LESSON 31: THE NEW DEAL Teacher Background: 1.Roosevelt initiated his Bank Holiday the day after his inauguration, and it immediately began to restore confidence in the banking system. 2.Roosevelt pushed through the Federal Emergency Relief Act which gave states $500 million for projects that would provide people with jobs. Unemployment began to decline. 3. Federal work projects also helped the unemployment rate. 4. The government set prices in an effort to encourage production, but the higher prices meant people could not afford the products. 5. Social Security provided income to blind, old and others unable to work. 6. Agencies loaned people money so they could keep their farms and homes.

104. TODAY YOU WILL DETERMINE IF THE NEW DEAL HELPED OR HARMED THE GREAT DEPRESSION RECOVERY In 1933 Franklin D. Roosevelt was sworn in as president at the lowest point of the economy. Unemployment 28% Most banks had been closed to halt an “epidemic of bank failures.” Citizens were demanding the government take action. FDR promised “a New Deal for the American people” and followed through with legislation and work programs. Did the New Deal end the Great Depression? Unemployment began to decline in 1933, but the depression lingered on until after Pearl Harbor and the U. S. involvement in World War II.

105. HOW TO INCREASE DEMAND FOR GOODS AND SERVICES? Raise prices so that businesses could afford to do business. Higher prices mean higher wages for the workers in those fields. What happens to the consumer’s ability to pay for the higher prices?

106. ACTIVITY 31.1 PART I: SOME NEW DEAL POLICIES The goal of the New Deal policies was to encourage people to spend money. The more they spent, the more they were demanding products. The more products demanded, the more workers would be needed. The more workers meant more demand… So, please place an I if you think the policy will increase aggregate aggregate (total) demand. Place a D if you think it will decrease aggregate demand. Please answer the questions on page 374. Share answers with another person.

107. WHAT ROLE DID WORLD WAR II PLAY IN ENDING THE GREAT DEPRESSION? Was it the war itself of spending on the war? Would spending on the people have done the same thing?

108. GOALS OF THE NEW DEAL List examples from Visual 31.3 Relief: Providing immediate aid to people who had lost income Recovery: Restoring GNP to the full employment level Reform: Providing greater security or benefits for groups of people

109. ACTIVITY 31.2 THE US ECONOMY: 1928 TO 1940 Review the chart. What is the relationship among the Real GNP, unemployment rate, and federal spending? Did the New Deal achieve its goals? Why or why not?

110. PLACES AND PRODUCTION SOURCE: GEOGRAPHY FOCUS ON ECONOMICS

111. WHAT DO THESE MEAN? GDP GNP

112. DEFINITIONS GDP: THE TOTAL MARKET VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED IN AN ECONOMY IN A GIVEN YEAR. GNP: THE TOTAL MARKET VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED BY AN ECONOMY IN A GIVEN YEAR

113. WHY FINAL VALUE? VALUE OF SUGAR, FLOUR, EGGS VALUE OF FINISHED PRODUCT: COOKIES WHY?

114. WHICH COUNTRY IS RICHER? COUNTRY A GDP $100,000,000 COUNTRY B GDP $200,000,000

115. WHICH COUNTRY IS RICHER? GDP COUNTRY A $100,000,000 COUNTRY B $200,000,000 POPULATION COUNTRY A = 1,000,000 PEOPLE COUNTRY B = 3,000,000 PEOPLE

116. PER CAPITA GDP THE TOTAL MARKET VALUE PER PERSON OF ALL FINAL GOODS AND SERVICES PRODUCED IN AN ECONOMY IN A GIVEN YEAR. What is U.S? What is Texas GSP?

117. WHAT IS U.S. GDP VS. TX GSP? U.S. 2007 2008 2009 2010 $46,459 $47,015 $45,793 $ Source: http://data.worldbank.org/indicator/NY.GDP.PCAP.CDhttp://data.worldbank.org/indicator/NY.GDP.PCAP.CD 2010 U.S. $47,482 #1 DC $174,500 # 2 Delaware $ 69,667 #24 Texas $ 45,940 #50 Idaho $ 34,250 http://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP

118. ACTIVITY 1: GDP PLEASE READ THE ARTICLE WHAT IS THE DEFINITION OF GDP HERE? WHAT ROLE DOES MEASURE OF VALUE PLAY? WHAT IS DOUBLE COUNTING? WHAT ARE FLOW OF PRODUCT APPROACH AND EARNINGS AND COST APPROACH?

119. GDP GDP = C + I + G + (X-M) C = CONSUMERS I = INVESTMENTS G = GOVERNMENT EXPORTS = EXPORTS – IMPORTS U. S. POPULATION IN 1993 = $24,683 WHAT DOES GDP NOT TELL US?

120. WHAT IS A CHOROPLETH MAP? ACTIVITY 2 WHAT ARE THE CHARACTERISTICS?

121. SOUTH AMERICAN MAP THE GDP PER CAPITA OF CANADA IS BETWEEN $_____ AND $_____. FOUR COUNTRIES WITH GDP PER CAPITA BETWEEN $15,000 AND $19,999 ARE: THE NATIONS OF SOUTH AMERICA HAVE GDP PER CAPITA BETWEEN $___ AND $___.

122. HOW WOULD YOU SET UP A CHOROPLETH MAP OF SOUTH AMERICA? PAGES 58 AND 59 ENRICHMENT: CHOOSE A COUNTRY WITH A LOW GDP AND ONE WITH A HIGH GDP. SET UP A CHOROPLETH MAP TO SHOW THE DIFFERENCE. ALSO, VISUALLY DEPICT THE CAUSES OF THESE DIFFERENCES.

123. VISUAL 4.1 GEOGRAPHIC MOBILITY What is significant about each figure and why do you think these changes happened? Figure 1? Figure 2? Figure 3?

124. Describe how the free enterprise system works

126. President/CEO Texas Counci l on Economic Education (TCEE) www.economicstexas.org Laura@economicstexas.org 713-655-1650

127. Market Price: Changes in Supply and Demand

128. How do changes in demand affect market price? How does the market price guide what producers or suppliers produce?

129. Why must costs be subtracted from revenues to determine profits? How can certain events cause costs to change, which can affect profits?

130. 1. What is meant by demand? 2. What are three things you demand economically? 3. How much will you pay for them? 4. What determines if you demand/buy them?

131. 1. We will divide into factories with 4 to 6 workers in each factory. 2. Choose a production manager. 3. Choose an accountant

132. 1. There will be 3 rounds of 5 minutes each. 2. You will produce any amount, but at least one of the apple, hammer, shirt and cup/saucer in 2 inch dimensions. 3. Each product must have 2 colors.

133. 1. Each product must have 2 colors. 2. You may only use your hands – no capital. 3. You may specialize. 4. Produce at least one of each but as many as possible.

135. 1. Each product must have 2 colors. 2. You may only use your hands – no capital. 3. You may specialize. 4. Produce at least one of each but as many as possible.

136. 1. Count the quantity produced of each product. 2. Record the quantities on the “Revenues Worksheet” 3. We will do a class total. 4. We will draw a demand card. 5. We will determine prices and factory earnings.

137. Supply, Demand and Market Price Chart Goods Supplied by Class Resulting Market Price With NO Change in Demand Resulting Market Price with Decrease in Demand Resulting Market Price with Increase in Demand 0-8$10$8$13 9-12$7$5$10 13-16$5$3$7 17-20$3.50$2$4 Over 20$2$1$3

138. 1. Tally your round one results 2. Plan your production strategy for round 2. 3. The production manager has the final authority on what to produce.

140. 1. Each product must have 2 colors. 2. You may only use your hands – no capital. 3. You may specialize. 4. Produce at least one of each but as many as possible.

141. 1. Count the quantity produced of each product. 2. Record the quantities on the “Revenues Worksheet. 3. We will do a class total. 4. We will draw a demand card. 5. We will determine prices and factory earnings.

142. Supply, Demand and Market Price Chart Goods Supplied by Class Resulting Market Price With NO Change in Demand Resulting Market Price with Decrease in Demand Resulting Market Price with Increase in Demand 0-8$10$8$13 9-12$7$5$10 13-16$5$3$7 17-20$3.50$2$4 Over 20$2$1$3

143. 1. What patterns do you see in the Supply, Demand, and Market Price Chart? 2. In a market, what two things are needed for a price to be determined? 3. What caused price to change?

144. 4.How did price influence your production decisions? 5. How did other groups influence your strategy and plans?

145. President/CEO Texas Counci l on Economic Education (TCEE) www.economicstexas.org Laura@economicstexas.org 713-655-1650

146. 1. What trends do you see ? 2. What are three things you have learned about how the market or free enterprise system operates? 3. What concepts and TEKS would this activity teach?

147. President/CEO Texas Counci l on Economic Education (TCEE) www.economicstexas.org Laura@economicstexas.org 713-655-1650

148. Did the incumbent win? Did the “in office” party win?

149. Unemployment Rate: The percentage of people in the labor force who are unemployed Inflation Rate: The percentage increase in the overall price level Real GDP: The value of all final goods and services produced in a country in a year, expressed in terms of constant dollars. T WO S TATISTICS B ASED ON T HESE I NDICATORS Misery Index: The sum of the unemployment rate and the inflation rate. Growth rate in real GDP per capita: The percentage change in the real GDP per person. LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS VISUAL 8.1 SOME KEY ECONOMIC INDICATORS E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY

150. A Real GDP per capita growth rule: The incumbent party usually wins if… The growth rate of real GDP per capita is greater than 0% during the year of the election VISUAL 8.2 AN ECONOMIC RULE THAT DOES NOT WORK WELL E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS

151. A Real GDP per capita growth rule: The incumbent party usually wins if… The growth rate of Real GDP per capita is greater than or equal to 2.5% during the year of the election. A Misery Index rule: The incumbent party usually wins if… The Misery Index has not increased from the year prior to the election. VISUAL 8.3 SOME ECONOMIC RULES THAT WORK WELL E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS

152. VISUAL 8.3 SOME ECONOMIC RULES THAT WORK WELL E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS Students: Write winners of elections. Apply rules.

153. VISUAL 8.3 SOME ECONOMIC RULES THAT WORK WELL E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS

154. Predict who you think will win based on the data on Activity 8.2. Write two or more rules that demonstrated how to apply the data Share your rules and evaluate them.

155. Review the “rules” on 8.2 and 8.3. Which of these rules serve as a strong predictor? Which ones do not?

156. A Real GDP per capita growth rule: The incumbent party usually wins if… The growth rate of Real GDP per capita is greater than or equal to 2.5% during the year of the election. VISUAL 8.3 SOME ECONOMIC RULES THAT WORK WELL E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS The Real GDP per capita growth rule predicted 10 of last 13 elections…

157. A Misery Index rule: The incumbent party usually wins if… The Misery Index has not increased from the year prior to the election. VISUAL 8.3 SOME ECONOMIC RULES THAT WORK WELL E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS The Misery Index rule has predicted 11 out of the last 13 elections…

158. VISUAL FOR STEP 16 – Predicting the Next Election E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS YearGrowth in Real GDP per Capita Unempl oyment Rate Infla -tion Rate Misery Index Growth Rule Misery Index Rule Candi dates Incum- bent Party Wins or Loses? 2009-4.39.3-0.48.9 20102.29.61.611.2 20110.98.93.212.1 2012??? Obama vs. Romney

159. VISUAL FOR STEP 16 – Predicting the Next Election E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS YearGrowth in Real GDP per Capita Unem ploy ment Rate Inflation Rate Misery Index Growth Rule Misery Index Rule Candida tes Incum bent Party Wins or Loses? 2009-4.39.3-0.48.9 20102.29.61.611.2 20110.98.93.212.1 2012 Current Data ??? 0.6 ??? Romney Win Obama vs. Romne y ???

160. VISUAL FOR STEP 16 – Predicting the Next Election E LECTION L ESSONS © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY LESSON 8 – ECONOMIC MISERY AND PRESIDENTIAL ELECTIONS YearGrowth in Real GDP per Capita Unem Ploy ment Rate Inflation Rate Misery Index Growth Rule Misery Index Rule Candi dates Incum bent Party Wins or Loses? 2009-4.39.3-0.48.9 20102.29.61.611.2 20110.98.93.212.1 2012 Current Data ??? 0.6 ??? 8.1 ??? 1.7 ??? 9.8Romne y Win Obama Win Obama vs. Romne y ???

161. Spring 2008

162. Spring 2012

163. Do economics play a role in presidential elections?

164. Do you believe the data we have studied shows that economic conditions impact presidential elections? Is it fair to blame or give credit to the incumbent ?

165. What Should We Do About Sweatshops? Lesson Two

166. Features Of Sweatshops  Low Wages  Long Working Hours  Health And/Or Safety Hazards  Arbitrary Discipline  No Job Security  Physical Abuse, Threats, And Intimidation  Workers Have No Voice  Child Labor

167. Contributing Factors  Dense Populations  Limited Education  High Unemployment  Few Job Alternatives  Extreme Poverty  Workers With Low Productivity  No Social Safety Net  Corrupt, Weak Or Undemocratic Government  Secrecy And Lack Of Workspace Transparency, Often In Places Without A Free Press  No System Of Justice To Protect Basic Rights

168. Sweatshops: Then and Now  PBS American Experience: The Triangle FireThe Triangle Fire 7 min. excerpt beginning at 5:40  John Stossel : 20/20 SweatshopsSweatshops

169. Characteristics Of A Competitive Labor Market  Many Buyers Of Labor  Many Sellers Of Labor  Free Entry Or Exit  Voluntary Exchange  Good Information For Both Buyers And Sellers

170. Characteristics of Less Competitive Labor Markets  One Buyer Of Labor Or Collusion of Several Buyers Acting As One  Many Sellers of Labor  Entry Of Competing Firms Blocked  High Costs For Workers To Search For Jobs  Coercive Exchange Because Other Job Options For Workers Are Artificially Blocked  Asymmetric Information or Bargaining Power

171. Approaches To Ethical Issues Outcomes Matter (Outcomes Based Ethics) Examine The Outcomes In People’s Lives Duty Matters (Duty Based Ethics) Ask Whether The Basic Dignity Of All Human Beings Is Upheld Character Matters (Virtue Based Ethics) Decide Whether Sweatshops Contribute To The Formation Of Good Character And Virtues For Workers, Managers, And Consumers

172. Frederic Bastiat “There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.” Frederic Bastiat 1801-1850