The Role of the Government in the U.S. Economy

1. The Role of the Government in the U.S. Economy Unit 7b

2. Unit 7c: Career Planning • “What do you want to be when you grow up?” You have undoubtedly been asked that question since you were a toddler. You probably have also begun to ask yourself that question recently. Then the U.S. was founded, most Americans worked on farms. Jobs in towns and cities were limited. Today career opportunities are available in hundreds of fields. You will want to choose a career in which you can do your best. America’s economic future depends on your contributions as a member of the workforce.”

3. People should choose their own careers! •  To find work that suits their • interests, intelligence and abilities •  To plan their own futures and goals

4. People’s choices are influenced by: • Economic conditions • Personal values • Economic goals • Career growth potential

5.  Individuals who know themselves well make wiser career choices • They know their qualifications • They acknowledge their strengths and weaknesses • They balance their choices • against their abilities and interests.

6. Education is the key! • Employers seek educated employees • Educated people better meet the challenges of new situations • Education improves your chances of earning a higher income

7. Qualifications for careers in government and the military Government: detailed history of background and education; written tests; interviews, possible extensive background checks Military: high school diploma, nomination for officer training schools, Scholastic and physical examinations

8. Finding information about careers • Read books, magazines & pamphlets • “Occupations Outlook Handbook” published by the U.S. department of Labor • Keep an open mind to new ideas

9. Ask yourself job related questions to determine: • The type of work required • The abilities and education required • The salary involved • The job opportunities in the field • How the type ofwork will affect you and where you would live

10. Career Planning Starts With Self Assessment!

11. An awareness of individual talents, interests and aspirations is needed to select a career • Attitudes and behaviors that support a strong work ethic enhance career success • Employers seek workers who demonstrate the attitudes and behaviors of a strong work ethic • There is a correlation (relationship) between skills, education and income

12. Higher skills and or higher education levels generally lead to higher incomes •  Changes in technology influence the abilities, skills and education needed in the marketplace • Employers seek individuals who have kept pace with technological change • Technological advancements create new jobs in the workplace • Supply and demand also influence job income.

13. Are You Ready For More Economics????

14. The Role of the Government in Regulating the U.S. Economy

23. Who? Who provides the goods & services? Federal Government State Governments Local Governments Public Goods and ServicesGoods and Services that can be used by everyone

24. Why? Why do we need public goods and services? They provide benefits to many simultaneously. They wouldn’t be available if individuals had to provide them. Public Goods and ServicesGoods and Services that can be used by everyone

25. How? How does the government provide goods and services? Tax Revenue The 16th Amendment authorizes an income tax. Federal Government- income taxes State governments- sales and income taxes Local governments- property taxes The governments can also borrow money. Public Goods and ServicesGoods and Services that can be used by everyone

26. What? What are public goods and services? Interstate highways Postal Service National Defense Public Goods and ServicesGoods and Services that can be used by everyone

28. The Business Cycle The performance of the American economy changes over time. This is called the

29. The Business Cycle The performance of the American economy changes over time. This is called the business cycle.

31. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices.

32. http://www.youtube.com/watch?v=-7pco3TTV5k&feature=related

33. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices.

34. Peak Point at which the expansion of the economy and the inflation that accompany it stop. The high point of theeconomy. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices.

35. Peak Point at which the expansion of the economy and the inflation that accompany it stop. The high point of theeconomy. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices.

36. Peak Point at which the expansion of the economy and the inflation that accompany it stop. The high point of theeconomy. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices. Recession A slowing of the economy Business fail, unemployment rises and profits fall.

37. Peak Point at which the expansion of the economy and the inflation that accompany it stop. The high point of theeconomy. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices. Recession A slowing of the economy Business fail, unemployment rises and profits fall. .

38. Peak Point at which the expansion of the economy and the inflation that accompany it stop. The high point of theeconomy. Expansion Period of Economic Growth The economy grows; employment grows and demand for goods and services increases. People have money and the demand for goods and services increases causing inflation, a rise in prices. Recession A slowing of the economy Business fail, unemployment rises and profits fall. Depression Lowest point of the economy; unemployment is high. Because unemployed people cannot afford to buy goods and services, many businesses fail.

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40. Causes: Shortage of goods Supply lower than demand Effects: Higher Prices and Interest Rates Money looses value Unemployment InflationA general rise inthe cost of goods and services

41. Fiscal Policy The government taxes, borrows and spends to provide public goods and services.

42. Taxes 16th The _____ Amendment granted Congress the power to tax personal and business income.

43. Tax Increases (more money paid to government) Decrease funds available for households and business. Tax Decrease (less money paid to government.) Increase funds available for household and business spending. Taxes

44. Government Borrowing

45. Increased government borrowing decreases funds available for households and business to borrow. Decreased government borrowing increases the funds available for households and businesses to borrow. Government Borrowing

46. Increased Government Spending Increases demand, which may increase employment and production May increase taxes Decreased Government Spending Decreases demand which may decrease employment and production May slow the economy May lower taxes Government Spending

47. Fiscal Policy

48. Fiscal Policy

50. Prices rising due to too much money in the economy Must take money OUT of the economy INFLATION