Socials Studies Grade 7 Chapter 3 Economic Security.
What is Economic Security? • Economic Security is “How wealth is distributed in society and how the wealth affects the needs and wants of the people”.
What are Needs and Wants? • In our economic society, most needs and wants can be met by money (i.e. new clothes, house, car, etc.) • However, there are needs and wants in our society that money cannot buy (i.e. people need to feel safe, cared for, loved and have a sense of belonging).
The Wants and Needs Chart. In Class Activity 10 -12 minutes. 1 Students are to get into groups. 2 Students need to put the title of the activity on top of their exercise sheet. 3 All students in each group are to create a “T” chart in their note books. 4 Students place Needs on the Left side and Wants on the Right. 5 Students are to help brain storm ideas with their group of the Needs and Wants that they need or want in their lives. 6 Students decide where to best place their ideas on the “T” Chart. 7 SHARE with the class the groups findings and compare.
Workers and Employees • In a capitalistic economy, most of the goods that people need and want are produced by private companies. • The main goal of companies is to make a profit for the people who own the company. • In a capitalist economy, most people use money to buy goods and services they need.
Students are to write in their exercise books the information below. How Money Moves through the Canadian Economy . The more people that buy things they want or need, the more goods and services are needed. As a result, this creates more jobs for people. Therefore they have more money to spend and put it back into our economy.
What is Socialism? Socialism is about social organization supporting the means of production, distribution, and exchange of goods. Socialism is regulated by the community as a whole.
What is Capitalism? • Capitalism is an important part of the economic system that we have in Canada today. • Capital is the money that goes into starting a business and maintaining it. It’s about individual freedom.
Students are to use their exercise books to create their own circle flow chart that is shown on page 44 . This diagram displays how money moves through the Canadian Economy.
An Example of Capitalism is Tim Horton’s. Here are the 4 points of how Capitalism works. 1. A person purchases a Tim Horton’s store from the Tim Horton’s Franchise. (FYI. Tim Horton’s Franchise Cost = $480,000 to $510,000 plus taxes.) 2. The owner will hire individuals to produce the goods and services (i.e. donuts, coffee, sandwiches).
3. The greater the business and the greater amount of money made by the owner will result in the needs and wants he/she can afford (big or small car; big or small house) 4. Competition with places like Dunkin Donuts, and Irving is important to help create wealth. Owners may have to upgrade products to keep up with the times to continue making money.
What is Profit? Profit is the money that business owners make after paying their expenses. (investment, salaries, supplies, etc.)
Read Pages 48 in text Millbrook First Nation: A Co-Operative Project. Students are answer the following questions. 1. Why were some laws changed to make this business center possible? 2. What some of the business that were developed on this land? List them. 3. What were the two main benefits to the community?
The Business Venture. Why do you think it is called a “Business Venture” ? Students are to write note in their exercises books. Ready…..
The term “Venture” is used in Business Venture because it is gives you an idea that there is a big risk of the business either failing or succeeding. • Can you think of a business or (local business) that have started up but do not exist anymore? • Why do you think or reasons why the business closed down?
The Entrepreneur • An Entrepreneur is a person who gets an idea to start up a business. They end up creating jobs for other people in the community. • Do you know any of these names?
Do you know these business Entrepreneurs? Bill Gates = the founder of starting Microsoft computer company. Simon Cowell = founder of the t.v. shows The X –Factor and American Idol. Vic Firth = founder of the Vic Firth drumstick company who started his business in his basement selling drum sticks to this students and today is the leader in manufacturing drumsticks. Henry Ford = The Ford Motor company 1903 producing Model T car. Ford today is still considered to be one of the biggest car companies in the world. Steve Jobs = co-founder of the Apple computer company. Walt Disney = began creating cartoons at the age of 7 who when on to create movies, cartoons and created the EPCOT center (Experimental Prototype Community of Tomorrow and the famous Disneyland Theme Parks.
Read Page 47 in text Chris Griffiths: Alex Lifeson from the Canadian band Rush playing A Garrison Guitar.
Garrison Guitars Update Chris Griffiths designed a injection mold process to efficiently manufacture an active bracing system that uses one piece of glass fiber instead of more than 30 individually cut wood pieces to support the inner structure of his guitars. In 2007, the famous Gibson Guitar company purchased his guitars and converted it into producing the Gibson acoustic Songmaker series.
Cause and Effect.Page 49 of text. A Cause – and – Effect Chain. A Cause is what happened or caused something to fail. The first cause is known as a Trigger. While an Effect is the changes that happens as a result.
After analyzing the Cause and Effect Chain on page 49 of your text, students are to create a cause and effect chain on Garrison Guitar Company.
Understand Poverty Pages 50-53 in Text. Key Terms to know (Students write the terms below in their note books) Income is the amount of money that you receive for the amount of time and work put into a job. Expenses is the amount of money that you pay for items or services you need to live. Example cell phone, t.v. cable, internet, car, gas for car, food etc. Povertyis condition of having very little or no money to buy goods or lack of the means of providing material needs or comforts.
Poverty Cycle is when the same events keeps happening over again with the same results. Example - Bad health > Can’t work > Poverty > still not healthy > still can’t work > poverty. The Cycle continues. • Quality of Life includes all other things we need and want that money just can’t buy. Love, Feeling safe, having warmth, comfort in life and being happy with what you have. • Standard of Living is a measure of how much “buying power” a person or family has. Going to the movies, eating out, vacations, home expenses etc.
What is Poverty? • Poverty is when your income (what you make) is less than your expenses (what to need to spend money on). This is not a way to live. • In some parts of the world an entire community may be experiencing Poverty. • However, there’s more to life that just economic security. It’s how you live it this is called the Quality of Life. This includes all other things we need and want that money just can’t buy.
What is a Poverty Cycle? Page 52 in text Here is how the Poverty Cycle works. When people get into poverty, they may have difficultly getting out and some never get out. When in poverty for a long time a cycle develops called the Poverty Cycle.
These are Slums (homes) built on a garbage swamp in Jakarta Indonesia. Do you think these families have any “buying power”?
Read page 53 in their text “Voices”. In your note books Students are to write their own definition of Poverty.
What is Personal Capital? Personal Capital is….
An example of Personal Capital is Owning your own home. • Owning a home is the biggest capital you will probably have. • Family usually pays a down payment or portion on a house, while the rest of the money will be a loan from the bank. This is called a Mortgage. Mortgages take many years to pay off (15-30 yrs). A Mortgage is a loan from the bank for a family to eventually own property and a house. • Until the mortgage is paid the bank always owns a portion of the house. Eventually and as the years go by the bank owns less and less.