Please take a piece of paper on your way in, and complete both sides.

1. Hi • Please take a piece of paper on your way in, and complete both sides. • When you’re done, your Need to Know List is on page 96. If I don’t see you completing the handout or your Need to Know List, you will lose participation points. • “Tax Man” • Stevie Ray Vaughan

2. Learning Goal 5 • I will be able to: • Summarize FDR’s goals when he and Congress created the New Deal programs • Explain why the FDIC was created • Summarize how the FDIC protects consumers today • Define Social Security and explain why it was created • Summarize what the New Deal did for the country and how it is still relevant today

3. 4.5 New Deal Programs today FDIC Social Security Debate • Federal Deposit Insurance Corporation (FDIC) & Social Security • Government insurance of bank accounts • If bank fails, the government will refund your lost money up to $250,000 • Financial security to the elderly so they can continue to spend money and don’t become a burden when can’t work • New taxes on workers and businesses to pay for it • First time gov’t took responsibility for people’s financial well-being • Used to be if you didn’t plan for your retirement, it was your and your family’s problem! • Is it the government’s job to provide for people? Is it ethical to take money from some to give to others? • The New Deal was FDR’s series of government programs designed to get the US out of the G. Dep. • FDIC supported by almost all today, SS huge argument b/c taxes people, but many predict will be out of money in 20 years

4. What is this? What does it do?

7. When you get a full time job….Please check one. Stocks = small pieces of ownership of a company; company pays small portion of profits to those who own stock, called a dividend. Bonds = loans to companies; when you buy a bond, you are loaning that business money that they are required to repay with interest Mutual Funds = groups of stocks purchased together, safer because if you buy only shares of 1 company’s stock, and it goes down, you lose a lot of money. If you buy a mutual fund, which can consist of many different companies, if one goes down, the others can help bail you out. They’re safer, but typically don’t earn as much money as quickly.

9. Most Americans support paying taxes to pay for services that just about ALL Americans need and from which they can benefit, like military protection, interstate highways, and airport safety. But some programs are more controversial. For each example, simply write “yes” if you would support your tax dollars funding this or no if you would not. Then briefly (sentences NOT required) explain which you support the most and perhaps which you find to be the dumbest.

10. When sharing with your partner… • 1. For each “yes” and “no” answer, briefly tell them why. You didn’t write anything down for this, but briefly tell them why you said yes or no. • 2. Read to them what you wrote down for which you support the most. • 3. Read to them what you wrote down for which you support the least. • 4. When finished sharing, turn to page 88 and read the outline.

11. How get away with stupid spending? • Bill to pay bonuses to war veterans. • $500 for each month of combat service. • Paid the 1st of the month. • With each check will be a personal thank you note. • Businesses will be encouraged to donate free meals at restaurants and coupons to help veterans adjust. • $325,000 will be spent to develop a lifelike squirrel to help study rattlesnake behavior.

13. From my paycheck • Social Security (government program that gives money to the elderly/retired) = 6% • Medicare (government pays for health insurance for the elderly) = 1.4% • 6% + 1.4% = 7.4% • 7.4% of 40 (hrs/week for full time) = 2.96 • The pay from my first three hours on Monday goes right to the government and is given to those eligible for Social Security and Medicare.