Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
IT’S THE ECONOMY, STUPID Unit 1 Lesson 2 Big Idea: The success or failure of an administration often hinges on the economy, despite the fact there are other controlling factors. Objectives • To compare Keynesian and Supply-Side Economic theories. • To evaluate successes and failures of the Reagan, Clinton, and Bush economic plans. • To identify additional factors influencing the success or failure of the overall economy. • To analyze causes of current economic crisis and research government interventions. Warm up: • What was this video clip about? How does it relate to our current studies? Key Economic Terms • Deficit – difference between what govt takes in (taxes) and what it spends annually • Difference must be borrowed…aka deficit spending • Debt – accumulated debt govt owes from yrs of borrowing to pay off annual deficits • Owed to people, co’s, state/local govts, foreign govts • Debt Ceiling – cap on amt of debt fed govt can borrow • Interest – rate paid on borrowed money Key Economic Terms •Surplus – take in more than spend • Subtracts from total debt •Inflation – rate of increase in the price of goods and • • services over a given period of time Dollar buys less 2-3% good •Stagflation – inflation, high unemployment, and stagnate economy •Recession – an economic downturn, slow business activity Reagan(omics) • Supply-Side Economics • Tax cuts to rich … “Trickle-down” • $ invested in business = produce more = more jobs = more income = more spending = more taxes (revenue) • Deregulation-energy, transportation, banking, cut size and# regulatory agencies • New Federalism • Social funding cut 10%...left to States • Increased Defense Spending Reagan(omics) •The Good • Inflation rate down • Stocks soar • Employment up • Streamline tax code •The Bad • Deficit up ($3 trillion) • Stock scandals • Crash ’87 • S & L Bailout • Unequal distribution $ • Farm Crisis • Manufacturing Losses Discovery Education: • Recession ‘90s http://app.discoveryeducation.com/player/view/assetGuid/542FCB5E-759E-4C11881B-33193F51B6B4 Bush and “No New Taxes” •1990s Recession & Rising Nat’l Deficit = NEW TAXES = No re-election! •The Bad • International Trade Deficit • Unemployment Up, Poverty Rates Up, Welfare Programs Cut •The Good? • NAFTA Clinton’s “Fiscal Discipline” •Tax increases (on wealthy) & spending cuts to reduce deficit •Dot.com boom = ↑ tax revenue (salary & capital gains) •Balanced Budget •Left office with $127 b budget surplus •Pay down debt…not erased •On track to pay off debt b/t 2008-2015? Closure • How does knowing all of this information impact you? • Why is it important to know?