Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter 20: Economic Challenges
Document related concepts
Transcript
CIVICS IN PRACTICE HOLT Chapter 20 Economic Challenges Section 1: The Business Cycle Section 2: Coping with Economic Challenges Section 3: Labor and Management ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 1: The Business Cycle The Main Idea The economy has periods of uneven growth called business cycles. Sometimes the economy grows quickly, but other times it may grow very slowly or even shrink. The worst point in the business cycle in the United States was the Great Depression. Reading Focus What are the different parts of the business cycle? What was the Great Depression? What was the government’s response to the Great Depression? ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 1: The Business Cycle Different parts of the business cycle: Expansion Peak prosperity Contraction or recession Trough or depression Expansion ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 1: The Business Cycle Old theories of the business cycle prior to the Great Depression: Business cycle should be left alone: problems cure themselves. Recessions could not last long: workers would accept lower wages, thus lowering costs of production. Expanding businesses would help other businesses expand. ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 1: The Business Cycle The Great Depression and the government’s role: New Deal—designed to provide jobs and create financial stability. Civilian Conservation Corps—young people were to restore natural resources FDIC and SEC created to insure funds and inhibit fraud ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 1: The Business Cycle The Great Depression and the government’s role: (continued) Social Security System set up to provide funds for retirees Unemployment compensation established Government intervention in the economy remains a matter of dispute. ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE SECTION 1 HOLT Question: What are the different parts of the business cycle? peak contraction The Business Cycle expansion ‹#› trough HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 2: Coping with Economic Challenges The Main Idea Problems such as inflation, unemployment, and recession pose serious challenges to the economy. The government responds to these problems by changing its monetary and fiscal policies. Reading Focus What kinds of problems can occur in the economy, and what causes them? How can the government address these economic problems? How can citizens help to improve the economy? ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 2: Coping with Economic Challenges Economic problems and their causes: Inflation—prices increase faster than wages; Unemployment—unemployed workers cannot pay bills or purchase goods Recession—production, spending, and consumer demand decline Money and loans—too much money in circulation leads to inflation ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 2: Coping with Economic Challenges Economic problems and their causes: (continued) Government and consumer spending—over- borrowing reduces savings, increases debt; helps raise prices Productivity—foreign productivity hurts American businesses; contributes to unemployment ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 2: Coping with Economic Challenges The government addresses economic problems through Changes in fiscal policy—in a recession, government may lower taxes and increase government spending. Changes in monetary policy—in a recession, the Federal Reserve may increase the money supply or lower interest rates. Actions may be reversed in boom periods. ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 2: Coping with Economic Challenges Citizens can aid the economy by Increasing savings—consumer savings give banks more money to lend to business. Reducing credit debt—reduced debt can lead to more savings. Buying American-made products, which preserves and creates jobs in America. Increasing productivity—efficient management and workers aid business and may increase wages. ‹#› HOLT, RINEHART AND WINSTON SECTION 2 CIVICS IN PRACTICE HOLT Question: How does the government address economic challenges? The Government’s Response to Economic Challenges Changes to the fiscal policy: reduce taxes buy more goods and hire more people give larger payments to unemployed, poor, and older citizens decrease wasteful spending ‹#› Changes to the monetary policy: increase money supply during a recession by reducing interest rates or by buying government bonds raise taxes and reduce spending during a boom period raise interest rates during a boom period HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 3: Labor and Management The Main Idea Workers formed labor unions to force employers to improve working conditions and wages. Businesses and unions have had conflicts over the years, so the federal government passed laws dealing with labor relations. ‹#› Reading Focus What led to the rise of factories in the 1800s? What are labor unions? What laws have been passed to ease relations between labor and management? What is the status of labor unions and labor relations today? HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 3: Labor and Management The rise of labor unions in the 1800s: Large factories used machines and employed hundreds of workers. Factory managers and owners had little contact with workers. Heavy immigration led to too many available workers. ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 3: Labor and Management The rise of labor unions in the 1800s: (continued) Workers were forced to accept long working days, low wages, and harsh conditions. Workers organized unions to improve conditions. Collective bargaining was used to reach agreements with employers. ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 3: Labor and Management Methods of negotiation and major labor laws: Workers’ methods: strikes, picketers, job actions Employers’ methods: blacklists and lockdowns Right-to-work laws—no one is forced to join a union 1935—National Labor Relations Act or Wagner Act 1947—Labor-Management Relations Act or Taft- Hartley Act 1959—Landrum-Griffin Act ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 3: Labor and Management The state of labor relations today: Union leaders know companies must make profits to ensure jobs. Companies know workers must have suitable conditions and reasonable wages. Modern unions cooperate with companies to run efficient businesses. Compromises help settle strikes when they occur. ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Section 3: Labor and Management The state of labor relations today: (continued) Mediators make nonbinding recommendations to end a strike. Arbitrators make binding decisions to end a strike. ‹#› HOLT, RINEHART AND WINSTON SECTION 3 CIVICS IN PRACTICE HOLT Question: What is the status of labor relations today? use arbitration to settle disputes use collective bargaining to settle disputes Labor Relations Today use more cooperation between employers and unions use mediation to solve disputes ‹#› HOLT, RINEHART AND WINSTON CIVICS IN PRACTICE HOLT Chapter 20 Wrap-Up 1. What was government’s response to the Great Depression? 2. How did the government’s role in the economy change during the Great Depression? 3. What measures does the Federal Reserve take to control the amount of money in the economy, and why does it do so? 4. How can the action of consumers affect the economy? 5. What first caused workers in the United States to form labor unions? 6. What methods do unions and employers use to try to achieve their goals? ‹#› HOLT, RINEHART AND WINSTON
