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ECONOMICS II

ECONOMICS II. 2/2/2012. Learning Objectives. Critically analyze social problems by identifying value perspectives and applying concepts of sociology, political science, and economics;

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ECONOMICS II

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  1. ECONOMICS II 2/2/2012

  2. Learning Objectives • Critically analyze social problems by identifying value perspectives and applying concepts of sociology, political science, and economics; • Use knowledge and analyses of social problems to evaluate public policy, and to suggest policy alternatives, with special reference to questions of social justice, the common good, and public and individual responsibility.

  3. Opportunities to discuss course content • Today- 11:00-2:00 • Monday 10-1

  4. Readings • Required • Economic Policy (Chapter 7) Dye • American Dilemmas Handbook, pp 73-88 • Optional • Wealth and Poverty: U.S. and Global Economic Inequalities (Chapter 2) Kendall

  5. Paper Proposal • Due in class on 2/7 • 5% of your final Grade • Involves submitting 2 Parts • Worksheet • 2 page paper

  6. Goals of a Sound Economic Policy • GDP Growth • Low Unemployment • Low Inflation

  7. Goal 4: A positive Balance of Trade • A Nation Wants to Export more than it Imports • The United States is the reverse

  8. The Big Mac Index • A way of measuring the strength of the dollar • Big Mac’s involve a fixed product • What it involves • http://www.youtube.com/watch?v=sz656YOEixI

  9. Big Mac Index

  10. Our Trade Deficit

  11. Why We have a Trade deficit • Where it comes from • What are the reasons

  12. The Advantages and Disadvantages of a Trade Deficit • Disadvantages • Advantages

  13. Goal 5: Sound Tax Policy • A sound tax policy should collect as much at it spends • A sound policy does not disrupt the functioning of the economy

  14. Where to set the Tax Rate • http://www.youtube.com/watch?v=dxPVyieptwA

  15. Types of Taxes • Regressive • Progressive • Sin Taxes

  16. Our Tax Burden Is Lower than Most Nations

  17. Who Pays Income Tax?

  18. The National Debt: The problem of our Tax Policy • We accumulate annual budget Deficits • We have to Pay interest on this • We owe roughly 14 Trillion Dollars

  19. Everyone has a hand in it

  20. Comparative Debt

  21. The Debt • Disadvantages • Advantages

  22. What to about it • Raise Taxes • Cut Spending • Some Combination of both

  23. Raising Taxes • A Political Albatross • We like Tax Cuts instead • We Like sin taxes- but we are running out of these

  24. Raising Taxes on Who? • Soak The Rich • Make the Poor Chip in • Close Loopholes

  25. Change How We Tax • Add a consumption or VAT Tax • Add a Flat Tax • Try A “Fair Tax”

  26. Cut Spending • There is No Political Gain to do so • Cut Back on Entitlements • Reduce Discretionary Spending

  27. We Love to Spend

  28. Pay the Light Bill

  29. Economic Inequality AKA Poverty

  30. What is Poverty • Absolute Deprivation • Relative Deprivation

  31. The Role of Social Class • What is Social Class • How the United States compares to other nations • Why social class is not as important in the United States

  32. The Components of Social Class • Wealth • Status • Political Power

  33. The Wealthy • About 3% of the Population • Old vs. New Money • An Endogamous culture

  34. The Middle Class • Most of us claim to be in here • Upper-Middle • Lower Middle

  35. Working Class • About 30% of the Population • Not as identifiable in the United States as other Nations • Tend to be Hourly rather than salaried

  36. The Poor • Between 12-13% of the Population • Low Wage Jobs or do not Work full time

  37. The Political Impact Social Class

  38. Why not social class • The Parties do not try to exploit social class • We have never had an appreciable socialist movement • People identify with other groups before class

  39. Measuring Social Class • We ask people which class they belong to • We are very likely to say middle class • Within Social classes there are great variations in income • Our partisanship doesn’t change with rising or lowering class.

  40. Social Class and Partisanship Republicans Democrats Do better with poor and working class Do better with the very wealthiest Do better with Union Members • Do better with poor whites in the South • Do better with Upper Middle Class voters • Historically have done better with Middle Class voters

  41. Social Class and Voting • Wealthy people vote at higher Rates • Related to education • Lower Information Costs

  42. The Wealthy are More Likely to join Interest Groups

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