DNA # 15

1. DNA # 15 Each nation must decide what it is willing to give up to meet it’s goals. Personally what are you willing to give up? Are you willing to pay taxes to fund the army? To give money to people without jobs? To give all people an education? To subsidize farms?

2. The “free” Market • Benefits – • Efficient: things only get made that people believe will be consumed • Competition: businesses competing for us to buy their products makes them innovate better and better things • Choices: people are free to choose (what, how, who) BIG DOWNSIDE ? - Nobody to enforce rights or set rules and people are not born equal (rich vs poor)

3. The Centrally Planned Economy • Benefits – • Stable: No business will go bankrupt and nobody will be unemployed. • Equality: Majority of society is equal to one another • Government Subsidies : government can front of the money for capital heavy industries • (oil refineries, new machines/factories etc.) BIG DOWNSIDE ? - No incentive to work hard or improve business. Everyone becomes equal… equally poor

4. The Answer Combine best of both to get a stable innovative economy… • Mixed Economy • Free Market Competition balanced by a Democratic Government who involves when “needed • Example…. United States

5. United States of America • The most prosperous land the world has ever known… comes at a heavy price… we are going to be talking billions… trillions… of dollars… numbers soo big

6. Picturing 1 Billion Dollars… in “Benjamins” 1,000,000,000

11. Rise of the “Mixed Economy” • Free Market with limited government involvement • National defense • Roads and Highways • Education • Enforcing Property Rights and Contracts

12. The Trident-2 D5 has a range of 12,000 km, carries 8 to 12 multiple independently targetable reentry vehicle (MIRVs), and constitutes the mainstay of the U.S. submarine-based nuclear deterrent. It is currently deployed aboard 12 Ohio-class submarines, each of which carries 24 missiles • Purpose: strategic nuclear deterrence • Unit Cost: US $30.9 million • Range: > 11,300 kilometres (7,000 mi) • Maximum speed: > 6,000 m/s (>21,000 km/h, >13,422 mph).[2]

13. 18 …oHIo …class submarines @ $2,000,000,000 EACH 50 billion just in ohio-class Submarines… Add $744 million in nukes

14. 10 aircraft carriers… = 60 billion

15. Who in the free market would pick up the cost of these in America? • Total Defense Budget • 1.0 – 1.5 TRILLION dollars per year… • Total Education • 2013 … expected to be over 1 trillion dollars (1 year) • Total Unemployment cost since recession over 100 billion per year • Total Spending on Roads and Highways? 73 Billion • Farm Subsidies • 20 billion

17. Product Market : where goods and services are sold

18. Factor Market : where factors of production (labor) are bought and sold

20. Class Disparity

21. Poverty vs Wealth

22. Review Questions 1-1

23. 1-2

24. 2-1

25. 2-2

26. 2-3

27. 2-4