The Role of the U. S. in a Global Economy

The Role of the U. S. in a Global Economy Texas Council on Economic Education Laura Ewing 713.655.1650 laura@economicstexas.org 1801 Allen Parkway, Houston,TX 77019 www.economicstexas.org www.Smartertexas.org

TCEE Teaches teachers who teach students who are the future of Texas Provides interesting hands-on lessons that develop critical thinking skills for students in Economics, Social Studies, Math, and Career/Technical Education classes.

This workshop and the accompanying materials are made available to teachers through the generous support of State Farm and the Council for Economic Education.

Workshop and Materials Funded and/or Sponsored by:

Scholarships Available for Texas Hispanic Teachers

10 week Student Session • 10 Week Student Session Fall and SpringPrizes for Regional WinnersTeams of 4 to 5 students • Teaches math, investments, • decision-making

www/economicstexas/org How Do You Get These Materials? www.economicstexas.org

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TEKS for U.S. History Post Reconstruction • (13) Geography. The student understands the causes and effects of migration and immigration on American society. The student is expected to: • (A) analyze the causes and effects of changing demographic patterns resulting from migration within the United States, including western expansion, rural to urban, the Great Migration, and the Rust Belt to the Sun Belt; and • (B) analyze the causes and effects of changing demographic patterns resulting from legal and illegal immigration to the United States.

TEKS for U.S. HistoryPost Reconstruction • (15) Economics. The student understands domestic and foreign issues related to U.S. economic growth from the 1870s to 1920. The student is expected to: • (A) describe how the economic impact of the Transcontinental Railroad and the Homestead Act contributed to the close of the frontier in the late 19th century; • (C) explain how foreign policies affected economic issues such as the Chinese Exclusion Act of 1882, the Open Door Policy, Dollar Diplomacy, and immigration quotas;

TEKS for World History • (15) Geography. The student uses geographic skills and tools to collect, analyze, and interpret data. The student is expected to: • (A) create and interpret thematic maps, graphs, and charts to demonstrate the relationship between geography and the historical development of a region or nation; and • (B) analyze and compare geographic distributions and patterns in world history shown on maps, graphs, charts, and models. • (16) Geography. The student understands the impact of geographic factors on major historic events and processes. The student is expected to: • (C) interpret maps, charts, and graphs to explain how geography has influenced people and events in the past.

TEKS for World History • (1) History. The student understands traditional historical points of reference in world history. The student is expected to: • (F) identify major causes and describe the major effects of the following important turning points in world history from 1914 to the present: the world wars and their impact on political, economic, and social systems; communist revolutions and their impact on the Cold War; independence movements; and globalization.

TEKS for Geography • (5) Geography. The student understands how political, economic, and social processes shape cultural patterns and characteristics in various places and regions. The student is expected to: • (A) analyze how the character of a place is related to its political, economic, social, and cultural elements; and • (B) interpret political, economic, social, and demographic indicators (gross domestic product per capita, life expectancy, literacy, and infant mortality) to determine the level of development and standard of living in nations using the terms Human Development Index, less developed, newly industrialized, and more developed. • (6) Geography. The student understands the types, patterns, and processes of settlement. The student is expected to: • (A) locate and describe human and physical features that influence the size and distribution of settlements; and • (B) explain the processes that have caused changes in settlement patterns, including urbanization, transportation, access to and availability of resources, and economic activities.

TEKS for World Geography • (7) Geography. The student understands the growth, distribution, movement, and characteristics of world population. The student is expected to: • (A) construct and analyze population pyramids and use other data, graphics, and maps to describe the population characteristics of different societies and to predict future population trends; • (B) explain how political, economic, social, and environmental push and pull factors and physical geography affect the routes and flows of human migration; • (C) describe trends in world population growth and distribution; and • (D) examine benefits and challenges of globalization, including connectivity, standard of living, pandemics, and loss of local culture.

TEKS for World Geography • (11) Economics. The student understands how geography influences economic activities. The student is expected to: • (A) understand the connections between levels of development and economic activities (primary, secondary, tertiary, and quaternary); • (B) identify the factors affecting the location of different types of economic activities, including subsistence and commercial agriculture, manufacturing, and service industries; and • (C) assess how changes in climate, resources, and infrastructure (technology, transportation, and communication) affect the location and patterns of economic activities.

TEKS for Government • (6) Economics. The student understands the relationship between U.S. government policies and the economy. The student is expected to: • (A) examine how the U.S. government uses economic resources in foreign policy; and

TEKS for Economics/Free Enterprise • (4) Economics. The student understands the issues of free trade and the effects of trade barriers. The student is expected to: • (A) compare the effects of free trade and trade barriers on economic activities; • (B) evaluate the benefits and costs of participation in international free-trade agreements; and

TEKS for EconomicsFree Enterprise • (10) Economics. The student understands key economic measurements. The student is expected to: • (A) interpret economic data, including unemployment rate, gross domestic product, gross domestic product per capita as a measure of national wealth, and rate of inflation; and

PLACES AND PRODUCTION SOURCE: GEOGRAPHY FOCUS ON ECONOMICS

WHAT DO THESE MEAN? GDP GNP

DEFINITIONS • GDP: THE TOTAL MARKET VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED IN AN ECONOMY IN A GIVEN YEAR. • GNP: THE TOTAL MARKET VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED BY AN ECONOMY IN A GIVEN YEAR

WHY FINAL VALUE? • VALUE OF SUGAR, FLOUR, EGGS • VALUE OF FINISHED PRODUCT: COOKIES • WHY?

WHICH COUNTRY IS RICHER? • COUNTRY A GDP $100,000,000 • COUNTRY B GDP $200,000,000

WHICH COUNTRY IS RICHER? GDP • COUNTRY A $100,000,000 • COUNTRY B $200,000,000 POPULATION • COUNTRY A = 1,000,000 PEOPLE • COUNTRY B = 3,000,000 PEOPLE

PER CAPITA GDP • THE TOTAL MARKET VALUE PER PERSON OF ALL FINAL GOODS AND SERVICES PRODUCED IN AN ECONOMY IN A GIVEN YEAR. • What is U.S? • What is Texas GSP?

What is U.S. GDP vs. TX GSP? • U.S. 2007 2008 2009 2010 • $46,459 $47,015 $45,793 $47,153 • Source: http://data.worldbank.org/indicator/NY.GDP.PCAP.CD • 2010 U.S. $47,482 • #1 DC $174,500 • # 2 Delaware $ 69,667 • #24 Texas $ 45,940 • #50 Idaho $ 34,250 • http://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP

ACTIVITY 1: GDP • PLEASE READ THE ARTICLE • WHAT IS THE DEFINITION OF GDP HERE? • WHAT ROLE DOES MEASURE OF VALUE PLAY? • WHAT IS DOUBLE COUNTING? • WHAT ARE FLOW OF PRODUCT APPROACH AND EARNINGS AND COST APPROACH?

GDP • GDP = C + I + G + (X-M) • C = CONSUMERS • I = INVESTMENTS • G = GOVERNMENT • EXPORTS = EXPORTS – IMPORTS • U. S. POPULATION IN 1993 = $24,683 • WHAT DOES GDP NOT TELL US?

WHAT IS A CHOROPLETH MAP? ACTIVITY 2 WHAT ARE THE CHARACTERISTICS?

SOUTH AMERICAN MAP • THE GDP PER CAPITA OF CANADA IS BETWEEN $_____ AND $_____. • FOUR COUNTRIES WITH GDP PER CAPITA BETWEEN $15,000 AND $19,999 ARE: • THE NATIONS OF SOUTH AMERICA HAVE GDP PER CAPITA BETWEEN $___ AND $___.

HOW WOULD YOU SET UP A • CHOROPLETH MAP OF SOUTH AMERICA? PAGES 58 AND 59 • ENRICHMENT: CHOOSE A COUNTRY WITH A LOW GDP AND ONE WITH A HIGH GDP. SET UP A CHOROPLETH MAP TO SHOW THE DIFFERENCE. ALSO, VISUALLY DEPICT THE CAUSES OF THESE DIFFERENCES.

Push and Pull Factors “In 2002 the United Nations estimated that around 175 million people, or about 3% of the world’s population, resided in a country different from their country of birth.”

THE ECONOMICS OF IMMIGRATION • EXAMINE AN ECONOMIC MYSTERY AS TO WHY SWEDISH FARMERS MIGHT HAVE COME TO THE U.S. IN 1880 • STUDY VISUALS TO DETERMINE YOUR ANSWER • USE SUPPLY AND DEMAND ANALYSIS TO EXPLAIN WHY THE KING TRIED TO CONVINCE THEM TO RETURN

Why Did Immigrants Come To The U.S. Late 1800’s? • 1865 to 1920 = 28 million + to U.S. Sought higher standard of living Join family and friends Needed jobs due to surplus labor abroad Escape religious persecution Read advertisements of promises for better life Why do you think Swedish immigrants would have abandoned their lands in the late 19th and early 20th centuries to come to the U.S.?

DISCUSS VISUAL 22.I • Read the advertisement distributed to farmers in Sweden in the 1880’s by representatives of Union Pacific Railroad. • RR companies wanted to sell land, establish farmers in west who would sell and buy products distributed by the railroads. RR built ahead of demand. • Use visual 22.1 and Activity 22.1 to read and answer the questions in context of the information given. • Three rules of economic decision-making include that people: • Decide based on the most advantageous combination of costs and benefits • Respond to incentives in predictable ways • Must deal with the rule of the economic system and their influence on choices and incentives

VISUAL TWO • REVIEW THE STATISTICS • ESTIMATE HOW MANY IMMIGRANTS ARRIVED IN THE U.S. BETWEEN 1871-1920. WHAT HAPPENED IN THE 1870’S AND 1880’S AND 1916-1920 THAT HAD AN IMPACT ON IMMIGRATION?

REMINDERS • THE MARKETS ALLOCATE SCARCE RESOURCES. WHAT ARE THE SCARCE RESOURCES HERE? • WHAT ROLE DO IMMIGRANTS PLAY? • WHAT ROLE DO EMPLOYERS PLAY?

VISUAL 22.2: MIGRATION TO THE UNITED STATES • WHAT MIGHT HAVE BEEN PUSH FACTORS? • WHAT MIGHT HAVE BEEN PULL FACTORS? • WHAT WERE THE EXPECTED BENEFITS AND COSTS FOR THE SWEDISH FARMERS? • IF YOU HAD LIVED THEN, WOULD YOU HAVE MIGRATED TO THE U.S? EXPLAIN.

WHAT CAUSED A RETURN TO SWEDEN? • WHY WOULD SUCCESSFUL SWEDISH FARMERS DECIDE TO RETURN TO SWEDEN? • VIEW VISUAL 3 SUPPLY 2 SUPPLY 1 DEMAND

CLOSURE • IN WHAT WAYS CAN IMMIGRATION BE VIEWED AS ACTION TAKING PLACE WITHIN AN INTERNATIONAL MARKET OF BUYERS AND SELLERS? • WHY DID IMMIGRANTS COME TO THE UNITED STATES?

FOCUS: GLOBALIZATION migration: Lesson 8

1801 Allen Parkway • Houston, TX 77019 • 713.655.1650 • www.economicstexas.org Texas council on Economic education

Human capital Skilled workers Unskilled workers Emigration Immigration Brain drain Vocabulary and concepts

Why do people migrate? What are the concerns about immigration? What are the concerns about emigration? Focus: let’s begin

1. How and why do people react to incentives? 2. What role do incentives play? 3. What determines the income people earn? Content standards

1. Explore economic incentives that lead to migration, both economic and non-economic 2. Describe the difference between skilled and unskilled workers and the effects of immigration on both 3. What are the economic effects of immigration 4. Define/discuss cause and effect of brain drain 5. Illustrate impact of immigration on wages using supply and demand diagram Objectives

1. Do you know anyone who was born in a different country? 2. Was anyone in your family born in a different country? Student focus

Melting pot Salad bowl US 31 million born elsewhere 11 % of US population Define: Emigration & Immigration Why do people come to the US? United states: nation of immigrants

The Role of the U. S. in a Global Economy