Road to Industry

A. Types of Economic Systems1. Traditional EconomyDefinition: based on faith/traditions Barter economy- trading, no money system

Problems: value (what = what) need (do you have what I need) 3rd world countrieshttp://www.economywatch.com/economies-in-top/http://www-personal.umich.edu/~lormand/poli/nike/nike101-8.htm

Road To Industry

2. Market Economydefinition: based on choice/competitionLaissez-Faire: government “hands off”.

(government does not control the economy) Free enterprise/survival of the fittestPure market economy- no unemployment

aid, no welfare, medicare, social security, or minimum wage.

Do any exist?

Road to Industry

3. Command Economy:Definition: Government owns/controls all means

of production -No private ownership or private business. Examples (Cuba, China)

Benefits: no unemployment Socialism/Communism No social classes-all equal

Road to Industry4. Mixed Economy:

Definition-market and commandExamples--US and Japan Benefits:

* Private Ownership*Options* Class systems Government influence: welfare system, medicare, healthcare, unemployment, minimum wage 2013 Budgethttp://en.wikipedia.org/wiki/2013_United_States_federal_budgetMinimum Wagehttp://www.minimum-wage.org/federal-minimum-wage

2013 Budget

Big BusinessCorporation

Definition: Company formed by investors who share ownership in proportion to investment

Investor: A person who owns stock in a corporationStocks: Piece of ownership of company Examples of corporationshttps://nyse.nyx.com/Fortune 500

http://money.cnn.com/magazines/fortune/fortune500/index.html

Big vs Small Business

Benefits Small Business Big BusinessQuicker Convenient (# of

locations)

Helps local economy Selection (variety)Customer Service Lower PriceRepair Convenience Warranty

Big vs Small

Who would you rather do business with???WHY?

Types of Corporations

• Vertical Consolidation (Legal)• Joined businesses engaged in different but related

activities• EXAMPLE

– Oil company (British Petroleum-BP)» Gas stations» Trucking companies» Oil refineries» Oil drilling» Construction companies

Types of Corporations

Horizontal consolidation:– Legal at one time– Illegal today! – Definition: company owns all competition

(monopoly)– Bad for consumers – Controls price – Example (Standard Oil-Rockefeller)• Exxon, Shell, Marathon, Citgo

Monopoly

Types of Corporations

Holding Company– Produces no products– No customers– A company that owns stock in other companies

Road to Industry

Labor Unions Definition: group of workers of same profession Goals: -Better pay/ no minimum wage-Working conditions/ equipment and training -Better hours/ overtime-Fairness in work place-End child labor (Industrial Period) http://198.234.41.198/w3/webwh.nsf/allbykey/0a2cc2509843265a852566180051af2e

http://usgovinfo.about.com/od/moneymatters/a/Labor-Union-Membership-Declined-In-2010.htm

Labor Unions

Business owner: why oppose it? • Costs to businesses• Alternatives: Cut employees or move overseas

– Cheap labor– Less government restriction– Fewer government regulations– Less cost to produce equals more profit

Are Unions good or bad? • Closed shop: no choice must join• Open shop: choice to join• Impact of unions on economy/consumers

What is Made in USA?

• http://www.bing.com/videos/search?q=made+in+america+or+made+overseas&FORM=HDRSC3#view=detail&mid=1315251BF88D49A66F571315251BF88D49A66F57

Social Changes

Urbanization Definition- moving of people to the cities

Rural>Urban>Suburb

City Life (Urbanization) Benefits Problems

Exchange of ideas Living space: overcrowded

Similar Ethnic backgrounds

Crime

More Tolerance Pollution

JobsTransportation/Access

Health issues-alcohol/drug problems

Immigration

Why come to the USA?– Freedom of religion– Job opportunities– Better life– Political freedom– Better Treatment– Education– Lifestyle

Immigration

• Where are immigrants from?• Majority: Europe and Asia (China)• In 2012, Hispanic, Middle East, and Southeast

Asia.

Immigration

Issues of Immigration– Discrimination

• Rise of Nativism• Laws-Government/

Segregation

Long Process to US citizenshipVisa Permanent Residency Green CardCitizenshipDeportationhttp://www.american-citizenship.org/naturalization/naturalization-eligibility-requirements.php

• US Citizenship Test• http://www.uscis.gov/p

ortal/site/uscis/menuitem.d72b75bdf98917853423754f526e0aa0/?vgnextoid=afd6618bfe12f210VgnVCM100000082ca60aRCRD&vgnextchannel=afd6618bfe12f210VgnVCM100000082ca60aRCRD