Unit 5 - Economic Principles
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1 Unit 5 - Economic Principles Key Concept: Connections Related Concepts: Resources, Equity Global Context: Globalization and Sustainability Statement of Inquiry Resources have connected our global economy in a way that is currently unsustainable and lacking equity for the majority. Criterions: A-Knowledge and C-Communication Summative: A-Test, C-Invention business plan model
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3 World G.D.P.
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6 Traditional Economy the oldest economy in the world from ancient times little to no money/currency exchange bartering and exchanging of goods and services are used most interactions are done in common markets farming is usually a key ingredient for this type
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8 Capitalism (Free Market Economy) Adam Smith ( ) is father of modern capitalism His publication "The Wealth of Nations" is a standard still idea of supply and demand... competition! The market (people) decide on how much of a product they want and the business makes the supply and sets prices
9 Capitalism (Free Market Economy) Supply and demand is the standard that our world uses today to trade and interact with each other No government interference in it purest forms Has a feel of Darwinism "The strongest survive" Laissez-faire is often used "Leave it alone" or "Let it be" Can lead to great innovation from competition... but also can cause people to be taken advantage of and ruin environment
10 Command Economy (Planned) production and distribution of good is decided by gov't first took hold in U.S.S.R. (Soviet Russia) very similar characteristic to communism including equality and sharing (totalitarianism under Stalin) often focuses on large industries such as heavy industry, large farming co-op's, and military development
11 Command Economy (Planned) everyday needs are not often met with this you can wait for long period of time for simple things in cases of a bad growing season many people can starve if everyone gets the same no one is motivated to work harder b/c there is no INCENTIVE good in theory but not in real life Soviet Union collapsed in 1991 and PRC (China) uses a modified system with many free market ideas
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14 Mixed Economy most governments today use some sort of a mixed economy the free market still controls most prices along with supply and demand the government is there to regulate the market and make sure we get what need (taxing, worker/environment laws) they use taxes to supply things that the market won't give us (Hospitals, Schools, Fire/Police, Military, Roads, Energy) U.S. is a mixed economy
15 First Industrial Revolution Was a major turning point in the history of the world It's impact have effected everyone and everything since Started in Britain and quickly spread to Europe and North America Switch from manual/animal labor to machine labor Created a boom in textiles(cloth), iron works, and speed of production Used both water to run mills and coal to create steam to power machines Steam power - Metallurgy Steam powered engine Spinning Jenny - Cloth
16 Change from rural life to urban life Production increases enormously Why is this important?? Natural resources became coveted by all countries Steam power led to coal mining and the ability to run factories far from direct water supplies Pollution and horrible working conditions were common
17 Second Industrial Revolution began around 1850 was a continuation of the advances in the 1st Industrial Revolution Steam powered ships, railways, combustible engine, and electrical power the idea of "interchangeable parts" revolutionizes production many countries switch to the capitalistic economy even worse working conditions for people child labor becomes a major problem daily human life is changed forever people become consumers more so than ever
18 Why is this important? For one it made everyday products available to most people in the world Child labor led to social reforms that made restrictions on children going to school Unions of workers popped up to fight for their rights, work hours, better conditions, and better pay Gov't started paying attention to the effect on the environment and monitoring how food is given to the public New push will be how do/can we make industrialization "greener" for future Bottom "Green innovation" slide show
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