day 8 economic issues

First Economic Assignment1. Do you think a poor person can still get rich in 2014? Explain why

that is or isn’t possible2. Which is the best way to pay off the $17 trillion debt: raise taxes,

dramatically cut spending, or both3. Are you willing to pay higher taxes to pay off the debt that your

grandparents and parents voted for?4. How is this graph evidence that Reconstruction failed?

Check out Hamilton’s plan on 204• USA a broke, baby country• As a group on each person’s paper: &

explain each#5. Would you vote for his plan in 1776?#6 How much of his plan do we have today?#7 If you owned a factory in Boston would

you have voted for this plan?#8 If you were an indebted farmer in

Tennessee would you have voted for this plan?

#9 The US did pay off its foreign debts, how would our history be different if they had not paid it off?

Thought questions:1. Which 2 states has the most electoral votes?

2. Which 2 states have the least?

1832 Electoral map

1832 Election

• Democratic• Andrew Jackson (TN)

– VP Martin Van Buren

• Whig• Henry Clay (KY)

– VP John Sargent

States for simulation• New York 7• Pennsylvania 6• Virginia 6• Massachusetts 4-5• North Carolina 3-4• Illinois 1• Missouri 1• Rhode Island 1

• http://www.270towin.com/

1832 Electoral map

Andrew Jackson (1767-1845)

• Hero of War of 1812• “Indian Fighter” of Florida• Slave owner from Tennessee • “Old Hickory”• Lost presidency 1824• Returned as “Democrat” 1828• Reelected in 1832• Spoils system

Next Economic assignment1. Why do some people keep

their money in cash instead of at the bank?

2. Why do most people put their money in the bank?

#3 OPTIC on this 1901 $10 bill

Banking SimulationSplit room into ¼ sA. Student loan borrower $10,000 – fixed rate 5%B. Student loan borrower $10,000 – variable rate 4%C. Student loan lender $200,000 - fixed rate 5%D. Student loan lender $1,000,000 – variable rate 4%

US Central bank increases money supply by $3 trillion

Congress raises taxes by 10%

US Central bank lowers interest rates by 2%

US Central bank increases interest rates by 5%

US Central bank decreases money supply by $3 trillion

1840’s and beyondJackson vs. 2nd bank of US

Westerners and Farmers distrusted banksCheaper currency (inflation)

Easterners wanted stronger banking rulesStronger currency (stability)

Government created inflation

• 1770’s – pay the Continental Army

• 1860’s CSA $$• 2010’s $3

Trillion new $$

What happens today?Pull out your $$$

Who regulates the banks today?• “The Fed”

• 1913

• SF Earthquake 1906

• “Panic of 1907”

The Fed’s structure

The Federal Reserve System

The Federal Reserve Banks The New York Fed implements

some of the Fed’s most important policy decisions.

Why is the Chairman of the Fed sometimes thought of as the “second most powerful

person in the US”?

• Monetary change:: increases interest rates

• Effect:

• Monetary change: decreases interest rates

• Effect:

Page 261

• # 2 & 3

Next Assignment1. Summarize the plot of the “Wizard of Oz”2. Why do you think our money has value?

2001 $20

1920’s $20

The Wizard of OZ• Frank Baum 1900• Election of 1896 – page 474• Ruby Slippers actually silver• Yellow Brick Road = Gold• Wicked Witch of East =

Bankers/Industry• Glenda of West = Farmers• Dorothy = American people

Money Supply

• 5 items more expensive than when you were younger

• 5 items cheaper than when you were younger

Money Supply

• Inflation: prices rising• Good for….• Bad for…

• Deflation: prices decreasing• Good for…• Bad for…

Money Supply

• Gold Standard

• “Free Silver”

• Greenbacks: fiat currency

1896 William Jennings Bryan

1896 Election

vs

1896 Election page 474

Election of 1896 Questions Chapter 153 Contrast William Jennings Bryan and William

McKinley’s campaigns4. Explain how this election was actually about the

money supply of the US5. Why did the Midwest and southern voters support

Bryan?6. Analyze this election. Why did McKinley win?7. Explain how you would you vote for in 1896.8. Predict who the voters of Arizona would have

supported in 1896? (AZ economy based on mining)

9. Compare this election to the election in 2016.

Next Assignment1. Was Andrew Carnegie born wealthy?

2. How did he become a billionaire?

“Titans of Industry”• 10 “tweets”• Born, died• 1 picture that represents their life• What industries or industry were they part of?• How did this person help the United States• What lessons can you learn from this person’s life?

Henry Clay Frick1870 – Dropped out of college, waste of my time1880 – Got a loan from A. Mellon, now I have my

own steel co.!1881 – Merged my co. w/US Steel, Carnegie is one

cool dude1885 – Makin’ mad skrilla in da steel trade1889 – Survived Johnstown flood. Going to sue the

city of Pittsburgh1892 - @ AFL Go home strikers you’re fired!7/5/1892 – Had private agents shoot and disperse

union strike at Homestead factory. Good day for management

7/23/1893 – Anarchists tried to kill me, but failed! Thx Pittsburgh PD!

1906 – My attempted assassin was freed from prison

1910 – Decided to leave my big baller art collection to charity

(1849-1919) Industry: Steel & Mining Helped USA: Major investor

in other businesses. Ended Homestead Strike

Lesson for students: Be careful not to be too ruthless in business. 2. Donate your art collection and be remembered forever

1. Why is being a firefighter a dangerous job?2. Why is working at a factory a dangerous job?

Late 1880’s

• Largest industries in US?

Jobs in the 1880’s-1910’s• Work was different• 6 day work week• No overtime rules

(10-12 hour days)• No workers’

compensation• No holiday pay• No benefits• No discrimination

rules

Union vocabulary

• To organize

• Labor contract

• Strike

• Lockout

Simpsons Unionization questions1. What type of union is Homer a member of?2. What does Mr. Burns remove from the labor

contract?3. What is management’s view of the employees?4. How does Homer’s union achieve their goals?5. Why do you think firefighters and police officers

have stronger unions than software programmers?

6. Do unions still have a place in modern US society?

Andrew CarnegieJohn D. RockefellerCornelius VanderbiltLeland StanfordJames J. HillJay GouldJ. P. MorganSamuel GompersAlexander Graham BellThomas Edison

Andrew CarnegieJohn D. RockefellerCornelius VanderbiltLeland StanfordJames J. HillJay GouldJ. P. MorganSamuel GompersAlexander Graham BellThomas Edison

1. Who is the first member of your family to have moved to Arizona? (That you know of)

2. Why did they move here?

Page 386• “Boomtowns”

Mining & Ranching Game• Chapter 14• In your groups, write 5 good history questions• You will get to ask 3 of them to the class• Group with the most correct answers wins 5

points of extra credit

Mining & Ranching in the American West

Rosemont Copper Mine

• 3 paragraph persuasive letter to AZ Daily Star either supporting or opposing the new copper mine

• Each paragraph should address one reason of support or opposition