Economies in TransitionEurope

Mike RaymerProgram ManagerGCEE

The Mission

To help teachers teach those students, K-12, in the public and independent schools of

Georgia

The Vision

• Productive Workers• Informed Consumers• Involved Citizens• Prudent Savers• Wise Investors• Sound lifelong decision makers in a

globally interdependent world

Students leaving school prepared for their roles as:

Workshop Objectives

Participants will…• increase their awareness and

understanding of contemporary Europe (political and economic)

• review instructional materials for use in social studies classrooms

Georgia Council on Economic Education

Challenge2003

New Superintendent takes office and hires Dr. Diane Ravitch to revise the curriculum

2004

New state curriculum adopted with detailed attention given to United States history at grades K-12 [with exception of world history].

Economics becomes only constant in the curriculum to address the reality of global issues.

Scope and Sequence

ElementaryK – Symbols of America1 – American Heroes2 – Georgia, My State3 – Our Democratic Heritage4 – US History to 18605 – US History Since 1860

Scope and SequenceMiddle6 – Modern World Studies7 – Modern World Studies8 – Georgia Studies

High (Grades 9-12)• United States History• American Government• Principles of Economics• World History

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State of the Art

Organizing Your Study of a Region

2. Textbook as Student Reference

3. Supplemental Resources i.e. GCEE

4. Assess Learning and Adjust InstructionalStrategies and Materials

1. GPS Driven

Focus on teaching the standards, not the textbook.

Nationwide, only about 70% of the context in any given textbook correlates to a given states standards document.

The 2004 adoption of textbooks for Georgia schools PRECEEDED the adoption of the GPS and has only about a 20% content match to the new standards.

EuropeEurope

in the in the Georgia Performance Georgia Performance StandardsStandards

Georgia Council on Economic Education

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Scope and Sequence

Grade 6 – World Studies•Latin America & Canada

– Canada, Brazil, Cuba, [Mexico]•Europe

– Germany, United Kingdom, Russia [Italy]•Australia

European Countries in the GPS

Countries Geography Civics Economics

Belgium

France

Germany

Italy

Poland

Russia

Spain

Ukraine

United Kingdom

Organizing Your Study of a Region

• Why study this place?– give a rationale

• Where is this place?– describe the geopolitical features

• What is the recent history of this place?– Only enough that the present makes sense

• What is the economy of this place like today?• What is the government of this place like today?

– understanding of economic and political issues

Why Study Europe?

Cultural Roots

Common Goals with the European Union

Economic Power

Handout

Where is Europe?

What is the Recent History of Europe?

Georgia Council on Economic Education

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Which Which economiceconomic

concepts are on the concepts are on the CRCTCRCT??

Curricular Context

Grades 6 – 7 economic conceptseconomic systems [traditional, command, market]trade [voluntary & non-fraudulent]economic growth [GDP]

Content Weight for the GPS CRCT

GPS Grade 3

Grade4

Grade5

Hist 30% 50% 50%

Geog 20% 15% 15%

Civic 30% 20% 20%

Econ 20% 15% 15%

Grades 6 7

Grade 8

29% 20% 47%

31% 35% 12%

15% 20% 25%

25% 25% 16%

Economics is…making decisions about

allocating limited resources to get the unlimited number

of things we want.

Our enduring understanding…

Economic Survival: Resources, Production,

and Scarcity

• Scarcity• Opportunity Costs• Productive Resources

– Natural/Land– Human/Labor– Capital Goods/Tools– Entrepreneurship

Economic Systems: How a Country Organizes

Its Economy

• Economic Systems– Traditional– Command– Market (what, how, for whom?)

• Resource Allocation

Economic SystemsPeople create rules for trade that fall along a continuum

between command and market.

Economic FreedomDemonstration Lesson

BelgiumGermany

U.K.Spain

France Poland

ItalyRussia

Ukraine

(Australia)(USA)(Hong Kong)

Working and Living Together: The Importance of Trade

• Specialization• Interdependence• Imports/Exports• Trade barriers

– Tariffs– Quotas– Embargo

TradeBoth parties gain when

people engage in voluntary, non-fraudulent trade.

TradeDemonstration Lesson

Exchange RatesDemonstration Lesson

-The price of one country's currency expressed in another country's currency.

-Rate at which one currency may be converted into another.

Gross Domestic Product: Measuring a Country’s

Income

• Gross Domestic Product (GDP)• Standard of Living

Gross Domestic Product

• Gross= total

• Domestic= produced anywhere in the 50 states, by anyone

• Product= final goods and services

What does GDP measure?

Total amount of final goods and services produced in a country

in one year.

(Measure of Output)

Are there any cool formulas you can give us relating to this

interesting concept?

GDP=C+I+G+(X-M)

• C= consumption spending (think consumers)

72%

• I= investment spending (think businesses investing in themselves)

15%

• G= government spending17%

• (X-M)= difference between exports and imports -4%

What is counted in GDP?

• FINAL goods and services

• Goods/Services produced here, even if by a foreign co.

What is NOT counted?

• Things produced outside the country.

• Illegal stuff

• Purely financial transactions

…and INTERMEDIATE GOODS

Problems associated with GDP

• Slow to calculate

• Does not count everything (it’s an estimate)

• Inflation can distort the figure

Real vs. Nominal

GDPUnited States is #1 at $14.6 trillion

China is #2 at $5.8 trillion

Japan is #3 at $5.4 trillion

Germany is #4 at $3.3 trillion

The EU collectively is $16.1 trillion

Per Capita GDP

GDP divided by a country’s population

Human Poverty

Undernourishment

Underweight Children

Poor Sanitation

Secondary Education Spending

Public Health Spending

Physicians Working

Malaria Cases

Mortality 1-4 Year Olds

Internet Users

Why are some nations wealthy?Rich Nation/Poor Nation handout

Mystery Nations Revealed

Country A… Germany Country D… UK

Country B… Poland Country E…Ukraine

Country C… Russia

Per capita GDP-$34,200

Per capita GDP-$17,900

Per capita GDP-$15,100

Per capita GDP-$34,200

Per capita GDP-$6,300

Georgia Council on Economic Education

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Why are Ukraine and Russiarelatively poor

(…seeing that they have so many natural resources) ?

Why are Germany and the United Kingdom relatively wealthy?

Factors Contributing to Long-Term Economic Growth

• High Investment in Human Capital• Greater Economic Freedom

low taxes, fewer govt. regulations, protection of property rights, sound monetary policy

• Strong Incentives to save and invest• Competitive Markets• Political Stability• Free Trade

The German Economy

Berlin2011

Berlin 1945

1945- Germany Had Lost…1. Major land holdings.2. Tens of millions of people.3. Most major industries.4. Major amounts of housing.5. International respect.

30 years later…

Germany had 2nd largest economy in the world.

Essential question: How in the heck did that happen?

Georgia Council on Economic Education

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What is needed?

Productivity

Invest in…1. Capital Goods 2. Human Capital

Raise…1. Financial capital

Contributing factors…

1. Modernization of industry.2. Financial aid (Marshall Plan)3. No military forces.4. High Savings rate.5. Investment in human capital (education)

“Miracle” Explained

1. Web Resources2. EU Lessons