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    • Chemistry
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    • Pre-calculus & Calculus
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Economics & U.S. Government

Course Outline

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2022-23 Textbook: We will be using BJU Economics, 2nd or 3rd edition. The two editions are almost identical, and the 2nd edition is cheaper. You do not need a separate 'workbook'. I will be linking to the Declaration of Independence, Bill of Rights, and the U.S. Constitution when we get there. 
graph_paper_10ths.pdf
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economics_-_investment_game_2022-23.docx
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​en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita
​https://www.usgovernmentrevenue.com/

The Foundations of Economics

Unit 1: Introduction
Reading
BJU Economics, Ch. 1

Topics
  • How individuals make choices
  • Scarcity & budget constraints
  • Opportunity cost
  • Benefits of Trade
  • Personal Budgeting
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Lab
"Auctioning-off Dollars" - A classroom experiment in sunk costs and marginal costs
Learning objectives: decision-making using marginal analysis, sunk costs, competition
Intro_to_economics_ppt_slides.pptx
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ch._1_-_foundations_lecture_notes_2022.docx
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1._ch._1_foundations_lecture__part_2__2022.docx
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1._ch._1_thought_questions.docx
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Ch. 1 Section Review questions
​Instructions: Complete 'Section Reviews' 1A, 1B, and 1C. This is (10) questions total. Be sure to type out the questions in addition to your answers, and keep the same numbering system as the book. Upload to Canvas when finished. 
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Unit 2: Economic Models
​Reading
BJU Economics, Ch. 2

Topics
Factors of Production
Supply and Demand
Production Possibilities curve
Using Excel in budgeting
​Begin discussing U.S. Budget
Personal finance: Consumer protections

Labs
"World Oil Supremacy" - a classroom experiment on cartels and human behavior
"Risk and Reward Game" - a classroom simulation in stock & bond portfolio allocation
Below: If consumers were persuaded by Chick-fil-A to eat more chicken and less beef, would the cattle population increase or decrease? Be careful, the answer might not be obvious...
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2._ch._2_-_economic_models_lecture_notes_ppf_curve_benefits_of_free_trade_factors_of_production.docx
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​Ch. 2 Review Questions
​Instructions: Complete Section Review 2A (3 questions), Section Review 2B (4 questions), and the "Application Questions" (3 questions). This is (10) questions total. Be sure to type out the questions in addition to your answers, and keep the same numbering system as the book. Upload to Canvas when finished. 

The Role of Markets

Unit 3: Demand
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Reading
BJU Economics, Ch. 3

Topics
  • The law of demand
  • Demand curves
  • What causes changes in demand?
  • The function of prices
  • Normal, Inferior, and Complementary goods

Labs
  • "Widgets and Whajamas" - to illustrate the Production Possibilities Curve or Frontier
  • "Risk and Reward Game" - a classroom simulation in stock & bond portfolio allocation
  • "World Oil Supremacy" game
Be prepared to critique the video below using economics principles we have learned so far
PPT slides on "demand".ppt
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"Buying_a_Car"_assignment_2022.docx
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Unit 4: Supply and Prices
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Reading
BJU Economics Ch. 4 "Supply and Prices"

Summary:
The 'Supply Curve' is sloped upward. At a higher market price, suppliers are willing to produce more goods.
  1. Price is shown on the y-axis
  2. Quantity is shown on the x-axis
  3. Equilibrium occurs at the intersection
"Changes in Quantity Supplied"
  • This is simply where the quantity of goods supplied slides up and down the supply curve as dictated by the price.
"Changes in Supply"
  • This is where the entire supply curve shifts left or right, based on the Determinants of Supply
"Determinants of Supply"
  • Changes in technology
  • Changes in production costs
  • Changes in the price of related goods
   
In a "free market system" the quantity of goods supplied will return to equilibrium if there is a temporary surplus or shortage.
  • This is called the 'Market Solution'. Both producers and consumers are benefitted.

In a "command economy" the government imposes price controls to regulate supply and demand
  • The "information" function of prices is then lost
  • Price ceilings lead to shortages. Consumers are hurt.
  • Price floors lead to misallocation. The economy suffers.
This leads us to an overview of 'Government Systems':
  1. Market economy = private individuals & firms make their own economic decisions; what to make, and what prices to charge. You are free to raise capital from private sources, banks, stockholders. Investors expect to receive a return on their investment. 
  2. Socialism = the government owns the 'factors of production'. Production and pricing decisions are made by politicians, rather than via supply/demand feedback. Modern Socialist governments own the majority of stock of the big companies; small companies are left private. 
  3. Communism (Marxism) = Private property is an "evil" of the West. There needs to be a constant state of revolution, with the enemies defined as 'property owners' and the 'Bourgeoisie'. There are no 'individuals' as we think of the term, with individual rights and liberties; instead, everyone is part of a 'class'. A small group at the top make the decisions. There are shortages of everything, and an underground market thrives.
  4. Monarchy = the King owns everything, or at least wants a piece of the action. Private commercial enterprises require approval from the King, who naturally wants control. The U.S. rejected this approach in 1776.
  5. Oligarchy = a group of families run the country. They exercise their control over private commercial enterprise through family connections. A common approach in some countries.
  6. Theocracy = the Mullahs or Priests are in charge. Economic freedom isn't part of the deal. 
As a practical matter, all modern economies are a blend of two or more of the above.
4._supply___prices_ppt_slides.ppt
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Supply & Prices_homework questions_2022.docx
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World Oil Supremacy classroom experiment
This is a "supply" simulation. It's dealing with the question, "How should we handle the supply problem?"
Lessons: Cartels always break down, due to 'defectors'. People will always seek their own self-interest. Any system which is based on people's "altruism" is doomed to fail. A system based on "Fairness and Guilt" doesn't work because people will seek their own self-interest. A Dictator tends to keep all the profits, or at best re-allocates them in order to get 're-elected'. A free market system using supply & demand curves tends to benefit suppliers and consumers and guarantees a steady supply. This is an example of Adam Smith's Invisible Hand.
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Economics of the Nations

Unit 5: What is the economic problem? 
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Reading
BJU Economics, Ch. 5 

Outline
What are our National economic goals?
  1. Low unemployment
  2. Low inflation
  3. Steady GDP growth
  4. A level playing field (opportunity for all)
Consider three National economic questions:
  1. What should we produce?
  2. How much should we produce?
  3. For whom should we produce?
Market Economies vs. Command Economies
Communism assignment
Now we will start discussing and comparing 'forms of Government' as it relates to Economics. In this case study we will look at Communism as it existed in the Soviet Union. 

You will watch part of a documentary and answer some questions. 

Access "The Soviet Story" video on Rumble and/or YouTube: 
  • https://rumble.com/v24acn6-the-soviet-story-2008.html
  • ​​https://www.youtube.com/watch?v=G1OZYoxaJ2Y
communism_assignment_-_the_soviet_story__rev_2022_.docx
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Income Statement & Profits assignment
We'll start learning how to read a P&L
income_statement_and_profits_assignment_2022_-_choc_jalapeno_business_year_2_results.docx
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income_statement_example_choc_covered_jalapenos.docx
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Unit 6: Economic Systems
Reading
BJU Economics Ch. 6

Outline
Any discussion of economics must include a discussion of Government.
  1. Many government systems have been devised; but at the end of the day, history is the story of man ruling over his fellow man. Therefore, if you consider what type of government a country has, it will be easier to understand its economic framework.
  2. Government, in the purely 'political science' sense, is legalized force. If you don't pay taxes to Caesar, you'll be arrested and go to jail. 
  3. Therefore, the economic system of a country reflects the type of government it has - because the "economy" is really just how people and firms are planning and interacting on a day-to-day basis.

​Now we'll look at Capitalism:
"Capitalism" arose from the writings of Adam Smith's "Wealth of Nations".
​The idea of Capitalism is that in order for citizens to enjoy economic and political liberty, they must strictly limit their government to three major duties.
  1. The government is to protect its citizens from violence and invasion
  2. The government is to protect the rights of its citizens from infringement by others
  3. The government is to provide public goods. This would include highways, large civil works, a system of courts, public schools, a military, a monetary system, and so forth.
The word "Capitalism" just means you can raise your own capital. You don't have to go to the King or Dictator to raise money. You, yourself, can go directly to banks, private individuals, your friends, your parents, the stock market, or "crowd-funding" to finance your enterprise. Those supplying you with capital are then entitled to receive a return on their investment.

With Capitalism, individuals own stock in companies. They have real ownership in the Factors of Production. Even a poor person can own a small portion of a business enterprise. Almost all large corporations in America are in effect owned by multitudes of average, ordinary citizens. This is something Marx and Engels did not foresee.

"Laissez Faire" is a famous term used in economics which means "leave us alone". It was the French telling their King, "Stop meddling in the economy, because you're wrecking it".
Here's a quick summary of economic systems: 
  1. Market economy = Private individuals & firms make their own economic decisions. Supply and demand of goods & services is maintained through the disinterested actions of thousand of individuals - without input from bureaucrats. For this to succeed, the government must protect private property and provide a fair system of courts which uphold private contracts. In practice, it's almost impossible to have a pure market economy. 
  2. Socialism = The government owns the Factors of Production. Production and pricing decisions are made by government. In a modern socialist country, the government owns a portion (say 50%) of the biggest companies, and essentially controls them that way. If you want to start your own, you have to compete against the 800-pound government-sanctioned gorilla, making it more difficult. 
  3. Communism (Marxism) = Communism is "Collectivization". There is no private property allowed. Property - such as a business or family farm - is taken away from you at gunpoint. Marxism is not about "individual liberties". It's about State control of everything. A small group at the top make the decisions. There are shortages of everything, and an underground market thrives. Marxism is overwhelming, centralized power without regard for economic or civil liberty. 
  4. Monarchy = In a true monarchy, the King controls everything. If you wanted to start a private commercial enterprise, you needed approval from the King. The British Crown, for example, very reluctantly allowed private corporations in the 1800's. The Roman Emperors viewed any kind of corporation or private business group as a potential threat to their power. The U.S. rejected the concept of Monarchy in 1776, in favor of government "of, by, and for the people".
  5. Oligarchy = A group of families run the country. They exercise their control over private commercial enterprise through family connections. A common approach in some countries. Sometimes referred to as a "traditional economy".
  6. Theocracy = The Mullah's are in charge. Economic freedom is not part of the deal. In Middle Eastern oil-rich countries, the wealth is concentrated at the top.
As a practical matter, all modern economies are a blend of two or more of the above.
Common Property experiment
"A common property experiment with a renewable resource"
Learning objectives: property rights, allocation of natural resources, negotiation, cooperation
Discussion: "Tragedy of the Commons"
a_common_property_experiment_with_a_renewable_resource1.docx
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Capitalism, Profits, and Justice
capitalism_profits_and_justice_assignment_2022.docx
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Economics of the Business Firm

Unit 7: Forms of Business Ownership
Class lecture slides - Forms of Business Ownership
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Reading
Ch. 7 "Forms of Business Ownership"

Outline
Classically, there are 3 forms of setting up a business
1. Sole proprietorship
2. Partnership
3. Corporation

Sole Proprietorship
  • The most prevalent form of small business. Accounts for 75% of small businesses.
  • Has one owner (You). Can't use "Inc." after the name.
  • Cheap to get started and has many advantages, but it's hard to raise capital.
  • Main disadvantage is you have unlimited personal liability for the business debts and losses.

Partnership
  • Two or more persons own the business.
  • The partners draw up a private Partnership Agreement, dealing with all aspects of running the business.
  • Mainly used when 2 or 3 entities want to run a business together. Accounts for less than 10%.
  • A completely private arrangement and you don't have to share proprietary information with outside people.
  • Disadvantage: each partner is liable for the business debts and losses (unless it's a Limited Partnership).
  • Disadvantage: partners often disagree about things, straining relationships. Also, adding partners (or separating from partners) can be clunky - the partnership agreement may need to be rewritten, which is not always easy.
Corporation
  • A corporation is an "artificial business entity" created with the State of California (or any other state). It has its own legal identity, separate from its founders. Has a life of its own.
  • A corporation can enter into contracts, own property, buy & sell, and be sued - just like any natural person can.
  • Almost all really-large firms are Corporations.
  • You can start a small corporation simply and cheaply by filing Articles of Incorporation with the California Secretary of State and paying around $100 filing fee. You can get all the documents you need from an Office Supply store or on the Internet. Alternatively, you can hire an attorney to set it up for you.
  • Corporations sell stock to raise capital. Each owner of stock - called a "shareholder" - then gets 1 vote at the annual shareholder meeting, to elect the business Directors. The Directors are responsible for overseeing the business. We will cover this in more detail in the class.
  • Important: the company Officers are responsible to the Directors, who are then responsible to the Shareholders. The Shareholders are at the top!
  • The main advantages are 1) limited liability for the firm's debts and losses, and 2) a nice, flexible arrangement for raising capital.
  • Possible disadvantage: you are giving up control of your business. You may still own some of the voting stock yourself, but you are taking on additional shareholders and Directors who will want a say in things.
The Fortune 500 companies list
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"Research_a_Corporation"_assignment_2022.docx
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Unit 8: The Stock Market
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8._stocks_and_bonds_lecture.docx
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Reading
Ch. 8 "The Stock Market"

Summary
When you own shares of stock, you own a portion of a corporation. You now have the right to participate in the activities of that firm.

Note:  The concept of "stock" has to do with Corporations. There is no "stock" with a Sole Proprietorship or a Partnership (see the previous Unit, where we studied the various business types).

If you own a few shares of a huge corporation - say General Motors or Apple, Inc. - your involvement in the firm is pretty much limited to casting your one vote per share at the company's annual shareholders' meeting. On the other hand, if you own 51% of a firm's stock, you can exercise total control of the firm's affairs. And as a practical matter, if you own say 20% to 30% of the voting stock in a large corporation, you can exercise almost total control.

Selling its stock to the public is a way for Corporations to raise capital (the other way is for the firm to borrow money, or sell bonds to the public; more on that later in the course). Example: Let's say you started a manufacturing business 5 years ago, and now you're ready to buy new machinery or a new factory and greatly expand your business. Doing this takes large amounts of capital. If you are organized as a Corporation, you could create new shares of stock and sell that stock to your friends, relatives, or to the public - and raise the needed capital that way.

Why would your friends, or the public, be willing to buy your stock? Because that gives them a stake in the ownership of your firm, plus the right to receive quarterly dividends that you will pay them out of your firm's future profits. Furthermore, they could even sell their stock to someone else after 5 or 10 years for more than they paid for it, reaping what we call a "capital gain". So there are several reasons why you - or someone else - might want to buy stock in a corporation.

Now, obviously this is a simplified scenario - you need to comply with California laws and with the Securities Exchange Commission rules - but that is basically how stock works.

​In the lecture we will cover the types of stock, the major stock markets, Initial Public Offerings, and the various stock indexes (better: indices) you read about on financial websites.

Ch. 8 Review Questions
Hosted in Canvas

​Classroom Activity
Stock market simulation using Monopoly.
Objectives: How to raise capital for a business by creating and selling stock, negotiation, investing principles.
economics_midterm_review.docx
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​Unit 9: Market Structure and Competition
Lecture Slides: Market Structure & Competition
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Reading
Ch. 9 "Market Structure & Competition"

Summary
Types of Competition
  • Perfect competition
  • Imperfect competition
  • Oligopoly
  • Monopoly
Markets
  • What is meant by "market"
  • Product differentiation
  • Barriers to entry
  • Control over prices
Antitrust Legislation
  • Sherman Antitrust Act of 1890
  • Clayton Act of 1914
  • What is a "Trust"
  • Why don't we like Monopolies

Financing a Business class experiment
"Financing a Business" simulation using a modified Monopoly platform.
Objectives: How to finance several rounds of business operations, make decisions at the Board level, pay dividends or plough-back earnings, and manage a P&L statement
Raising Capital for a Business
Broadly speaking, there are three (3) ways a corporation can raise capital to expand or carry out new projects:
  1. A corporation can issue and sell shares of stock. The money raised from selling stock goes into the firm's bank account, where it can be used to carry out the intended purposes. It doesn't go into the officers' pockets! The persons who buy the stock (now called shareholders) usually expect to share in the firm's profits by receiving quarterly dividends and capital appreciation of their stock. They can also participate in the firm's decision-making, by voting their shares of stock.
  2. A corporation can sell bonds. Investors can buy a bond for its "face value", typically $1,000. This money flows into the firm's bank account, as described above. In return, the bondholder is entitled to receive interest payments, called "coupon payments", at predetermined intervals - typically yearly, semi-annually, or quarterly. At maturity, the bondholder also receives his/her principal - the original $1,000 - back again. So if the coupon is 6% annually, and the bond term is 10 years, the corporation must pay each bondholder $60 per year in interest, plus return the $1,000 principal after 10 years. Note that the corporation only pays the interest during the 10 year term, and returns the principal only at the end.
  3. A corporation can borrow money from a bank. The bank lends the money to the firm, and the firm gives the bank a "note payable". Throughout the term of the loan (for example 1 year, 5 years, 10 years) the bank is entitled to receive monthly payments consisting of principal AND interest, and the loan is discharged by the end of the term.
9._markets__&_competition_homework_questions_2023
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The largest 500 U.S. Corporations
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Dictators, Monarchs, and Presidents: Comparative Government, part 2: 
You will watch part of the documentary below and answer some questions. 

Access the documentary on Rumble and/or YouTube: 
  • https://rumble.com/v24acn6-the-soviet-story-2008.html
  • ​​https://www.youtube.com/watch?v=G1OZYoxaJ2Y
dictators_monarchs_and_presidents_2022.docx
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Financial Markets

Unit 10: Money and Financial Markets
Class preparation
Read Ch. 10 "Money and the Financial Market"

Lecture topics
Functions of money
  • A medium of exchange - Money makes it easy to pay for things and conduct business. Without money you would need to "barter" for everything, which doesn't work very well.
  • A store of value - Money provides a convenient way for us to store value; to hold our assets. You could hold all your assets in the form of cars, houses, stocks, food, ammunition, and gold bars - but you would have to sell these things or "barter" them in order to go out and buy anything. In contrast, money is "liquid" and can be easily transformed into the things you need every day. Also - food can spoil and cars can rust, whereas money at least retains its 'face value'. (We will talk about inflation in a later chapter).
  • A unit of account - Just as we use feet and miles to measure distance, we use the U.S. dollar to measure the cost of good, services, and assets we buy & sell. If instead we all used seashells and cows and bales of tobacco for money, it would be much harder to assign a "value" to anything.
Modern money is "Fiat Money". (Fiat = a decree by the government). It's not backed up by gold. 
  • Paper money has value due to its supply and demand. If the government prints too much money, it isn't worth as much (the supply outstrips demand). The dollar's purchasing power has decreased significantly.
  • Paper money is backed by the Federal Govt's ability to tax.
Money Supply
  • M1 = money in circulation + checking accounts + traveler's checks ($3.5 trillion 2017)
  • M2 = M1 + savings accounts + CD's + money market mutual funds ($13 trillion 2017)
  • Here are the charts: http://www.tradingeconomics.com/united-states/money-supply-m1
The U.S. Banking System
  • Fractional reserve banking - Banks are required to keep a small fraction of the deposits in the form of reserves. They can lend out the rest. This leads to a huge expansion of the money supply. Our classroom simulation/game will illustrate this principle.
  • Federal Reserve System - The central bank of the United States.
  • Commercial Banks - These traditionally accepted deposits and made loans to businesses and individuals
  • Savings & Loans - These were historically set up to accept savings deposits and make home loans to people
  • Credit Unions - These are cooperatives, owned by their members/customers
  • Today, all three accept checking and savings deposits and extend a wide variety of loans to their customers
Money and Banking classroom exercise
Objectives: 1) Simulate a society without money, and demonstrate the problems that occur with trade, 2) Create a bank in the 16th Century and demonstrate how it gets started and how it functions, and 3) Simulate a 16th Century bank with "fractional reserve requirements" and demonstrate how the supply of money grows as a result.

Ch. 10 Review Questions
These are hosted in Canvas

Wealth, Greed, and Slavery assignment
Four (4) videos below
wealth, greed, and slavery class_presentation.docx
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Unit 11: Central Banking
Picture
Class preparation
Pre-read chapter 11

Lecture outline
The central bank in the U.S. is called the "Federal Reserve System". It is often just called "The Fed". It is headquartered in Washington D.C. - see picture above. The Federal Reserve was created in 1913 by Congress and President Woodrow Wilson. The National Income Tax was instituted in the same year. They go hand-in-hand. These are two of the most important events in the U.S. in the 20th Century.

Stated purpose of the Federal Reserve System: To regulate the nation's money supply and provide a favorable monetary climate that benefits the whole economy.

Three major centers of decision-making
  1. The Board of Governors - seven (7) members appointed by the U.S. President, who establish the rules & regulations that apply to all banks.
  2. The twelve (12) Federal Reserve District banks who monitor the commercial banks in their regions
  3. The Federal Open Market Committee - twelve (12) members who control the money supply in the United States

How the Fed controls the money supply
  1. By adjusting reserve requirements
  2. Open market operations - the buying and selling of U.S. bonds
  3. Extension of loans to commercial banks. By adjusting the "discount rate", the supply of money can be adjusted
  4. By adjusting the interest rate which the Fed pays commercial banks for excess reserves

The Federal Reserve System is NOT part of the Federal Government. It is a PRIVATE - or public/private - bank. It is called "the bankers' bank". There is a lot of controversy over whether the Federal Reserve should be allowed to create the nation's money, or whether the U.S. Congress should create the nation's money as stipulated in the U.S. Constitution. This controversy is extremely worthwhile to explore and think about, but goes a little beyond the scope of this class.

If you want to read about it, see the attachment below called "Fabian the Goldsmith".

The U.S. Treasury Dept. is a part of the Federal Government. The purpose of the U.S. Treasury is to finance the government. The Treasury issues bonds and bills (known as "Treasuries", T-bills, government bonds, etc) to finance the shortfall between tax receipts and federal spending. In class we will talk about "who owns" the national debt, which is currently about $20 Trillion.

To summarize, the U.S. Treasury borrows money to pay for federal spending. The U.S. government spends about $4 Trillion - but only collects about $3.5 Trillion in taxes - so it must borrow about $0.5 Trillion ($500 Billion) in this manner each year. That is the job of the U.S. Treasury Dept.

​​Classroom Activity
"Central Bank" classroom experiment:
Objectives: Create several banks with "fractional reserve requirements" and demonstrate how the supply of money can be expanded and contracted by adjusting reserve requirements.

Ch. 11 Review Questions
These are hosted in Canvas

Cost of College class presentations
cost_of_college_assignment_2023.docx
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Economics of the Government

Unit 12: Measuring the Wealth of the Nation  (2023 Note: bring in the 'other' material here)
Picture
  • https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
  • https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita
Reading
Ch. 12
​
Summary​
The central question: "Why do some nations prosper, while others do not?"

What nations need to prosper:
  • Physical capital - roads, highways, shipping ports, factories, communication & power grid, etc.
  • Human capital - a workforce that can read & write, is healthy, has a work ethic, can get along with others, etc.
  • Natural resources - water, agriculture, coal, oil, gas, iron ore, timber, fisheries, etc. 

The role of institutions is important:
  1. Political stability
  2. Private property
  3. Competitive markets
  4. Trade
  5. Stable money and prices
  6. Tax code

Gross Domestic Product (GDP) is the most common measure of the nation's economic output.

​GDP = the total dollar value of...
  • all final goods & services (intermediates are not counted, e.g. circuit boards that will be ultimately sold as a computer)
  • produced (mere transfers are not counted, e.g. stocks & bonds, social security, welfare, etc)
  • in a given year
  • within the nation's borders

GDP (Y) has four basic components
  1. Household spending or "consumption" (C) - cars, furniture, refrigerators, gasoline, doctor visits, school tuition, etc.
  2. Business investment (I) - factories, machines, tools, buildings and houses, build-up of inventory, etc.
  3. Government spending (G) - government buildings, salaries, highway construction, court system.... all the expenditures of local, state, and federal government. But doesn't include transfer payments, because a simple transfer of money doesn't produce any goods & services. 
  4. Net exports (NX) = items exported - items imported
​
Therefore we say, Y = C + I + G + NX 

GDP does not account for
  • Household production
  • Underground economy
  • Economic bads (harmful side effects)
  • Quality improvements (modern car vs. a 1970's car)
  • Introduction of new & improved goods (PC vs. typewriter)

​Homework

Economist Thomas Sowell on slavery & racism
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Unit 13: The Business Cycle and Unemployment  (2023 Note: bring in the 'other' material here)
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The unemployment rate

Total U.S. population
  • Subtract: military, in school, in prison, and <16 y/o
  • Subtract: homemakers, discouraged workers, non-participants
  • Equals: Total persons in the "labor force"
  • Subtract: Those actually working
  • Equals: unemployed persons 
  • Unemployed / Total labor force = "Unemployment rate"

​Review these links:
  • U.S. civilian labor force   https://fred.stlouisfed.org/series/CLF16OV 
  • U.S. current population  https://www.census.gov/popclock/ 
  • U.S. unemployment rate  https://fred.stlouisfed.org/series/UNRATE 
Homework
3 questions:  Ch. 20 Study Problems #3, 4, 5. Keep the same numbering/lettering as the book. 
Unit 14: Inflation (2023 Note: bring in the 'other' material here)
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Reading
Ch. 14

​Summary
Inflation
  • A sustained rise in the average price level
  • Measured by Consumer Price Index (CPI)
Losers
  1. Elderly and those on fixed incomes
  2. Lenders - Banks, Savings & Loans, and Credit Unions
  3. Savers - people trying to save money for the future
  4. Consumers - anyone who has to buy items which are constantly going up in price
Winners
  1. Borrowers (including governments)
  2. Certain pension funds
Consumer Price Index (CPI)
  • Uses a base period of 1982-1984 which averages "100"
  • Measures a basket of goods used by the average urban household
  • The CPI is used to determine Cost of Living Adjustments, and in all sorts of contracts and labor agreements
Ch. 14 Review Questions
These are hosted in Canvas
Unit 15: Fiscal Policy (2023 Note: bring in the 'other' material here)
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Reading
Mateer and Coppock, Ch. 28

​Summary
U.S. government budget (taxing and spending)
  • Total U.S. Government spending https://www.usgovernmentspending.com/
  • Total U.S. Government revenue https://www.usgovernmentrevenue.com/  
​
American Government Quiz
This is posted on Canvas

The American Republic

Unit 16: Declaration of Independence
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Reading
You will need to read the Declaration of Independence https://nccs.net/blogs/americas-founding-documents/the-declaration-of-independence 
From the National Archives: https://www.archives.gov/founding-docs/declaration-history 

Lecture outline
  • The Declaration of Independence sets out to justify to the World the separation of the 13 Colonies from Great Britain. It was important to the Rebels to try to win over the other major World powers. The Colonies had already been at war with the Kingdom of Great Britain for more than a year. 
  • The Declaration listed 27 grievances against King George III, asserting natural and legal rights including the right of armed revolution. 
  • The 2nd sentence was made famous by President Lincoln in his Gettysburg Address (1863): "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."
  • The rough draft of the Declaration was written by Thomas Jefferson in about 17 days. Over the next few days, Congress made modifications to it, and shortened it by about 1/4th. 
  • It was completed on July 2nd, and ratified on July 4th, 1776. 

Homework
Declaration of Independence questions, posted on Canvas
Unit 17: U.S. Constitution and the Separation of Powers
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Reading
For this lesson you will need to read the Constitution. It isn't very long... (see link below)
You will also need to read about the "setting" or "historical context" (see link below)

​The U.S. Constitution is here https://constitution.findlaw.com/articles.html
The historical background is here https://www.whitehouse.gov/about-the-white-house/the-constitution/  
An 'explanation' of the Constitution is here ​https://www.britannica.com/topic/Constitution-of-the-United-States-of-America
constitution_of_the_united_states__annotated__7pp_-_findlaw.pdf
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The U.S. Constitution contains two radical ideas:
  1. The central government only has limited, "enumerated" powers. Until this time, a government possessed every conceivable power except those specifically denied to it. The framers of the U.S. Constitution stood that idea on its head by granting the central government only enumerated powers. Anything not specifically enumerated in the Constitution is reserved for the States, or the citizens directly. 
  2. The idea of "separation of powers". The new central government had its powers divided among three branches: executive, legislative, and judicial. This was and is a unique approach. 
  • Executive branch - the President - executes the laws
  • Legislative branch - the Congress - makes the laws
  • Judicial branch - the Courts - interprets the laws
 
  • By contrast, a Parliamentary system (Britain, Canada, etc) combines the executive and legislative branches, and does not give the courts the power of judicial review (important!). In a Parliamentary system, the "Prime Minister" is just the head of all the lesser Ministers (Minister of Defense, Minister of Commerce, Minister of Education, etc), and a Prime Minister must "put together a government" soon after being elected - meaning they need to be able to assemble a majority of all the Parliament members. In the U.S. system, a President answers more directly (in theory) to the voters who put him/her in office. 
Historical Context
The original 13 Colonies were ultimately governed by Great Britain through royal governors charted by the Crown. Americans considered themselves to have all the rights of Englishmen, even though they were separated by the vast Atlantic Ocean. 

One of these rights was that taxes could only be imposed by your representatives in British Parliament (not by the King himself). Americans were outraged when the British Parliament began imposing taxes on them in order to pay for defending them against Indian raids and French incursions (the long & expensive "French and Indian War" had just ended around 1763). Americans had no representation in Parliament, so how could Parliament lawfully impose taxes on them? The British government countered this argument by saying that Americans had "virtual representation" in Parliament.... this was because representatives who were elected by British voters actually represented all Englishmen, no matter where in the far-flung Empire they might be located! 

Revolt came in 1776, with the Declaration of Independence. During the Armed Revolution, the States cooperated with one another through the Continental Congress, a body of delegates from each of the Colonies. The Continental Congress would meet and decide how to conduct the War of Independence, and how to pay for it. 

With General Cornwallis' surrender in 1781, the Articles of Confederation were created to form a loose confederation of "United States". The Articles of Confederation stipulated that each State retained its own sovereignty, freedom, and independence. The United States Congress had the power to make war, but had no power to tax or regulate commerce in any way. 
Predictably, the Articles of Confederation did not work very well. All they did in essence was create a loose confederation of 13 independent nations. The different States gouged each other on trade and tariffs, the rates of exchange between their currencies constantly fluctuated and was almost impossible to track, and no one wanted to pay off the debts incurred to finance the Revolution. It could not continue...

By 1786, representatives from several large States resolved that a "General Convention" be held the following year in Philadelphia to address the problems. 

Thus, the Constitutional Convention took place in the summer of 1787. The delegates set about designing an entirely new charter of government, which was given the name, "U.S. Constitution". 
​Background to the First Amendment: 
The First Amendment guarantees the freedom of speech and religion. 
  • "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
​The 1st Amendment is unique to the U.S. Constitution. No other nation (to my knowledge) has a similar guarantee to its citizens. For example, Canada and the U.K. do not! In Canada, you can go to prison for up to 2 years for publicly "offending" certain groups of people mentioned on a "list". And the Prime Minister of Canada (Trudeau) has just expanded "the list", to the annoyance of many Canadians. 

Important! Notice that the First Amendment:
  • Limits only "Congress". It doesn't limit "citizens" in any way! All it says is, "Congress shall make no law...." 
  • Stops Congress from making laws, it doesn't stop people from making statements... including hateful ones. 
  • Doesn't prevent citizens from saying rude things or offending people. 

The Supreme Court has repeatedly ruled (as recently as 2017) that "hate speech" is legally protected free speech under the First Amendment. In other words, citizens can march down the street with some pretty offensive signage, as long as they are not inciting people to commit a crime. 
  • Carrying a sign that says, "Abortionists are murderers" is probably not wise unless you are looking for a fight, but is protected speech. 
  • Carrying a sign that says, "Everyone should pick up a gun and go shoot an abortion Doctor" is inciting criminal action, and is not protected speech, and you will be arrested. 
  • Carrying a sign that knowingly lies, and falsely states, "Abortion Doctor so-and-so performs illegal abortions" would be defamation, and the Doctor can sue you in court for slander/defamation and you would have to pay damages. 
  • Pointing out the immoral or unethical (or even criminal) behavior of someone, as long as it is true, is not a crime. Again, the First Amendment limits what Congress can do, not what you can do... (just read it again!) 
  • Pointing out the immoral or criminal behavior of a "public figure" (the President, your Congressman, a famous Actor or Actress) is also not criminal speech, even if it's not true. Mocking and ridiculing the President is a time-honored American tradition! Read here...https://www.theatlantic.com/magazine/archive/2013/06/abraham-lincoln-is-an-idiot/309304/ 
As recently as 2017, in Matal vs. Tam, the U.S. Supreme Court affirmed that there is no "hate speech" exception to the First Amendment. 
  • "...the proudest boast of our free speech jurisprudence is that we protect the freedom to express "the thought that we hate". 
  • You can read about it here... https://en.wikipedia.org/wiki/Hate_speech_in_the_United_States
First Amendment - Campus Free Speech assignment
Freedom of Speech on college campuses is a hot issue right now! Some students say "offensive speech" is not "free speech". 
Watch the video below...
​​The following video shows a student being arrested after attempting to limit someone else's freedom of speech. 
​The student was offended by a sign being displayed on campus. 
Listen carefully to the Free Speech argument given by the police officer. 
​Watch...
17._campus_free_speech_assignment_2021.docx
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Unit 18: Bill of Rights and Limits on Government Power
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Reading
You will need to read the Bill of Rights, posted below with notes that correspond to the lecture video. 
Bill of Rights & subsequent Amendments__with lecture notes.docx
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The First Amendment: Case Brief
​
Choose a landmark 1st Amendment case (freedom of speech, religion, and assembly) that interests you, research it, and write a 2-page "brief" on the case, using 11-pt font and 1.15 spacing. Here is a good place to start searching:  https://en.wikipedia.org/wiki/List_of_United_States_Supreme_Court_cases_involving_the_First_Amendment. There are lots and lots of very interesting 1st Amendment cases, covering all sorts of things! Find one that interests you. 

EXEMPLARS:

lukumi_church_v._city_of_hialeah_1993__animal_sacrifice_is_protected_under_1st_amendment_.pdf
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brandenburg_v._ohio_1969__kkk_clansman_speech_protected_under_1st_amendment_.docx
File Size: 13 kb
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united_pentecostal_v._newsom_2020__covid_church_shutdown_a_violation_of_1st_amendment_.docx
File Size: 15 kb
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florida_star_v._bjf_1989__newspaper_can_use_full_name_of_rape_victim_.pdf
File Size: 32 kb
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How to brief a case: 
  1. Title and year of the case, as in: "___________ vs. __________, 2001"​
  2. Facts of the case, as in, "In January, 2001, defendant Witherspoon was participating in a rally in which he was carrying a sign that said, "I Hate Cops", and generally minding his own business; when the Police Chief suddenly rode up on a horse, snatched the sign from his hands, and proceeded to.... (go into all the details... what happened?)" 
  3. Issues or Questions of Law: What laws and/or Constitutional provisions come into play? How does the 1st or 2nd Amendment apply to the case? What is the applicable law? How does it pertain to the case? 
  4. Decision: How did the court decide the case? Who won? Who wrote the decision? Who wrote the "dissent"? Summarize. 
  5. Reasoning: What was the reasoning behind the court's final decision? 
It's not difficult to brief a case. You can find many examples online. 
The Second Amendment: Case Brief
Choose a landmark 2nd Amendment case (right to bear arms), research it, and write a 2-page "brief" on the case, using 11-pt font and 1.15 spacing. Search "Second amendment landmark cases" and you will get many cases to choose from. A very recent landmark 2nd Amendment case is "District of Columbia v. Heller" (self-defense of the home), which would be an excellent example. Another recent case is Caetano v. Massachusetts. (defendant carried around a "stun gun"). 

EXEMPLARS:
u.s._v._hayes__2009__wife_beating_and_firearm_possession_.docx
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calif._rifle_association_v._becerra_2020__high_capacity_magazine_ban_.docx
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peruta_v._sd_county_2016__denial_of_concealed_firearm_permit_.odt
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mcdonald_v._chicago_2010__does_2nd_amendment_apply_to_states_?.pdf
File Size: 70 kb
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The Fourteenth Amendment: Case Brief
Choose a landmark 14th Amendment case (right to privacy, due process, equal protection), research it, and write a 2-page "brief" on the case, using 11-pt font and 1.15 spacing. Landmark 14th Amendment cases would include Roe v. Wade (abortion), Obergefell v. Hodges (same-sex marriage), Brown v. Board of Education (segregation of schools), and Griswold v. Connecticut (created the "right to privacy"). Search "14th amendment landmark cases" and you will get many more. 
Optional assignment: How the Second Amendment Prevents Tyranny
Write a 1-1/2 page summary of the article, "How the second amendment works to prevent tyranny", posted below, using 11-pt font and 1.15 spacing. In your analysis, specifically address: a) what are the arguments?, b) what is a "militia", c) what did Madison say in "Federalist #46"?, d) how would an armed populace protect against tyranny?. 
18._how_the_second_amendment_works_to_prevent_tyranny.pdf
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