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Economics & U.S. Government

Syllabus and Class Materials

Picture
  • An introduction to Economics, based on the concepts of free enterprise and limited constitutional government. U.S. Government is integrated throughout the course, and we will be analyzing the Declaration of Independence, Constitution, and Bill of Rights as founding documents.
  • The required textbook is shown above: OpenStax Principles of Economics, 3rd Ed. (orange cover shown). This book is also available as a free download.
  • The course is 100% online (via live Zoom webinars). 
  • You will need access to a relatively modern computer with internet connection. A computer less than 5 years old should suffice.  You will need a webcam and mike to participate in the class.   
  • You'll be turning in your homework on Canvas. 
1: Introduction
Reading
Ch. 1 Welcome to Economics

Summary
Economics is all about trade-offs, just like life. We have unlimited wants, but limited resources. You don't get everything you want. The same is true for a Business or an entire Country!

Types of economies:
  • Command economy: the government decides what to produce and how much to charge
  • Market economy:  private enterprises produce things based on supply and demand
Intro_to_economics_ppt_slides.pptx
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0._spring_vacation_budget_exercise.docx
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2: Choice and Scarcity
​Reading
Ch. 2

Topics
  • Opportunity Costs
  • ​Production Possibilities Curve
  • ​Begin discussing U.S. Budget
ch._2_choice_and_scarcity_thought_questions.docx
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United_Motors_production possibilities curve.ppt
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Apple
Apple Computer, founded by Steve Jobs, is a classic example of the free market delivering "choice" to the consumer. 
  • In 1984, Apple introduced the MacIntosh personal computer. The Mac was the first to use a "mouse" and a "windows" interface. This brought the personal computer to the average person. 
  • In 2007, Apple introduced the iPhone. The iPhone was a revolutionary product from Apple and it changed the way smart phones worked. ​
Thought question: If consumers were persuaded by Chick-fil-A to eat more chicken and less beef, would the cattle population increase or decrease short-term? What about long-term? 
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ch._2_united_motors_ppc_student_example.pdf
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3: Demand and Supply
ch._3_-_demand_lecture_notes.ppt
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ch._3_-_supply___prices_lecture_notes.ppt
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Reading
Ch. 3 Demand and Supply

Topics
  • Supply & Demand
  • Price ceilings and price floors
ch._3_usa_budget_presentation_student_example.docx
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ch._3_graphing_probs_3.53-3.57_student_example.pdf
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4: Labor and Financial Markets
Reading
Ch. 4 Labor and Financial Markets

Topics
  • Salaries
  • Minimum wage
  • Unions
  • A.I. in the workplace
ch._4_labor___finl_markets_lecture.docx
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Ch. 4 and 5 lead us to a discussion of Comparative Government
In the coming months we'll be doing various assignments on Dictators, Kings, Capitalism, and Communism. 
  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) = Communism/Marxism is "Collectivization". Private property is evil. Businesses and family farms are confiscated at gunpoint. Marxism = revolution and class struggle. The bad guys are those who own property and/or have capital. These are known as the 'Bourgeoisie'.  In Marxist countries, a small group at the top make the decisions. This is known as "central planning". This leads to shortages of everything. 
  4. Monarchy = In a true monarchy, the King controls everything.  If you want to start a private commercial enterprise, you need approval from the King, who naturally wants of piece of the action. A monarchy doesn't favor private, independent corporations. Any private business group is 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 Mullahs or Priests are in charge. Economic freedom isn't really part of the deal. In Middle Eastern oil-rich countries, the wealth is concentrated at the top.
ch._4_review_qs_student_example.docx
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5: Elasticity
Reading
Ch. 5 Elasticity

Topics
  • Elastic: the quantity demanded (or supplied) depends a great deal on the price. 
  • Inelastic: the quantity demanded (or supplied) doesn't depend as much on the price  
  • Pricing strategies 
5._elasticity_lecture_notes.docx
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0._buying_a_car_assignment.docx
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ch._5_review_qs_student_example.docx
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7: Production and Business Costs
Reading
Ch. 7 Production, Costs, and Industry Structure

Topics
  • Income Statement for a business
  • Factors of Production
  • Variable vs. Fixed Costs
  • Forms of Business Ownership
ch._7_-_production_and_business_costs_lecture.docx
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Class lecture slides - Forms of Business Ownership
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Classically, there are 3 forms of setting up a business
  1. Sole Proprietorship - You are the sole owner
  2. Partnership - Has 2 or more partners
  3. Corporation - Has many owners, called shareholders 
Handouts
0._chocolate_jalapeno_income_statement.docx
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The Fortune 500 companies list
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research_a_corporation_assignment_2023.docx
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ch._7_review_questions_student_example.docx
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0._chocolate_jalapeno_income_statement_student_example.docx
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8: Perfect Competition
​Reading
Ch. 8 Perfect Competition
ch._8_perfect_competition_lecture_notes.docx
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Communism assignment
We continue our discussion of "Comparative Government". In this case study we will look at Communism as it existed in the Soviet Union. 
The video is on YouTube and Rumble. Watch the first 32 minutes and answer the questions in the handout. 
0._communism_assignment.docx
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0._communism_assignment_stud_example.docx
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9: Monopoly
Reading
Ch. 9 Monopolies
ch._9_monopolies_lecture_notes.docx
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Capitalism, Profits, and Justice assgmt
0._capitalism_profits_and_justice_assignment.docx
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11: Antitrust Legislation
Reading
Ch. 11 Monopolies and Antitrust Legislation​

Summary
Types of Competition
  • Perfect competition
  • Imperfect competition
  • Oligopoly
  • Monopoly

Antitrust Legislation
  • Sherman Antitrust Act of 1890
  • Clayton Act of 1914​
Lecture Slides: Market Structure & Competition
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ch._11_markets_and_competition_assignment.docx
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iphone_1st_generation_patent.pdf
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14: Labor Markets
Reading
Ch. 14 Labor Markets
ch._14_labor_markets_lecture_notes.docx
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ch._14_labor_markets_assignment.docx
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"From Raw Materials to Revenue" class presentation
from_raw_materials_to_revenue_presentation.docx
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Dictators, Monarchs, and Presidents
We continue our discussion of "Comparative Government". In this case study we will look at 20th Century Dictators, Kings, and Presidents. The video is on YouTube and Rumble. Watch 18 minutes of the video and answer the questions in the handout. 
0._dictators_monarchs_and_presidents.docx
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17: Financial Markets
​Reading
Ch. 17 Financial Markets
​
Topics
Stocks & Bonds and how they work
ch._17_financial_markets_lecture_part_1_stocks.docx
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ch._17_financial_markets_lecture_part_2_bonds.docx
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Wealth, Greed, and Slavery assignment
Analyze 4 short videos by Nobel Prize economist Milton Friedman
0._wealth_greed_and_slavery.docx
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0._wealth_greed_slavery_student_example.pdf
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ch._17_financial_markets_problems_36-40_student_example.pdf
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Midterm Review
19 & 20: Macroeconomics and Growth
Helpful links
  • https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
  • https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita
  • U.S. GDP www.macrotrends.net/global-metrics/countries/usa/united-states/gdp-gross-domestic-product
  • Consumer Price Index (CPI) https://tradingeconomics.com/united-states/consumer-price-index-cpi
  • U.S. Exports & Imports by category https://tradingeconomics.com/united-states/imports-by-category 
  • U.S. Trade Balance charts www.macrotrends.net/global-metrics/countries/usa/united-states/trade-balance-deficit 
  • All kinds of U.S. economics & labor charts  datacommons.org U.S. Economics and Labor charts
Wealth_of_the_Nations exercise
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0._cost_of_college_assignment_2024.docx
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0._economist_thomas_sowell_on_slavery_and_racism.docx
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ch._19_problems_28-33_student_example.pdf
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21: Unemployment
Reading
Ch. 21

Topics
  • The business cycle
  • 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 
  • Charts  datacommons.org U.S. Economics and Labor charts
Politicians use the economy as a weapon. This is a classic line from then-candidate Ronald Reagan. But did President Carter cause the 1979-1981 recession? Discuss...
ch._21_unemployment_problems_1-7_45_student_example.pdf
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22: Inflation 
Picture
Reading
Ch. 22

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
14._inflation_lecture_notes.docx
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0._understanding_inflation_questions.docx
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ch._22_inflation_questions_33-37_student_example.pdf
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27: Money and Banking
https://templates.office.com/en-us/simple-loan-calculator-and-amortization-table-tm16400462
Class preparation
Read Ch. 27

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​
ch._27_money_and_banking_questions.docx
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30: Government Budgets
Reading
Ch. 30
www.usgovernmentrevenue.com/year_revenue_2025USbn_27bs1n_103040#usgs302U.S. Government Budget
You should have a general idea of the government's budget (taxing and spending). 
  • Total U.S. Goverment spending https://www.usgovernmentspending.com/
  • Spending breakdown www.usgovernmentspending.com/federal_budget_detail_fy24rs12012n_1li1n
  • Total U.S. Government revenue https://www.usgovernmentrevenue.com/  
Taxation
In the U.S., we have a progressive income tax. Look carefully below at the rates.
Picture

Our Founding Documents

31:  Declaration of Independence
Picture
Reading
You will need to read the Declaration of Independence 
The "Law of Nature and Nature's God" was a common expression used by Montesquieu, Blackstone, Locke, and Sidney   

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 
  • U.S. Citizenship Test 
  • Revolutionary War Battles class presentation 
  • "Communist Goals" presentation
communist_goals_-_1963_congressional_record.pdf
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32. U.S. Constitution and the Separation of Powers
Picture
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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17._constitution_lecture_notes.docx
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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". 
33. Bill of Rights and Limits on Government Power
Picture
Reading
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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1st Amendment Case Brief
​
Choose a landmark 1st Amendment case (freedom of speech, press, religion, and assembly) that interests you, research it, and write a 1-1/2 page "brief" of the case IN YOUR OWN HANDWRITING.   There are lots and lots of very interesting 1st Amendment cases!  https://en.wikipedia.org/wiki/List_of_United_States_Supreme_Court_cases_involving_the_First_Amendment. 

STUDENT EXAMPLES:
Study these but don't choose one of them
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
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united_pentecostal_v._newsom_2020__covid_church_shutdown_a_violation_of_1st_amendment_.docx
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florida_star_v._bjf_1989__newspaper_can_use_full_name_of_rape_victim_.pdf
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carson_v._makin_2021_government_can_fund_religious_schools.pdf
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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. 
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". 
ch._101_campus_free_speech_assignment_2026.docx
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​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
2nd Amendment Case Brief
Choose a landmark 2nd Amendment case (right to bear arms) that interests you, research it, and write a 1-1/2 page "brief" of the case IN YOUR OWN HANDWRITING.  

STUDENT EXAMPLES:
Study these but don't choose one of them
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
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district_of_columbia_v._heller_2008_total_ban_on_handguns not allowed
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14th Amendment Case Brief
Choose a landmark 14th Amendment case (right to privacy, due process, equal protection), research it, and write a 1-1/2 page "brief" of the case IN YOUR OWN HANDWRITING.  Landmark 14th Amendment cases would include Dobbs v. Jackson Women's Health Organization (overturned Roe v. Wade), Roe v. Wade (made abortion a 'fundamental right' until 2022), 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. 
2023 students_for_fair_admissions_v_harvard_14th_amendment (Universities can't use Race in admissions)
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Final Exam
2026: Please turn in your completed final via email
Economics & U.S. Govt Final Exam 2026.pdf
File Size: 764 kb
File Type: pdf
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econonics_u.s._govt_final_exam_REVIEW NOTES 2026.docx
File Size: 7814 kb
File Type: docx
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