Good Day!

DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 01/11/10, Topic: Sustaining Capitalism2) On the next line, write “Opener #3” and then:

1) Plot your mood, reflect in 1 sent.2) Respond to the opener by writing at least 2 sentences about:Your opinions/thoughts OR/AND

Questions sparked by the clip OR/AND

Summary of the clip OR/AND

Other things going on in the news.Announcements: NoneIntro Music: Untitled

Agenda1) Trade offs/Opp Cost Review2) Sustaining Capitalism3) Incentives

End Goal, you will be able to…1) How do you create a capitlist economy?

Reminder1) Find & complete your 4 news pods

Reminder1) Find & complete your 4 news pods(new source: Marketplace, NOT Newshour)2) Using checks blocks3) Last bank training and book reports are brunch, lunch, after school

Work #3a, Title “Trade Offs + Opp Cost”1) There’s been 10 deaths at this unmarked intersection, with your partner, decide which is the right solution for this hypothetical (include their name at the end):a) Stop Sign, cost of $500 (7 deaths)b) Red Light, cost of $5000 (3 deaths)c) Underground Tunnel, cost of $1 million (0 deaths)2) Which has the least opportunity cost? (which has the least expensive trade offs)

5 Reading/Film Qs Come From These Work SectionsTime Bookmark: 00:00

Why is greed bad?

Notes #3a, Title: “Free Market Notes” Review: Capitalism/Free Enterprise/Market EconomyPrivate individuals are free to decide what to produce how to

produce it, and who gets to keep it. 1) 4 Things for a Healthy Market: a) Private property rights (including intellectual) GOV ROLE: Police + Courts b) Freedom to spend (buy) + make (start biz)

money how you want GOV ROLE: Limited gov + anti-trust protection c) Freedom to exchange goods/services

GOV ROLE: Reliable roads, stable money, accurate measures, fraud protection

d) Freedom to keep your profits GOV ROLE: Reasonable tax rates

a) Private property rights (including intellectual) GOV ROLE: Police + Courts

b) Freedom to spend (buy) + make (start biz) money how you want

GOV ROLE: Limited gov + anti-trust protection

c) Freedom to exchange goods/servicesGOV ROLE: Reliable roads, stable money, accurate measures, fraud protection

d) Freedom to keep your profits GOV ROLE: Reasonable tax rates

Notes #3a, Title: “Free Market Notes” 2) Deregulate: Reduce government rules

overseeing a business (can lead to market failure)

3) Privatizations: Taking something run by the gov, and make it private (competition+profit)

Work #3a, Title “Video: Greed”

1) Copy Source Title: John Stossell

2…) Discuss questions on the board with a partner. Summarize your discussion (include their name at the end). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work SectionsTime Bookmark: 00:00

Contest Rules:1) No stealing money2) No touching anyone3) No doing anything dangerous

Notes #3b, Title: “Behavior Economics” 4) Incentives: Pressures used to elicit a behaviora) 3 Incentive Types:

i) Economic: Financial Pressureii) Social: Peer Pressureiii) Moral: Self Pressure

b) Perverse Incentive: Pressures that lead ppl to do the opposite of what you intended.

i) Economic: Financial Pressure

ii) Social: Peer Pressure

iii) Moral: Self Pressure

Humans are more driven by incentives then rulesLets assume that you’re a lawyer making $100/hr.Driving illegally in carpool saves you 1 hrs/day.You get ticketed $300 on average once a month. What might some people do in this scenario?

Is offering some type of gas tax credit to relieve some of the cost of gas a perverse incentive?

Is giving a car company that made bad cars money creating a perverse incentive?

Is giving financial firms money that made investments in housing a perverse incentive?

Work #3c, Title “Incentives”Ask your partner (include their name):1) Which incentive is most powerful over society?2) Which incentive is most powerful over yourself?

Incentives: Which is more powerful?1) Financial IncentivesCan’t pay everyone for everything2) Social IncentivesPeople aren’t always watching3) Moral IncentivesAt times the weakest, but also the strongest (ppl die for what the believe in)

Work #3d, Title “Lit: Incentive Readings”

1) Copy Source Title: Freakonomics + NudgeRead, and then respond to:

2) What problem was they were facing in Freakonomics?3) What was the results of their solution?4) What is the concept of “Nudge”?5) What were some nudges suggested you think are good ideas? (Note: Nudge is 1 of Obama’s fav)

Bonus Q 4) Based on the ideas of Freakonomics + Nudge, is there something you see in your world or the wider world that can be done better?

5 Reading/Film Qs Come From These Work Sections

Work #, “Initial Assembly Bills”Before the governor (Mr Chiang) signs the

bills, he wants the voters input.1) How capitalist, socialist, or communist

are the current bills that are proposed? 2) Would you support or be against the

real CA’s legislature, if it wrote laws with the same intents as conveyed in the bills before you?

3) What do you predict to be the long term pros/cons of this legislation?

4) What changes do you think should be made to the bills?

Ways to Make Chiang Money1) Better job2) Spend less3) Make $ on stock market (nx week)4) Sell “legal” things to classmates (Fri: marketplace, study notes, BUT you cannot sell homework/projects.

Can I borrow money:Eventually, the banks will loan money (desk cost about 20x rent)

Homework: 1) Study today’s notes + work sections

for a possible workbook quiz.2) Pick and listen to your 4 news

podcast by next Monday.

Workbook Check: If your name is called, drop off your workbook with Mr. Chiang (if requested, points lost if your workbook is not turned in)