The Economy: The Basics
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Transcript of The Economy: The Basics
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The Economy:The Basics
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Are YOU a part of the economy?
• Do you have a job?• Do you spend money?• Do you own any natural resources?• Do you own any stocks or other investments?• Do you have a bank account?
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Key ingredients:• Resources
– Natural resources• Capital
– Investment money. Not only includes “Wall Street” (Stock Market) but also your money.
• Labor– Workers
• “Agents”– The entities that create production, exchange, and
consumption of goods & services
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The 4 Main Sectors of the EconomyRaw Materials Manufacturing
Services Research & Development
NOTE: All of these need capital to get started and/or expand
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There are two other sectors which are “owners” of the other four:
Private Sector Public Sector
Privately run businesses & investment firms
Government run & taxpayer funded
If you have a job, where do you fit?
Where does Mr. Hartford fit?
Your parents?
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U.S. Economy
• It is based on capitalism• In a capitalist system, the means of production
& distribution are privately owned
• Most people consider the U.S. capitalist• However, due to its large public sector, we are
technically a mixed economy (some socialist aspects)
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Let’s go back to the beginning…:
• Resources• Capital• Labor• “Agents”
What happens if any of these key economic factors falter?
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How about the 4 main sectors of the economy? What if any of these falter?
Raw Materials Manufacturing Services Research & Development
What if?…
Capital InvestorsWhat if?…
What if?…
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• Based on what you learned today, how would you suggest we improve the United States economy?
• Do you think the politicians have made the right decisions?
• What recommendations would you have for our leaders to improve our economy?