Getting to know you, learning about the syllabus, defining the word economics, identifying a strong economy, a weak economy, and how each of us fits in the economy.
Money moves in a system called an economy
Each economy has 4 basic parts:
1- workers
2- businesses
3- banks
4- governments
In an economy people, governments, businesses, and banks work together to meet people’s wants and needs.
Here is another picture of the economy:
Every time one person pays money to get his needs met, like filling up the gas tank or getting a haircut, it causes the economy to move. The gas station employees earn money, and the hair stylist earns money, and then they can use that money to get their needs met like buy food or pay their rent or mortgage...and hopefully they can put some money into their savings account- money for a rainy day.
How have you helped the economy move?
Let’s draw our own pictures to show the relationship between businesses, workers, banks, and government. Start with yourself: Where did you spend money. What happened to that money after you spent it?
Your teacher will go first as an example.
What is a strong economy?
An economy gets better or worse depending on the decisions of families, workers, businesses, banks, and the government.
When the economy is good, there are plenty of jobs.
When there are more jobs than people, wages go up. When wages go up, it is easier for families to pay their bills and they have more money to spend or save.
When people spend more money, it means businesses sell more things, and businesses make more money. With more money they can hire more workers. This is a description of a strong or vibrant economy. A strong economy is good for everyone.
What is a weak economy?
The economy is not always growing. Sometimes, it slows down. When the economy slows down, it means people have less money. They spend less money. They do not have money to spend on extras. Maybe they stop buying new clothes or stop going out to eat.
When these businesses (department stores and restaurants) sell fewer products, they have less money to pay their bills. Then they have to lay off workers or reduce workers’ hours or reduce their pay. Workers then have less money to pay their bills. They shop less too. This is a description of a weak economy. If it goes on long enough, it is called a recession or a depression. This is bad for you and your family.
The Great Depression lasted from 1929-1939.
The economy is a moving system, which moves because of our wants and needs and our desire to meet the wants and needs of others.
Where do I fit in? … Goods and Services
People make money in the economy by working with Goods - things like fish, computers, and paper, by providing Services, like taking care of a sick person or grooming someone’s dog, and by working with information, like designing computer networks or writing the news.
A good is a thing you can touch. A service is when you pay people to do something for you. Do the following jobs work with goods or provide services?
1- Dentist 2- Teacher 3- Dog groomer 4- Farmer
5- Cashier 6- Home Depot 7- Burger King 8- Hair stylist
How you contribute to the economy and to society is up to you.
Most people spend a large part of their lives at work, so it is best if you find work that makes you feel purposeful and that you like. We will talk about work later.
Talk about it
Do you have any idea how you will participate in the economy?
Producers and Consumers
No matter what a person’s job is, we are all producers and consumers. When we buy things, we are known as consumers. When we produce things, we are known as producers. We are all producers when we work and consumers when we spend.
If everyone who tries hard can get their needs met in an honest way, the economy is working. If people cannot get their needs met no matter how hard they work, the economy is not working.
Video
Let’s watch a video to find out about the history of money. How did people used to get their needs met?
Let’s write what we learn.
Homework:
1- Read about Ferndale and answer the questions.
Ferndale, WA
A Chamber of Commerce is a group of people who help businesses grow in a town or city and make life better for everyone in the community. Here is how the Ferndale Chamber of Commerce describes Ferndale:
“Welcome to Ferndale, WA, one of the fastest growing cities in the Northwest (ranking 24th out of 281 Washington cities in growth from 2010 – 2016 and still growing)! With a population of 14,700 friendly folks (30,000 including unincorporated Ferndale), Ferndale is the best of what the Pacific Northwest has to offer.
Located almost equally between Seattle, WA and Vancouver, BC, we boast fishing, hiking trails, boating, camping, hunting, skiing, golfing, historical parks and so much more and that’s just within minutes of our front door.
We have great schools, affordable housing, commercial land for your business, and a beautiful Historic downtown.
Unlike its neighbors, Ferndale began as a timber and dairy town and holds strong to its agricultural roots. But today is considered a more industrial or manufacturing city. With strong economic growth, small town charm, and stunning views of Mt. Baker and the San Juan Islands, it’s one of the most desirable cities to live in in Whatcom County and Washington State.”
Good things
What are 4 positive things the Chamber of Commerce says about Ferndale?
1. ______________________________________________________
2. ______________________________________________________
3. ______________________________________________________
4. ______________________________________________________
One thing the Chamber of Commerce said about Ferndale is not true. Can you find it? If not, let someone else see if they can.
Untruth: _____________________________________________
Fact: ________________________________________________
List 10 jobs people have in Ferndale, or in the town near you
Write down if they are working with goods or providing a service. I’ll do the first 2 for you… Then you only have 8 more to go!
|
Job |
Working with Goods |
Providing a Service |
|
1 Police officer |
X |
|
|
2 Barista at Starbucks |
X |
|
|
3 |
||
|
4 |
||
|
5 |
||
|
6 |
||
|
7 |
||
|
8 |
||
|
9 |
||
|
10 |
Word search- Find the words we used in lesson 1:
producer consumer banks workers
business government need good
service barter economy movement
Watch the videos-
1- Goods and services
2- Consumers and producers