Economic Empowerment

Economic Security &

Preparing for the Future

The Canadian Economy Today

Needs and Wants that can be met by money. (cars, housing, food, vacations)

On the news: New Company Hiring• Rising cost of fuel, groceries, housing

2 Types of Economic Systems

Individuals should be free to become as wealthy as they can be.

1. Capitalism: goods and services people need and want are produced by private companies (not the govt). The main goal of the companies are to make money.

Canada is based on capitalism though we have government programs to make sure people get health care.

2. Socialism: is a political and economic system in which most forms of economically valuable property and resources are owned or controlled by the public or the state.

Capitalism

Individual freedom is most important

Individuals produce goods & services

How wealthy you are determines how you meet your needs

Competition creates wealth and improves society

Socialism The group is more

important than the individual

The government produces goods & services

Everyone should receive enough money to meet their needs

Cooperation creates wealth and improves society

Workers and Employers

The more people buy, the more goods and services are needed.

This creates more jobs, which mean more people have money to spend.

New terms for Chapter 3

Income Expenses Poverty Poverty cycle Quality of life Standard of living Personal capital

Understanding poverty (p.50-53)

Expenses are greater than your income

Expenses are equal to your income Your income is more than your

expenses

PovertyGetting by

Getting ahead

What is poverty?

There are many way to define poverty. If you can’t meet your basic needs with

the money you have, that is poverty. Poverty can also mean you have a lower

standard of living than most of society. Standard of living is how much buying

power your family has – in other words, how much stuff can you afford?

What about quality of life?

Ever hear the old saying that money can’t buy happiness?

Quality of life includes all the other things we need and want that money can’t buy.

How can we measure quality of life?

Why do we have poverty?

Why do we have poverty?

The Poverty Cycle The poverty cycle means the same

things keep happening over and over again.

When you reach the point where you can’t meet your basic needs, it is hard to get what you need to improve your life.

Example: A factory closes and people lose their jobs. Some people might get new jobs, but others may not and get stuck in the cycle.

Building Personal Capital (p. 54-55)

Remember, capital is money or things that have a value.

Personal capital is anything you have that can help you improve you economics. It can be savings in the bank, property, skills or a willingness to work hard.

When you have extra income, that becomes personal capital.

Personal Capital

Owning a home

A house is usually a family’s biggest capital investment.

A family makes a down payment – they pay a small part of the cost of the house – and they borrow the rest from the bank.

The borrowed money is called a mortgage.

The family owns part of the house and the bank owns the rest.

Owning a home

Each month the family makes a mortgage payment (so they own a little more) and after 20 or more years they own 100% of the house.

The house becomes capital because it can be sold for money.

According to the most recent statistics, about 68% of Canadian families own a home.

Breaking the poverty cycle

If you can’t meet your needs, how do you escape the poverty cycle?

One of the best ways is more education or training to improve job skills. You can get loans or scholarships to help pay for your education if your grades are good.

Find Out!

Homework: Over the next few days locate 5 to 10 examples of news stories about economic issues.

Either cut it out, print it off or write down the following information to fill in the chart.

We will be completing this activity on Thursday!!

Chp. 4 - Preparing for the Future

Inquiry focus:• What can you do now to help yourself

prepare to enter the world of work?

• In Chapter 4, we’ll talk about the different kinds of jobs that will be in high demand in the future and the different sectors of the Canadian economy.

New terms for Chapter 4 Sector Primary Secondary Tertiary Quaternary

Trend Forecast Social trends Demographics

Kinds of jobs (p. 61-64)

Economists are people who study economics, or how we get and use our money.

These “money scientists” organize the economy into four different sectors or areas to study. These sectors are: primary, secondary, tertiary, and quaternary.

Primary sector

This sector deals with how we use our natural resources.

Examples would be farming, fishing, forestry and mining.

Even though this is an old sector, new technology is being used all the time.

Modern farming

Secondary sector

This sector deals with construction and manufacturing.

Raw materials are turned into useful products.

One company makes a product and sells it to another company who use it to make things. (ex: steel)

Tertiary sector

People in this sector provide services to others such as bus drivers and teachers.

This sector includes services provided by utility companies such as power, telephone, cable and water.

Quaternary sector

This sector deals with ideas and information.

Jobs in this area would include lab research, computer programming and information technology.

They learn how to create, store and send data.

Diversified economies

When an economic system has a good balance of jobs in all four sectors, it has a diversified economy.

This doesn’t mean an equal number of jobs in all sectors. Most jobs these days are in the tertiary and quaternary sectors.

There are fewer jobs in the secondary and primary sectors.

Think it Through

Complete the activity on Page 64. Do parts A, B, and C. Pass it in for assessment when you

are finished. If you need help, look at the How to…

on Page 65-66 before you ask the teacher.

The Global View (p. 67-71)

Our economy is now considered global. That means that what happens in one country can affect many other countries.• Example: the war in the Middle East impacts

world oil prices and that impacts how much we pay to put gas in our cars.

Effects of a Global Economy

Canada’s economy depends on trade with other countries.

Our main trading partner is the United States.

Global trade means we have a large market for our products, but it also means that we don’t totally control our own economy because it depends on others.

Effects of a Global Economy

Global trade also affects politics.

Countries must stay on good terms with their trading partners.

Governments may disagree about a political issue but may keep quiet about it so that trading relations aren’t affected.

Following the Trend

Most countries are trying to develop a diversified economy. First they industrialize, then they diversify.

Look at the map on Pages 68-69 and study the legend.

Complete the Think it Through on Page 69. Pass in your work when it is done for assessment.

Forecasting the Future

Forecast means to look at all the information and predict what will happen next.

Experts make these forecasts by using social trends and demographics.

Social trends

Social trends are important ideas in society that shape the way people do things.• Example: Many people are

being encouraged to use alternate energy sources such as solar or wind power instead of oil and gas to reduce pollution. If more people start to use wind and solar, this would create a social trend.

Demographics

Demographics are statistics about a population. This would include information on:• Number of people in an age group• Number of males and females• Whether people are single or married• Where people live (city or country)

These stats are analyzed to find trends.

Demographics

Economists study these trends to see how they might affect the economy.• Example: What might the effect of

having a very old population be on a country’s economy?

• Look at the diagram on Pg. 71. Complete the Think it Through on Pg. 71 with a partner and pass it in for assessment.

The end of Unit 2

Guess what comes next …TEST on Unit 2 – Oct. 22