Wednesday November 19, 2014Mr. Goblirsch – Economics

OBJECTIVE – Students Will Be Able To – SWBAT: - Analyze poverty rates, causes of poverty, and governments policies to

combat poverty in the U.S.

AGENDA:1) WARM-UP: Economic Profile: Oprah Winfrey2) CONCEPT: Poverty3) Introduce PROBLEM SOLVING ACTIVITY:

– CITY COUNCIL SIMULATION: Facing Economic Challenges

***Workbook Pg. 58 – DUE TOMORROW***

Economic Profile WARM-UP: (Follow the directions below)

***5 minutes***Read the Economic Profile of Oprah Winfrey on P. 344. Answer the questions below. Describe 3 ways in which Oprah has used her position to address the

issue of poverty in America. How are poverty and opportunity related? What effects does widespread

poverty have on the nation’s economy?

Chapter 13

Economic Challenges

Poverty• The poverty threshold

–2012—$23,850 per year for a family of four

–Over 45 million Americans under the poverty line (16%)

The Poor• The poverty rate

– race and ethnic origin• 9% White - 12% Asian• 26% Hispanic - 28% African American

– type of families• Married 6% - 26% Single Parents

– age• 22% Under 18 19-64 - 13% Over 65 –

9%– residence

• inner city residents have x2 poverty rates than average

Causes of Poverty• Unemployment or low wages/limited

work schedule• Lack of education and training• Location

– inner cities• Racial and gender discrimination• Economic shifts

– the loss of decent paying manufacturing jobs

• Shifts in family structure– an increase in single parent families

Income Distribution• 1) The Lorenz Curve

–a curve that shows the changes in income distribution

• 2) The gap between the wealthy and the poor is growing

• 3) The top 1/5 of the population has 75% of the wealth

Antipoverty Programs• 1) Food stamps—transfer in kind

payments• 2) Welfare—transfer payments

– Temporary Aid for Needy Families (TANF)– calls for a shift from welfare to workfare

• 3) Housing subsidies—Section Eight• 4) Social service programs

– foster care, employment assistance, day care, job training, family planning

• 5) Tax credits– tax breaks for low income families

• 6) Enterprise zones– giving tax breaks to companies that locate in

impoverished areas

PROBLEM SOLVING ACTIVITY: Facing Economic Challenges

• 5 Members per Group• Group members are politicians on the City Council

ISSUE:• Your city is currently struggling with 15% unemployment rate• Your city is also currently struggling with a 35% poverty rate

TASK:• Your job is to create a presentation of a proposal that will address the

high poverty and unemployment rates, and help boost the economy in your city

– City name, population, characteristics, etc.– Plan Statement– New Programs/Developments instituted– How your plan/programs will lower unemployment– How your plan/programs will alleviate poverty– Conclusion – Why should the city adopt your plan?

***Presen

tations w

ill be

Tues. &

Wed

. NEXT

WEEK***