Wednesday November 19, 2014 Mr. 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 Winfrey 2)CONCEPT: Poverty 3)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 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 % 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 CouncilISSUE: Your city is currently struggling with 15% unemployment rate Your city is also currently struggling with a 35% poverty rateTASK: 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? ***Presentations will be Tues. & Wed. NEXT WEEK***