Unit 13 – Georgia Produces; Georgia’s Trade; Starting a Business; Sources of State Revenue; Personal Money Management 1

 Colonial trade was with Native Americans and shipping goods back to Europe.  Antebellum trade involved wagons, river boats, steam ships and trains. 2

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 Free Trade is trade between countries that is unrestricted by tariffs. 4

 Poultry  Cotton  Tobacco Leaf  Peanuts  Peanut Products  GOLD KIST – nation’s 2 nd largest poultry company is in GA. 5

 Soft drinks, carpet, transportation equipment, & forest products 6

 Coca-Cola – most recognized GA product  Shaw Industries – largest manufacture of carpet in the world 7

 Lockheed-Martin in Marietta makes C-130 aircraft for global customers  Georgia-Pacific: Worldwide supplier of forest products: pulp, paper, & building products 8

 Both help move Georgians and cargo across the globe every day.  Shipyard at Savannah & Brunswick also play a role in international shipping. 9

 Delta Airlines: Atlanta based air carrier.  Started in Atlanta in the 1950’s. 10

 United Parcel Service (UPS): Largest single transportation network in the world. 11

 Entrepreneur: A person who takes a risk to produce goods and services in search of a profit. 12

 A profit is a company's earnings after all expense are paid.  Profit provides incentive for entrepreneurs. 13

 Entrepreneurs invest personal resources and risks losing those resources if the business fails.  They share the risk when borrowing from banks or a wealthy investor.  Entrepreneurs are good for the economy. 14

 Delta Airlines  Coca-Cola  Georgia-Pacific  Home Depot 15

SALES TAX  “Consumption Tax”  A sales tax which is placed on things that people buy and consume.  Cars, groceries, clothes, etc. 16

FEDERAL GRANTS  U.S. Government gives states federal grants to help fund education or build interstate highways. 17

PERSONAL INCOME TAX  States and the U.S. Government tax the earnings of individual citizens & money they earn from investments. 18

PROPERTY TAXES  Private homes, land, and business property are taxed according to their value.  Major source of revenue for the local governments. 19

 Revenue is used to pay for state & local programs like education, roads, public transportation, police & fire protection.  Citizens pay taxes… citizens use services. 20

 GA Constitution says that the State must operate under an annual budget.  That budget details how much money is spent where. 21

 The General Assembly must pass an “appropriation” which permits the spending from the budget.  Many levels of the State Government participate in planning the budget. 22

 Process begins in Spring  Head of each agency decides how much money they need during the year.  In the Fall, the Office of Planning & Budget looks at the requests and decides what can be cut.  In January the Governor’s proposed budget is presented to the General Assembly.  State law requires that the budget be balanced; meaning the state cannot go into debt – EVER. 23

 Money is the medium of exchange to buy goods and services.  Your income provides you with money to spend on whatever you choose. 24

 People use CREDIT to buy something now and pay for it later.  When you use CREDIT, you have to pay the amount you borrowed plus and additional amount of interest. 25

 Banks make money from interest payments – interest is a fee paid for the use of someone else’s money. 26

 Putting money in a bank or credit union can make you EARN interest.  Saving money allows you to increase your money by INVESTING. 27

 Ways to Invest Your Money:  Stocks and Bonds  Real Estate  Natural Resources  Collectibles  Business (your own or someone else’s) 28

 The Federal Deposit Insurance Corporation (FDIC) was created in the New Deal by FDR in the Great Depression.  The FDIC provides insurance for Americans who have money in banks. 29

 The FDIC insures banks in case of bank failure.  If a bank fails, $100,000 of your money is insured by the Federal Government.  Since the FDIC was created, no American has lost money to a bank due to bank failure. 30