"We Are All Socialists Now" - or are we? Analyzing Obama's stimulus plan

Actively read the Newsweek article entitled “We are all Socialists Now”

http://www.newsweek.com/id/183663/output/print, from Newsweek Magazine.  

You may also want to use the following timeline for the assignment: (http://www.nydailynews.com/money/useconomytimeline/)

Follow the directions for ONE of the following assessments:

A) Blog:
Summarize the article and at least one additional resource linked to it on Newsweek.com. Discuss the positive and negative aspects of Obama’s economic stimulus plan. To what extent is the government responsible for recovering the economy in a time of recession/decline? In your opinion, how does this stimulus package compare to Washinton’s response to other recessions in US history? Will the stimulus plan work to recover the national economic crisis? Provide evidence to support your response.

OR 

B) Create a Comic Strip/ Visual Timeline/ Power Point/ Poster:
Create a visual comparison highlighting the details of Obama’s stimulus plan to at least TWO other recession recovery programs in US History. Be sure to reflect that you actively read these materials and researched outside sources to include information BEYOND what I provided for you.

Due Tuesday, September 29 before class. E-mail me if you have questions: bridgettefranciscsi@gmail.com)

A History of the US Economy: Analyzing "trade-offs" that shape the national economy

The Three Main Economic Questions :

• What goods and services should be produced?

• How should these goods and services be produced?
  

• For whom should these goods and services be produced and distributed?
  

• How will the system accommodate for growth and change? 
  

Trade-off
Every time a nation, group or individual faces the ECONOMIC QUESTIONS, a choice is made that has a direct impact on individuals and the potential for a trickle-down economic impact (on industry, society, the economy as a whole, etc.)When choices are made (collectively or by an individual) to accept having less of one thing in order to get more of something else, the results are called trade-offs. For example, when one is allocating (limited) funds, the trade-off usually involves reduced spending for some purposes in order to be able to spend more for other more urgent purposes. However, the concept does not apply only (or even primarily) to decisions involving money. A student faced with the choice of spending Saturday studying for a Political Economy exam or shopping at The Mall makes a trade-off of shopping time for study time in deciding how many hours to study and how many to spend shopping. Society also makes trade-offs -- such as, for example, between its need for a more plentiful supply of energy and its need to prevent excessive deterioration of the environment caused by energy production technologies. Evaluating trade-offs, when done carefully and systematically, involves comparing the costs and benefits of each of the available alternatives with each other.

Opportunity cost is defined as the value of the sacrifice involved in a trade off – in other words what you give up in a an economic decision. Most choices are not all-or-nothing decisions; rather they typically involve small changes at the margin -- a little more of this at the cost of a little less of that. Consumers continuously practice marginalism and make trade-offs as they consider whether to buy one more unit or one unit less of a good or service in their efforts to obtain a mix of goods and services that afford them the greatest satisfaction for their available buying power. Producers must constantly be deciding (and reevaluating) their trade-offs in choosing whether to produce somewhat more or somewhat less of a particular product, whether to add a few more workers or lay a few off, whether to invest in more plant and equipment or whether to close down some of existing capacity, and so on -- in their efforts to maximize profits.

This week's blog assignment asks you to look at key trade-offs in US history and evaluate the wisdom of those decisions on a policy level and matters of popular (citizens) choice.

Directions – Actively read the “US Economy: A Brief History” summary at:

www.countrystudies.us/united-states/economy-3.htm

• Identify THREE moments/ periods in US history wherein individuals in US society and/ or the government as a whole participated in or was affected by an economic trade off.

• What was the opportunity cost of this decision?

• Did it advance or restrict social and economic progress at time when this decision was made?
  

Your assignment may take the form of:

A blog or typed assessment of 250 words or more (emailed, typed, posted or posted here)

       OR 

 A visual chart/ graphic organizer/ comic strip or timeline reflecting all of the ideas above

Welcome to our class blog!

For your first homework assignment:

1. Pose a question you have about the current US or global economy.

2. Note one issue that you found on our class syllabus that interests you OR identify an economic topic/ issue not included in the syllabus that you would like to learn about in the semester ahead. What specifically about that topic do you want to know?

3. Close your comment with your first name, last name and class block

PLEASE REMEMBER TO BRING IN YOUR SIGNED SYLLABUS TOMORROW (counts as a separate assignment)