2. America’s Changing
Economy Graphing Activity
Different Types of Industries
Employment by Industry graph
Main sectors of the economy
Employment by Industry in the U.S. graph
3. Different Types of Industries
Services
Considered white
collar
Some jobs require a
high level of formal
education
Agricultural
Considered blue
collar
Create products
based on a farm
Little formal
education needed
Manufacturing
Considered blue collar
Create products by
hand or with machines
Little formal education
needed
Mining
Considered blue collar
Remove mineral from
the ground
Little formal education
needed
4. Write the following statements
in your notes.
Between 1910 and 2010, these industries
saw a decline
Between 1910 and 2010, this industry saw
an increase
5.
6. Main sectors of the economy
Manufacturing
Considered blue
collar
Create products
by hand or with
machines
Little formal
education needed
Professional and
Business Services
Considered white
collar
Provides services or
transacts business
operations
Formal education
usually required
7. Write the following statements
in your notes.
Between 1951 and 2007, the overall trend for
manufacturing employment
(increase, decrease or stay the same)
The difference in manufacturing employment
between 1951 and 2007 was
Between 1951 and 2007, the overall trend for
professional and business employment
(increase, decrease or stay the same)
The difference in professional and business
employment between 1951 and 2007?
8.
9. Reaganomics Decision
Directions
1. Read the handout and decide what
you will do in each of the five areas.
2. Fill out handout 2 and decide what you
will do about federal spending.
If you are cutting the budget, decide
where the money will come from.
1. Discussion on the budget
11. Lower income-tax rates for
individual and businesses
Would you lower income-tax rates for
individual and businesses?
How would this help with the economy?
12. Decrease government
regulation of business
Would you decrease government
regulation of business?
How would this help with the economy?
13. Fight inflation by keeping
interest rates high
Would you fight inflation by keeping
interest rates high?
How would this help with the economy?
14. Balance the federal budget
Would you balance the federal budget?
How would this help with the economy?
15. Read the Reaganomics handout
and answer these questions.
Essential Question: What is the proper role ofEssential Question: What is the proper role of
government in people’s lives?government in people’s lives?
1. Did the economy under Reagan improve? Use1. Did the economy under Reagan improve? Use
two examples from the text to support your answer.two examples from the text to support your answer.
2. According to the article, why did Regan believe2. According to the article, why did Regan believe
cutting taxes would improve the economy? Explaincutting taxes would improve the economy? Explain
at least two reasons in your own words.at least two reasons in your own words.
3. Which action taken by Reagan had the greatest3. Which action taken by Reagan had the greatest
impact on the economy? Use a specific exampleimpact on the economy? Use a specific example
to support your response?to support your response?
4. Explain why Reagonomics is a good title for this4. Explain why Reagonomics is a good title for this
article. Give two reasons to support your response.article. Give two reasons to support your response.
16. The Conservative
(Reagan) Revolution
Response to overgrown
government entitlement
programs
$300 billion annually
Goals of conservative
movement
Shrink the size of the
federal government and
reduce spending
Promote family values
and patriotic ideals
Stimulate business by
reducing government
regulations and lowering
taxes
Strengthen national
defense
17. Reagan’s Government
Spending Policies
Made an attempt to cut but was largely
unsuccessful
Tried to slow its growth
Increased defense spending by $28 billion
Possibly led to end of the Cold War
Proposed cutting Social Security payments to early
retirees
After pressure, Reagan dropped the idea
Formed a commission to study the problem
Cuts in education, protection, transportation,
and general government
Saved only $10 billion
Federal budget rose to almost $500 billion
18. Reagan’s Tax Cuts
Congress passed and Reagan signed
a law to lower tax rate
5% in 1982
10% in 1983
10% in 1984
Tax rate for wealthiest Americans dropped
from 74% to 50%
Also cut taxes on businesses
May have caused the large economic
expansion of the 1980s
At the time the longest peacetime expansion in
American history
19. Reduction of Regulations
Some industries benefited
Oil and banking
Weakened antitrust laws against large
businesses
Positives- decreased regulation reduced costs
and increased investment and expansion
Negatives- fewer regulations meant businesses
could be riskier or unethical
Banking industry had many savings and loans
companies go bankrupt
Cost the government over $500 billion
20. Interest Rates
The percentage that banks charged
borrowers on the unpaid portion of
their loans
High interest rates prevented inflation
but discouraged investment
Federal Reserve did not lower them
President Reagan did not intervene
1983 economy rebounds and interest rates
fall
21. Balanced Budget
Impossible when government spending
increases while tax cuts are enacted
Deficit
What the government still owes after taxes
are collected
Grows from $79 billion in 1981 to $113 billion
in 1982
Approximately how many people were employed in manufacturing in 1951? Approximately how many people were employed in professional and business services in 1951? Approximately how many people were employed in manufacturing in 1972? Approximately how many people were employed in professional and business services in 1972? Approximately how many people were employed in manufacturing in 1990? Approximately how many people were employed in professional and business services in 1990? Approximately how many people were employed in manufacturing in 2007? Approximately how many people were employed in professional and business services in 2007? Did the overall trend for manufacturing employment increase, decrease or stay the same between 1951 and 2007? Approximately, what was the difference in manufacturing employment between 1951 and 2007? Did the overall trend for professional and business employment increase, decrease or stay the same between 1951 and 2007? Approximately, what was the difference in professional and business employment between 1951 and 2007?
Ronald Reagan (b. 1911). . 2005. Image. 25 May 2010. <http://www.discoveryeducation.com/>.