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•
•
•
•
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Shallow river crossing
Sandler, Ant, Smith
To puncture
To allow
Lasagna loving cat
State capital (4 answers)
Adam Smith
• “An Inquiry into the Nature and Causes of
the Wealth of Nations”
• aka “The Wealth of Nations”
• “Invisible Hand”
• Laissez-Faire
Demand-side Economics
John Maynard Keynes
WPA
WPA
Supply-side Economics
• Aka “trickle-down”
• Reaganomics
1. Eddie Murphy – Returns $2.30 for every $1
paid.
2. Katherine Heigl – Returns $3.40 for every $1
paid.
3. Reese Witherspoon – Returns $3.90 for every
$1 paid.
4. Sandra Bullock – Returns $5 for every $1
paid.
5. Jack Black – Returns $5.20 for every $1 paid.
6. Nicolas Cage – Returns $6 for every $1 paid
7. Adam Sandler – Returns $6.30 for every $1
paid.
8. Denzel Washington – Returns $6.30 for every
$1 paid.
9. Ben Stiller – Returns $6.50 for every $1 paid.
10. Sarah Jessica Parker – Returns $7 for every
$1 paid.
Fiscal Policy
• Government use of taxes and spending
to influence the economy.
• Government revenue and expenditure
Budget Terms
• Mandatory versus Discretionary
• Deficit / Balanced Budget / Surplus
• Debt
• Expenditure versus Revenue
By the Numbers
• 2013 Expenditure = 3.45 trillion
– 3,450,000,000,000
• 2013 Revenue = 2.77 trillion
– 2,770,000,000,000
• 2013 Deficit = 680 billion
– 680,000,000,000
• National Debt = 17 trillion
DSM Criteria
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(I) Qualitative impairment in social interaction, as manifested by at least two of the following:
(A) marked impairments in the use of multiple nonverbal behaviors such as eye-to-eye gaze, facial expression,
body posture, and gestures to regulate social interaction
(B) failure to develop peer relationships appropriate to developmental level
(C) a lack of spontaneous seeking to share enjoyment, interest or achievements with other people, (e.g.. by a lack
of showing, bringing, or pointing out objects of interest to other people)
(D) lack of social or emotional reciprocity
•
(II) Restricted repetitive & stereotyped patterns of behavior, interests and activities, as manifested by at least one
of the following:
•
(A) encompassing preoccupation with one or more stereotyped and restricted patterns of interest that is abnormal
either in intensity or focus
(B) apparently inflexible adherence to specific, nonfunctional routines or rituals
(C) stereotyped and repetitive motor mannerisms (e.g. hand or finger flapping or twisting, or complex whole-body
movements)
(D) persistent preoccupation with parts of objects
•
(III) The disturbance causes clinically significant impairments in social, occupational, or other important areas of
functioning.
(IV) There is no clinically significant general delay in language (E.G. single words used by age 2 years,
communicative phrases used by age 3 years)
(V) There is no clinically significant delay in cognitive development or in the development of age-appropriate self
help skills, adaptive behavior (other than in social interaction) and curiosity about the environment in childhood.
(VI) Criteria are not met for another specific Pervasive Developmental Disorder or Schizophrenia."
Income Tax
• PROGRESSIVE Tax
– Higher incomes are taxed at a higher rate
Payroll Taxes
• Employee-taken directly from paycheck
• Employer- paid based on wages paid out
• Examples:
– Social Security (employer match)
– Medicare (employer match)
– Unemployment tax (employer only)
Customs Duties (Tariffs)
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•
•
•
Tax on imported goods
0-20%
Average 3% (1% with FT)
Free-Trade (20 Countries)
Australia Bahrain Canada Chile Colombia
Costa Rica Dominican Republic El Salvador
Guatemala Honduras Israel Jordan Korea Mexico
Morocco Nicaragua Oman Panama Peru Singapore
Federal Excise Tax
• Fuel ($0.184 per gallon)
• Tobacco ($1.01 per pack)
• Alcohol
• Air Travel
Estate (Death Tax)
• Estates over $5,250,000
• Top % of 40%
By the Numbers
• 2013 Expenditure = 3.45 trillion
– 3,450,000,000,000
• 2013 Revenue = 2.77 trillion
– 2,770,000,000,000
• 2013 Deficit = 680 billion
– 680,000,000,000
• National Debt = 17 trillion
#s to Know
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Spending- 3.5 trillion
Revenue- 2.3 Trillion
Deficit1.2 Trillion
Debt16 trillion
Biggest to Know
• Mandatory Program- Social Security
• Discretionary Program- Defense
General Fund Excise taxes
Cigarettes
$1.01
pkg 20
Cigars
$0.40
ea. cigar
Distilled Alcohol 80 proof
$2.14
750 ml
Wine 14% Alcohol or Less
$0.21
750 ml
Wine 14 to 21%
$0.31
750 ml
Wine 21 to 24%
$0.62
750 ml
Wine Sparkling
$0.67
750 ml
Wine Carbonated
$0.65
750 ml
Hard Cider
$0.04
750 ml
Beer
$0.05
12 oz
Pistols and Revolvers
10%
price
Other Firearms and Ammunition
11%
price
Tanning Salon
10%
price
Gas guzzler 21.5-22.5 mpg
$1,000.00
vehicle
Gas guzzler 12.5-13.5 mpg
$6,400.00
vehicle
Telephone Calls
3%
local
Today
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Tax Types
Tax Reform Ideas
State Budget
AS and AD problems
Tax Types
based on percentage of income
• Progressive
• Flat
• Regressive
Tax Revision Ideas
• Progressive Tax with limits on deductions
• Flat Tax with no/few deductions
• “Fair Tax”
Tax Revision
• Obama- “Buffet Rule”
– Minimum Federal Rate of 30% on incomes
over 1 million/year
– Ave. America= 16%
– Millionaires = 20.1%
State Revenue
State Budget
• Top Revenue Source- 6% sales tax
• Top Expenditure- Education
Sides Game
Revenue EXCEEDS EXPENDITURE
Current Debt
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•
15 trillion
16 trillion
17 trillion
18 trillion
Sum of All Deficits and Surpluses
Supply-side
• Funny nickname
Spending that Requires Annual
Congressional Approval
Revenue EQUALS Expenditure
Mandatory or Discretionary
• Largest % of Federal BUdget
Largest Mandatory Spending
Expenditure EXCEEDS Revenue
Largest Discretionary Spending
2013 Deficit
2013 Revenue
•
•
•
•
1.45 trillion
2.77 trillion
3.45 trillion
6.2 trillion
PL measurement
Automatic Spending
2013 Expenditure
•
•
•
•
1.45 trillion
2.77 trillion
3.45 trillion
6.2 trillion
Aggregate Means
Largest Source of Revenue
Supply-side
Example of Excise Tax
# of Countries Free Trade
Death Tax (real name)
Example of Payroll Tax
Adam Smith Book
Largest State Expenditure
Largest State Revenue Source
Demand-side
PL stands for
Output Measurement
Laissez-Faire
Keynes supported _____-side
Reagan supported _____-side
Invisible Hand
Adam Smith
• What controls the economy?
Start the Test!
• I will hand out scantrons while you work