Auto Bailout Debate

Well it is that time again; time for the Federal Government to fly in on the proverbial sled and deliver toys to the good children of America. And by toys, I mean millions of dollars. And by good children, I mean bankrupt corporations.

The question is do we really need to go down this road again? Is it the job of the Federal Government to bail out the Big Three Automakers? In answering this question, consider the following points:

1. What are the opportunity costs of NOT bailing out the automakers?
2. What message are we sending to other businesses by going through with the bailout?
3. Does this represent a fundamental change in our economic system?
4. Why should or shouldn't the government bail out the automakers?

Some links to help in your investigation:

http://www.nytimes.com/2008/11/20/business/20auto.html?_r=1&ref=automobiles

http://www.foxnews.com/story/0,2933,455286,00.html

http://www.forbes.com/opinions/2008/11/19/gm-economy-autos-oped-cx_bm_1119mcgarvie.html

http://www.reuters.com/article/GCA-autos/idUSTRE4AJ7YZ20081120

http://www.google.com/hostednews/ap/article/ALeqM5g9_YzIcykt_QqWPWLuCciw2ugCQQD94IHS9G0

GDP Review

What is GDP? How is GDP calculated?

GDP= ______+ ______ + _______ + ( ___ - ____ )

What does GDP not measure? (What is excluded and not taken into account)

Why is GDP not a good indicator of the standard of living in country?

What is GNP, and how is it different than GDP?

What is the difference between GDP and Real GDP?

What is the PI? What is measured by PI?

What is CPI? How/Why do we measure it?

What is the difference between planned and unplanned investment?

Raise the Minimum Wage? Version 2.0

http://www.epinet.org/content.cfm/issueguides_minwage

Should the United States Government raise minimum wage to keep up with the rising cost of living? Who would be the winners and the losers in the long run?

Use the above site to learn about the issues before responding. Be sure to consider both sides of the issue in preparing your response.

Who broke the economy?

Each day seems to bring our economy into an all new level of bad. How long until the Dow hits triple digits? Why is Jim Kramer appearing on television and pleading with tears in his eyes for everybody to sell?

Our economy is facing conditions rarely seen in recent history. As our government seeks to fix some of the problems, many are left wondering how we got here, and who is to blame?

Use the following websites to help in your investigation and consider each of the discussion questions. Be sure to check out all of the websites and make sure you understand the history of the economic crisis before answering the discussion questions.



Discussion Questions:

1. Why should we worry about the stock market if we don't own stock?
2. Should it be the responsibility of the government to "fix" the economy?
3. Who do you believe is to blame for the current economic crisis?

How_Does the Stock Market Effect the Economy?

Welker's Wikinomics

Can't Grasp Credit Crisis?

Few evade blade for financial crisis

Financial_Crisis Explained

Who_Caused_The Economics Crisis?

Paying For Better Healthcare

Head over to Greg Mankiw's Blog (http://gregmankiw.blogspot.com/) and check out the story titled "Should the rich get better health care?" Read the original article (http://www.nytimes.com/2008/02/21/world/europe/21britain.html) and then read Mankiw's commentary.

Post your thoughts about the article, as well as any implications this may have regarding Free Healthcare in the United States.

Are Super Bowl ads worth the money?

If you had $2.6 million lying around the house, what would you do with it? For many companies, 30 seconds of air time is well worth the investment. Are these companies foolish, or is there a reason for all of the hullabaloo?

Use the following websites to answer the question. In additional, answer the following questions in your response:

Super Bowl scores touchdown for the economy

Superbowl Ads

The_Sports_Economist

Are Super Bowl ads worth the money?

The Super Bowl Economy

1. How does the Superbowl affect the economy?
2. What happens to the caps & shirts printed for the team that loses the Super Bowl?