Bell Ringer #8 – 3/17/11Bell Ringer #8 – 3/17/111.Read & Copy the

“Economics Notebook” question on page 348.

2.Respond in paragraph form.

3 Types of Taxes3 Types of Taxes1. Proportional – “flat rate taxes”,

takes the same % of income from everyone.

2. Progressive – takes larger % from high-income person than low-income

3. Regressive – Takes larger % from low-income (sales tax)

Largest Sources of Largest Sources of Tax RevenueTax Revenue

1.Individual income taxes2.Corporate income taxes3.Social Security Taxes4.Property Taxes5.Sales Taxes

History of St. Patrick’s DayHistory of St. Patrick’s Day•Patrick was not a

leprechaun who had a pot of gold. He was a missionary who converted 120,000 Druids to Christianity.

•He started over 300 churches and used a shamrock to teach the Holy Trinity.

•Patrick was taken as a slave to Ireland by Vikings. He was there from 16 to 22 years old, when he escaped.

•For the rest of his life, Patrick preached about Jesus, spread Christianity, and spoke out against slavery. Some historians even call him the world’s first abolitionist!

Why is he a Saint?Why is he a Saint?•The Roman Catholic Church

made him a saint in 664 A.D. • It wasn’t until 1846, when there

was a potato famine in Ireland, and millions of Irish Catholics came to America, that “St. Patrick’s Day” was celebrated.

•The Irish population in the U.S. went from 2% to 20% in just a decade.

Celtic CrossCeltic Cross•The druids of Ireland

worshiped the sun. Patrick used the cross to spread Christianity.

•The Irish combined the two to create the Celtic Cross.

Labor UnionsLabor Unions• Labor Union - organization of

workers that negotiates for better wages, improved working conditions, and job security

• Plumbers, electricians, teachers, etc.• Union membership has greatly

declined over past 100 years

Collective BargainingCollective Bargaining• Union leaders are selected to

negotiate a new contract with management – this is collective bargaining.

• Union and management reps meet to discuss goals and offer solutions.

• A contract settlement is often reached.

Types of NegotiationTypes of Negotiation • Mediation – negotiators call in a

neutral third party, or “mediator”, to listen to the arguments of both sides and to suggest an agreement.

• Arbitration – calls for the assistance of a negotiator, but uses an “arbitrator” to arrive at a contract. The decision is legally binding.

Poverty & the Gini IndexPoverty & the Gini Index• Gini Index – This is used as a statistical

measure of income inequality between wealth and poverty.

• The Gini coefficient ranges 0-1 (sometimes X 100 to range 0-100). A low Gini coefficient indicates a more equal distribution, with 0 indicating equality. (Never exists)

The U.S. Gini IndexThe U.S. Gini Index• In the U.S. the Gini continues to rise – meaning the

rich are getting richer and poor are getting poorer or staying poor.

• The Gini Coefficient for the U.S. has risen steadily since 1967. If the current trend continues, the U.S. will reach a Gini Coefficient of 0.55 by 2043. This coefficient is equal to Mexico’s in 2000. Mexico is not known for having a large prosperous middle class.

• Unless the U.S. breaks this trend, the American middle class will be a thing of the past - actually within the lifetime of most Americans living today.

Here is a list of recent Gini Indexes for a select group of nations

• Japan- 24.9, U.K.-36.0, Sweden- 25.0, Iran- 43.0, Germany-28.3, USA-46.6, France-32.7, Argentina-52.2, Pakistan-33.0, Mexico-54.6, Canada-33., South Africa-57.8, Switzerland- 33.1, Namibia- 70.7

• Notice that the Gini Index for the United States is closer Mexico's than it is to Canada's.

Writing Part of AssignmentWriting Part of Assignment• Due Monday (3/22)• 1 piece of notebook paper with 1

paragraph about each company – title paragraphs with company names.

• Who? What? When? Where?–Explain how and when the company

started, who runs it, where offices are located, products/services it provides, and the current economic strength of the company.

– IN YOUR OWN WORDS!

HomeworkHomework

• Read Ch 8, Sections 1,2,3 (pgs 169-190)

• Complete Ch 8 Review, “Identifying Ideas” and “Understanding Main Ideas” on page 192 (due Friday)