Career Planning and Government Role in the Economy

Human Capital:

The combination of a person's education, knowledge, skill, experience, health, training, and talent

How do people develop their human capital?

Through formal/informal education

What are the results of investing in your human capital?

You have potential to produce more, earn more, and choose a satisfying career

Career planning starts with…..

Self-assessment

Employers seek workers with a…….

Strong work ethic

What leads to a higher income?

Higher skill/education levels

What influence job income?

Supply and Demand (If your job is in high demand, you will get paid more, and vice versa)

Employers seek workers who have kept pace with…..

Technological changes by updating their skills

What do tech and information flows permit?

They permit people to work across international borders

What does the technology and information structure lead to?

It creates competition from foreign workers for US jobs, but also may create opportunities for US workers to work internationally

How do you be fiscally responsible?

• Making careful spending decisions
• Saving/investing for future
• Having insurance
• Keeping to a budget
• Using credit wisely
• Understanding how contracts, warranties, and guarantees can protect an individual

What has the government done to promote competition?

• Established/enforced antitrust laws
• Enacted policies to encourage global trade (treaties)
• Supported business start ups

What are trusts?

An organization of businesses in the same industry that join together so they don't have to compete, creating a monopoly

What is a monopoly?

Complete control of a product or service

What is the FCC and what does it do?

Federal Communications Commission: Regulates interstate and international communications

What is the SEC and what does it do?

Securities and Exchange Commission: Protects investors, regulates securities, and enforces federal securities laws

What is the FTC and what does it do?

Federal Trade Commission: Protect consumers from unfair practices

Government provides goods/services that…..

Markets can't produce efficiently (highways, schools, defense)

What are the characteristics of goods/services provided by the government?

• They provide benefits to many people at the same time
• They wouldn't be available without the government to provide them

How does the government pay for goods/services

• Tax revenue

• Borrowed funds

• Fees

• Fines

Income tax:

Payment made based on income received, main source of revenue for federal and state governments

Sales tax:

Tax placed on items purchased, main source of revenue for state and local governments

Property tax:

Tax placed on property, main source of revenue for local governments

What does federal government revenue pay for?

National defense, homeland security, medical expenditures, payments to social security, and national debt

What does state/local government revenue pay for?

Education, public health/welfare, road repair/construction, and public safety (fire/police departments)

What does the federal reserve bank do?

• Regulates banks
• Influences money supply and interest rates
• Provides financial services

Who is the federal reserve system made up of?

A Board of Governors and 12 federal reserve banks (Chairperson is appointed by president and approved by Senate)

How does the government protect the rights of the public?

• Enforcing property rights
• Protecting public health and safety
• Allowing consumers to take legal action against violations

What agencies protect consumers?

• CPSC (Consumer Product Safety Commission)
• FDA (Food and Drug Administration)

What agencies protect labor?

• OSHA (Occupational Safety and Health Administration)
• EEOC (Equal Employment Opportunity Commission)

What agencies protect the environment?

• EPA (Environmental Protection Agency)

What does money act as?

• Medium of exchange
• Store of value
• Measure of value

What are the types of money generally used in the US?

• Currency
• Coins
• Deposits that can be accessed by checks/debit cards