Read each area of the webquest carefully. If you do not understand any part, just ask Mr. Crego for help. Take it step by step and you will do GREAT!
The following California State Standards apply to what you have learned and are learning now:
12.2 Students analyze the elements of America's market economy in a global setting.
1. Understand the relationship of the concept of incentives to the law of supply and the relationship of the concept of incentives and substitutes to the law of demand.
2. Discuss the effects of changes in supply and/or demand on the relative scarcity, price, and quantity of particular products.
Introduction
George W. Bush's economic policy is based on trickle-down economics, also known as supply-side stimulus. Reagan was a big fan of this idea also. Simply described, supply side’s argue that the best way to stimulate the economy to grow is to cut taxes on the wealthy. When their tax rates fall, the rich will increase their investments. For example, a restaurant owner might decide to build a larger kitchen if she gets a big refund check. Then, she'll have to hire more workers to staff that kitchen, and so employment goes up, indirectly because of that original tax cut.
Task
In this webquest you will work in teams of three to develop a PowerPoint presentation that gives your own definition of supply side economic theory and research the current effects it has on our economy. Then you will form a final opinion on the effectiveness of this type of thinking. Your final opinion must be substantiated with research facts and their sources.
Process
All three team members must do research to gather information on your presentation. One person can research for current opinions on the supply side approach. The second person can gather current economic gains or losses over the last decade to determine what economic policies appear to work. The third member of the team should search for visual aids (such as charts and/or tables) that can be used in the presentation. When research is complete, the writing can be divided up between two team members, as the third person assembles the PowerPoint Presentation.
Resources
Learn more about supply side economics:
http://www.questia.com/popularSearches/supply_side_economics.jsp
http://www.investopedia.com/articles/05/011805.asp
http://bigpicture.typepad.com/comments/2003/12/2004_a_test_of_.html
Find out how our economy is doing today:
http://www.ny.frb.org/research/national_economy/nationalindicators.html
http://www.aflcio.org/yourjobeconomy/todayseconomy/
Evaluation
Adressing all areas of the task - 6 Points
Explaining your work through the use of original thought - 6 Points
Professional looking presentation, complete with visual aids to support your opinions - 6 Points
Total possible points for each member of the group - 18 Points.
Not pulling your weight in this project - 0 Points
Conclusion
George Herbert Walker Bush called supply-side economics "voodoo economics" because all of supply-side theory was based on a hope that the rich would invest those tax cuts and not just stick them in the bank. George W. Bush ignores his father's opinions about the wisdom of his economic policy, however, and is a big supporter of supply-side economics. So... who do YOU agree with. In a very short period of time all of you will be part of the voting public that elects officials that determine what are economic course is. Will you be throwing a dart against the wall when you vote, or will vote with an EDUCATED opinion on who supports the best policies for our country? Of course, maybe you will be the one that people are voting for!