Good Day!

DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 01/07/10, Topic: Health Care2) On the next line, write “Opener #2” and then:

1) Plot your mood, reflect in 1 sent.2) Respond to the opener by writing at least 2 sentences about:Your opinions/thoughts OR/AND

Questions sparked by the clip OR/AND

Summary of the clip OR/AND

Other things going on in the news.Announcements: None Intro Music: Sky Beneath

Agenda1) Health Care Case Study (as an intro to “What is Economics”)

What you will be able to do:1) Which economic system is best?

Reminder1) Print/Design Checks1) First Day Forms

Ways to Make Chiang Money1) Better job2) Spend less3) Make $ on stock market (nx week)4) Sell “legal” things to classmates (Fri: marketplace, study notes, BUT you cannot sell homework/projects.

Can I borrow money:Eventually, the banks will loan money (desk cost about 20x rent)

Work #2a, “Initial Assembly Bills”Before the governor (Mr Chiang) signs the

bills, he wants the voters input.1) How capitalist, socialist, or communist

are the current bills that are proposed? 2) Would you support or be against the

real CA’s legislature, if it wrote laws with the same intents as conveyed in the bills before you?

3) What do you predict to be the long term pros/cons of this legislation?

4) What changes do you think should be made to the bills?

Work #2a, “Uninsured Debate”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Don’t cover1) Cost the gov money or cost businesses and taxpayers money, reducing profits, thus hurting global competitiveness.

2) Gov need to focus 1st on controlling h.c. costs.

PRO: Covering everyone 1) Covering everyone means a healthier workforce, so increased worker productivity, which means better global competiveness.

2) It’s morally right thing, ppl are suffering.

Health Insurance

Only a fraction will get sick, so as long as

the premiums will pay for that sick fraction

and make a profit, the system works.

One of themost valuedscarceresources:

Health Care(Remember that

scarcity is not just for objects, but for skills/services too).

1) $600 billion of federal spending, $2.4 trillion spending if including private

2) Family of 4 can cost biz $16k, worker paying $3k of that

Notes #2a, Title: “Heath Care Notes” 1) Health Care System a) Capitalist System: Those can afford buy private b) Light Socialist System (US): Gov uses taxes to

provide health care for the poor kids + elderly i) Medicaid: Gov pays for health care for poor kids,

parents, & few disabled ($200 billion/$1300)ii) Medicare: Gov pays for health care for over 65

($400 billion/$2600)2) Full Socialist System: gov pays for all (single

payer) OR Gov runs health care (nationalized)3) H.C. Reform: a) All must get H.C. or fine b)

expand Medicaid 150% + kids can stay in parents’ ins till 26 c) ins comps can’t deny

coverage for pre-exist illnesses or set max payout

150 million taxpayers out of 300 million Americans

Medicaid and Medicare (Single Payer): In the H.C. debate, expansion of this is called the public option.

Why old ppl? They don’t have income. (Why not just poor old ppl, excluding rich old

ppl reduced political support.Why poor families? They are most vulnerable.

Patient finds dr

Dr bills for service

Gov pays dr

European Style Health Care

Patient goes to gov hospital

Dr works for Gov

Work #2b, “Lifestyle Debate”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Ppl should not have to pay for their lifestyle1) To penalize ones lifestyle like eating is to take away their freedom

2) This is a slippery slope, should the gov have the power to dictate your life?

PRO: Ppl with dangerous lifestyles pay more1) Unlike genetic illnesses, ppl have a choice not to smoke or eat unhealthily, so they should pay for that choice

2) Healthier patients is cheaper H.C. for all

Notes #2b, Title: “Economics Notes” 4) Private Health Care Terms a) Premium: What you pay regardless of usageb) Co-pay: What you pay per visitc) Deductible: What you pay b4 insurance paysd) Coverage/exculsions: What they will/will not covere) HMO: Get all services from 1 comp (dr salaried)f) PPO: Get serv from list of private drs (drs bill PPO)g) POS: Mix of HMO/PPOh) Flex Account (125 Account): Employer can set

aside pre-tax dollars pay for health expenses (if you don’t use it up by end of year, it’s gone)

i) Cobra: Lose job, temp pay to keep company h.c. (but pay full cost, so unemp often have no h.c.)

HMO (Private, profit or non-p)

Patient goes to HMO hospital

Dr works for HMO

PPO (Private, profit or non-p)

Patient finds dr

Dr bills for service

PPO pays dr

Review1) Health Care Reform (3): a) Control rising cost

b) protect those with health care c) expand health care to uninsured (15% of US no H.C.)

i) Public Option: Gov acts as health care provide, collecting premiums + paying for services (House bill has, Senate bill does not)

ii) Abortion Issue: When gov helps ppl buy priv ins, can they have access to abortions?

iii) Current Bill (in Conf Com, merging H+S Bill): a) All must get health care or pay fine, gov help pay for priv ins b) expand medicaid 150% + kids can stay in parents’ ins till 26 c) ins comps can’t deny coverage for pre-existing illnesses

Work #2c, “Public Option Debate”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Gov Should Just Help Ppl Buy Priv H.C.1) Priv H.C. can’t compete against gov, since if gov option is not profitable, gov will bail out

2) Gov will offer worse care, look at how the gov operates everywhere else

PRO: Gov Needs to Provide Heath Care1) Most states only have 1-2 major priv H.C. leading to little competition, gov can be like Post Of vs UPS/Fedex

2) Gov can offer cheaper care, b/c no profit focus

Work #2d, Title “Global Health Care”

1) Copy Source Title: Frontline

2…) Discuss questions on the board with a partner. Summarize your discussion (include their name at the end). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work SectionsTime Bookmark: 00:00

Capitalist Grading System:

Communist Grading System: Everyone’s grade is pooled into a community grade, and you receive an average of it.

Socialist Grading System:Students with good grades get taxed, so a % can be transferred to poor performing students.

Work #2e, “Debate: Capitalism vs Socialism”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Favor Socialism1) Too hard for poor to get ahead without help2) If gov provides all your survival needs, you can then focus on your work3) Private businesses can operate fine outside the zone of public services

PRO: Favor Capitalism1) Without the fear of failure and reward of success, humans don’t work hard2) More profits you can keep, the harder you work3) Individuals are faster and more clever than gov

Selling Simulation: “Friday Marketplace”Many people get experience earning money at a job, fewer people experience earning money through their own business. Have fun with it!

Market: Each Friday’s Market Takes Place in 2 Rounds (1 Seller Round, 1 Buyer Round)1) Sellers and buyers negotiate prices.2) Take home all items you brought/bought at the end of the marketplace.3) Carefully store your money and eventually deposit in bank.4) Buyers beware, things sold “as is”, sellers persuade them of the utility of your items.No illegal, non-school appropriate, offensive, living, rotting, broken, or potentially messy items allowed.

Work #, Title “Marketplace”Before the Simulation:1) Write down your company name. Also write it on the small sign (marketing: you will improve upon this over time)After the Simulation:2) Record your profits at end of the simulation3) Reflect on what can be done better to increase business next time, focus on what products are in demand (not mean you can or want to supply it) and how marketing can be improved next time (branding+advertising).

Remember, buyer beware!

Welcome to EconomicsStudy of resource allocation:1) What is produced? 2) How to produce it?3) Who do we produce it for?

Homework: 1) Study today’s notes + work sections

for a possible workbook quiz.2) Design your checks due Friday.

3) Bring 1+ items for Friday Marketplace

Workbook Check: If your name is called, drop off your workbook with Mr. Chiang (if requested, points lost if your workbook is not turned in)