Louisiana: The History of an American State

Transcription

1 Slide 1 Louisiana: The History of an American State 2005 Clairmont Press Chapter 3 Louisiana s Economy: Resources and Rewards Study Presentation Slide 2 Chapter 3 Louisiana s Economy: Resources and Rewards Section 1: Basic Economic Concepts Section 2: Louisiana s Economic History Section 3: Louisiana s Resources Section 4: Providing Louisiana s Goods and Services Slide 3 Section 1: Basic Economic Concepts ESSENTIAL QUESTION: How do people satisfy their wants and needs in our economic system? Page 1 of 21

2 Slide 4 Section 1: Section 1: Basic Economic Concepts What words do I need to know? 1. goods 2. services 3. consumer 4. producer 5. natural resources 6. human resources 7. capital resources 8. scarcity Slide 5 Section 1: Section 1: Basic Economic Concepts 9. opportunity cost 10. supply 11. demand 12. profit 13. traditional economy 14. command economy 15. market economy Slide 6 Wants and Needs goods: physical items food, clothing, cars, housing, etc. services: activities people do for a fee producer: person or business makes goods or provides a service Page 2 of 21

3 Slide 7 Resources and Scarcity natural resource: gift of nature part of the natural environment, - water, trees, minerals human resources: people those who produce goods & provide services capital resources: money & property used to produce goods and services scarcity: available resources demand greater than supply Slide 8 Making Choices Scarcity vs. producers & consumers Unlimited needs vs. wants Limited resources vs. limited amounts of goods & services Basis of an economic system choosing how to use resources Those making choices in United States individuals, businesses, & communities Slide 9 Costs and Benefits Opportunity benefit Choices (getting a job vs. going to college) Immediate salary vs. getting an education Opportunity cost cost of choice not taken Other choices of opportunity benefits & costs Using resources or using time Value of non-chosen alternative Page 3 of 21

4 Slide 10 Trade-Offs Either/or choice: not always the best May combine parts of choices as trade-off Trade-off choices to get wants & needs Slide 11 Supply and Demand supply: quantity of a good or service offered for sale demand: quantity of a good or service consumers are willing to buy Lower prices: consumers buy more, producers make less $ per item Higher prices: consumers buy less, producers make more $ per item profit: amount left after costs are subtracted from price (motivator for producers) Slide 12 Basic Economic Questions Four basic economic questions: 1) What to Produce 2) How to Produce 3) How Much to Produce 4) For Whom to Produce Page 4 of 21

5 Slide 13 What to Produce Making the necessary decisions Meeting needs & wants How to make the capital resource (money) Human resources Natural resources Finally, deciding what to produce Slide 14 How to Produce Plan of action: How to carry out plan Process of implementation Supplies needed Overall production schedules: When to start production When to end production Slide 15 How Much to Produce Items to consider for plan Time involved Resources needed Market demand for product (s) and/or service (s) Decisions affected by scarcity Page 5 of 21

6 Slide 16 For Whom to Produce Develop knowledge of consumers Study needs of consumers Consider supply & demand Analyze & plan for competitors Consider advertising Slide 17 Economic Systems economist: one who studies the economy Three basic kinds of economies 1. Traditional Economy 2. Command Economy 3. Market Economy Economy may function as combination of all three Slide 18 Traditional Economy Customs, habits, & beliefs determine and answer the four basic economic questions Continues in the way it has always been done Page 6 of 21

7 Slide 19 Command Economy The government controls the economy answers the four basic questions makes the decisions has power & authority negotiates input & output controls competition Slide 20 Market Economy Individuals Answer the four basic economic questions based on supply & demand Also known as free enterprise Based on private ownership Freedom of choice Click here to return to Main Menu. Slide 21 Section 2: Louisiana s Economic History ESSENTIAL QUESTION: What were Louisiana s early economic systems? Page 7 of 21

8 Slide 22 Section 2: Louisiana s Economic History What words do I need to know? 1. barter 2. mercantilism 3. smuggling 4. indigo 5. tobacco 6. commerce Slide 23 Louisiana s Economic History 1 st economic system: barter (trading goods & services without money) Then mercantilism: command economy controlled by the government Next, smuggling: illegal trade with colonies of other nations Slide 24 Louisiana s Economic History Louisiana Purchase: end of colonial period end of earliest crops tobacco & indigo beginning of agricultural market New market: sugar cane & cotton New Orleans: became a major port for North America 1801 described as the grand mart of business, Alexandria of America Page 8 of 21

9 Slide 25 Louisiana s Economic History Early years of statehood: a continuing agricultural economy 20 years before Civil War: a booming economy End of Civil War till after WWII: a struggling economy Growth and survival of war-developed industries Slide 26 Louisiana s Economic History New equipment & machines brought by technology Human labor replaced by machines Many farms deserted by workers : most old growth trees cut or gone Slide 27 Louisiana s Economic History Oil(another resource) Became valuable in early 20 th century Economy base changed by new industry Agricultural economy changed due to WWII & demands for oil New economic direction: interdependent global economy 21 st century: seeks diversity & less dependence on oil industry Click here to return to Main Menu. Page 9 of 21

10 Slide 28 Section 3: Louisiana s Resources ESSENTIAL QUESTION: What roles do natural resources, capital resources, and human resources play in the economy of Louisiana? Slide 29 Section 3: Louisiana s Resources What words do I need to know? 1. mineral resources 2. nonrenewable 3. lignite 4. biological resources 5. renewable 6. pulpwood 7. labor union Slide 30 Natural Resources Economy supported by abundant natural resources Examples: air, water, & rich soil 21 st century: agricultural shift from small farms/plantations to huge agribusiness systems Fewer people on farms Amount of crops not decreased Page 10 of 21

11 Slide 31 Natural Resources State ranking: 2 nd in sugar cane & sweet potatoes Vital crops: rice, cotton, soybeans Soil & climate good for raising beef & dairy cattle (dairy farming diminished) Abundant water supply good for agriculture, industry, human use, transportation, & recreation Slide 32 Mineral Resources Oil Natural Gas Salt Sulfur Lignite Slide 33 Mineral Resources minerals: inorganic substances formed by Earth s geological processes Important to Louisiana s economy nonrenewable: not replaced by nature once extracted (taken) from the environment Mineral resources found in Louisiana oil ( black gold ), natural gas, salt, sulfur, lignite Construction resources in Louisiana sand, gravel, limestone Page 11 of 21

12 Slide 34 Oil Oil for today s energy created by decayed plants from millions of years ago 10% of US oil reserves in Louisiana Louisiana: one of top oil-producing states in United States st oil well in Louisiana st platform in Gulf of Mexico More oil deposits beneath Gulf of Mexico Slide 35 Natural Gas Larger deposits than oil ¼ of the nation s supply 1 st burned as waste 1917: carbon black developed used in making tires, ink, & more Important energy for homes & industry Slide 36 Salt Needed for human & animal survival Used by Native Americans in trade A form of money, later Relied on by the Confederacy during the Civil War Used in chemicals & other products polyvinyl chloride plastic PVC pipe for plumbing Page 12 of 21

13 Slide 37 Sulfur Major ingredient in: matches, gunpowder, medicine, plastic & paper 1869 richest 50 acres in the world town of Sulphur in Calcasieu Parish Decrease in value foreign import changed importance unprofitable to mine in Louisiana Slide 38 Lignite Soft, brownish-black coal Burns poorly Mined since 1970s Found mostly in DeSoto Parish Used for electric power station near Mansfield Slide 39 Biological Resources Biological resources Common term: plants & animals Scientific term: flora & fauna renewable: replenish over time Main divisions: Forests Wildlife Fish Page 13 of 21

14 Slide 40 Forests 50% of Louisiana in forests 2 nd largest income producer 90% pine trees 75% trees cut for pulpwood Large trees cut for sawtimber Slide 41 Forests Hardwood sawtimber used for furniture & flooring Paper mills, lumber mills, & plywood plants Christmas tree farms started by the Office of Forestry in the LA Dept. of Agriculture Slide 42 Wildlife Variety of wildlife History of trapping & hunting tradition Economic resources Fur pelts: Once sold more than a million pelts annually Hunting regulations State Department of Wildlife and Fisheries Page 14 of 21

15 Slide 43 Wildlife Hunting Source of food Recreation Millions of dollars for state s economy Timber cutting Reduced forest land Forest animals decreased Increase in recent years Slide 44 Wildlife White-tailed dear Population has increased Black bear Largest wild animal in Louisiana Endangered: not legal to hunt Wild turkey Classified as a game bird Efforts have been made to increase its numbers Slide 45 Wildlife Dove Quail Migratory waterfowl Alligators 1963: placed on the federal protected species list 1981: hunting under strict rules Millions of dollars in hides & meat Page 15 of 21

16 Slide 46 Fish (Recreation) Freshwater bream, bass, perch, catfish Game fish: trout, redfish, drum, mackerel, blue marlin, amberjack, grouper, & tarpon (illegal to sell commercially) Slide 47 Fish (Commercial) Crawfish raised on crawfish farms Catfish sold: freshwater & farms Commercial fishing: tuna, sea trout, red snapper Slide 48 Capital Resources Human-made products used to produce goods or services Examples: rice mills, sugar refineries, oil refineries, cotton gins, & meat-packing plants Others include: transportation facilities bridges, highways, & airports Page 16 of 21

17 Slide 49 Human Resources People who supply the labor Physical or mental Paid for goods or services Requirements new skills & specialization education & training Labor unions workers organization to protect workers rights 1976 right-to-work law passed workers could not be forced to join a union Click here to return to Main Menu. Slide 50 Section 4: Providing Louisiana s Goods and Services ESSENTIAL QUESTION: What is Louisiana s place in the global economy? Slide 51 Section 4: Providing Louisiana s Goods and Services What words do I need to know? 1. private goods & services 2. public goods & services 3. interdependent 4. Superport 5. tariff 6. economic indicators 7. gross domestic product (GNP) 8. consumer price index 9. inflation 10. unemployment rate Page 17 of 21

18 Slide 52 Louisiana s Goods and Services free market: private goods & services Limited services & benefits to the owners Provided by the government: public goods & services Usually available to everyone highways, police, education, libraries Slide 53 Manufacturing Louisiana-made goods include Ships, trucks, electrical equipment, glass products, automobile batteries, & mobile homes Chemicals industry Ranks 2nd in USA Petrochemicals (chemicals made from petroleum) More than 100 chemical plants in LA Fertilizers & plastics Slide 54 Manufacturing Billions of gallons of gas from petroleum refineries each year Shipbuilding transport ships & merchant vessels Coast Guard cutters, barges, tugs, supply boats, fishing vessels, & pleasure craft Page 18 of 21

19 Slide 55 Aerospace and Aviation Louisiana workers part of the United States space program Space shuttles assembled in New Orleans Lake Charles aircraft assembly for military use Slide 56 Biotechnology Combines biological research with engineering Pennington Biomedical Center leader in research Slide 57 Service Industries Adds billions of $ to the economy Tourism sightseeing eating shopping fishing & hunting Mardi Gras Movie-making st film made in Louisiana st Tarzan film made More recent Steel Magnolias Page 19 of 21

20 Slide 58 Economic Institutions Joint effort to produce & sell goods and services Groups known as economic institutions Include Businesses large and small Corporations: owned by investors, banks, & labor unions Banks important: allow producers & consumers to trade, save, & invest Slide 59 Louisiana in the U.S. and Global Economies 1 st economic systems: simple barter economies Today s systems interdependent overlap producers & consumers rely on each other Louisiana s offshore port: Superport Slide 60 Trade Policies North American Free Trade Agreement (NAFTA) changes trade policies & agreements Trade restrictions removed Foreign countries offer cheap labor abroad Companies moving abroad Tariffs lessened Imported goods & low prices hurting Louisiana Page 20 of 21

21 Slide 61 Measuring the Economy Economic indicators Gross domestic product Consumer price index Inflation Unemployment rates Click here to return to Main Menu. Page 21 of 21