Economy
• The economy is the system
of growing, making, selling,
buying, and using goods and
services.
• In Georgia’s market
economy the resources are
owned and controlled by the
people of the country, rather
than the government. Other
examples of a market
economy include Canada,
UK, Germany, and the
Netherlands.
A True Business Man
• Entrepreneurs are
those people in a
market economy who
see a need and create
goods and services to
satisfy the wants of
consumers.
• John Pemberton
Service Industries
• Service industries those
involved in performing
actions or services for
people rather than
providing products, are
the largest sector of
Georgia's economy.
• Medical care, banking,
insurance, hair cutting,
car repair and education
Different Forms of Trades
• Trade is the voluntary exchange
of goods and services among
people and countries.
• Bartering is the trading of goods
and services without the use of
money.
• Mercantilism is an economic
trade system that was used in
the 16th, 17th and 18th
centuries. It was based on the
idea that national wealth and
power was best served by
increasing exports and
collecting precious metals like
gold in return.
Transportation
• During the late 1700’s and
early 1800’s, transportation
improved with the use of
canals, rail roads,
steamboats, and federal
roads.
• As transportation became
more available , trade
among the states also
increased.
Coca-Cola
• Atlanta druggist John Pemberton invented a
soda that impact not just Georgia, but the
world.
• In 1885 the temperance movement swept
across most of the country.
• Pemberton began a way to remove the
alcohol from his tonic and still have it taste
good.
• The tonic was put into pint beer bottles
,labeled the “Intellectual Beverage and
Temperance Drink,” and sold for 25 cents .
• One customer came into Jacobs Pharmacy
with a severe headache. He bought CocaCola syrup and asked Willis Venable to mix
some with water so he could take it
immediatley. The customer said that after
drinking the mixture that it was much better
than with plain water.
• Within a year, production had grown from 25 to
1,049 gallons.
• July 1887, Pemberton sold Venable two-thirds
interest in his company.
• Pemberton died in August 1888, but before his
death Asa Candler bought all the Coca-Cola stock
for $2,300.
• By 1892 the drink became so popular than
Candler sold his drugstore and formed the CocaCola company.
• In 1919 Candler sold the company to business
man Ernest Woodruff for $25 million.
• Today Coca-Cola products are enjoyed around the
world by over 470 million people each day.
Delta Airlines
• In 1924, Huff Daland Dusters
was founded in Macon.
• In 1925, Huff Daland Dusters
moved its headquarteres to
Monroe, Louisiana.
• In 1928, C.E Woolman convinced
a number of Monroe
bussinessmen to buy Huff
Daland Dusters.
• They renamed it Delta Air
Service, for the Missisippi Delta
Region it served.
• In 1929,Delta began its first
passenger flights.
DELTA
• In 1934, Delta won an airmail contract
that brought service to Atlanta.
• In 1941, Delta moved its headquarters
from Monroe to Atlanta.
• In 1945, the company changed its
name to Delta Airlines.
• In 1953, Delta merged with Chicago
and Southern Airlines.
• In 1990, It became an international
carrier.
• Delta offers more than 600 weekly
flights to 58 destinations in Latin
America and the Caribbean.
Mississippi Delta
The Lower Mississippi Delta
Region is a large and diverse
area encompassing all or parts
of seven states bound together
by their ties to the river.
Broadly defined, the Delta
region spans the entire lower
portion of the river beginning in
southern Illinois, covering
portions of Missouri, Kentucky,
and Tennessee, and including all
of Arkansas, Mississippi, and
Louisiana.
Do these products look familiar?
Georgia-Pacific
• 1927, Owen Cheatham founded
the Georgia Hardwood Lumber
co. in Augusta as a wholesaler of
hardwood lumber.
• 1956, the company marketers of
tissue, pulp, paper, packaging,
building products, and related
chemicals.
• 1982, Georgia-Pacific moved its
headquarteres to Atlanta.
• 2005, the company was acquired
as a wholly owned subsidary of
Koch Industries,Inc. ,a privatley
owned company based in
Wichita,Kansas.
Owen Cheatham
1903-1970
In the 1960s it was still possible to count
on the fingers of one hand the real
Cinderella corporations of America
whose sage management and economic
growth brought stockholders financial
returns exceeding their wildest dreams.
Georgia-Pacific Corp. would be at the top
of the list. The company's phenomenal
growth, starting in 1928 and bucking the
Great Depression. By the 1970s G-P's
Indonesia timber operation became that
nation's largest employer. Today Owen
Cheatham is known as a business titan.
He is the pride of Augusta Georgia.
Bernie Marcus:
Home Depot
• Bernie Marcus and Arthur Blank
opened the first Home Depot stores
in Atlanta on June 22, 1979.
• Within the first 5 years, the Home
Depot had stores in Georgia
,Florida, Louisiana, Texas, and
Alabama.
• Arthur Blank is the owner of the
Atlanta Falcons and has worked to
make the team a center of pride for
the city.
• Bernie Marcus donated $200
million to build the Georgia
Aquarium.
Bernie Marcus
"I believe in free enterprise," said
Marcus. "It's what made our
success possible. And I want to
ensure its strength, so that free
enterprise can provide the
opportunity for success to millions
of other people."
Bernie Marcus
He was the driving force behind the
Georgia Aquarium—the largest in the
world—which has generated roughly $6
billion for the greater Atlanta
metropolitan area.
With a focus on the health of children and
military veterans, he has long supported
medical research, making major
contributions in the areas of autism and
neurological, spinal, and brain injury.
His most recent major endeavor is the Job
Creators Alliance, a group of business
leaders seeking to promote and preserve
free enterprise for succeeding
generations.
Arthur Blank
Sources of State Revenue
• Georgia must work Each year from
a budget that outlines sources of
income for the state, called
revenues, and plans for spending
those funds, called expenditures.
• Georgia works under 3 types of
budgets-an Original budget
approved for a year, an amended
budget, and a supplementary
budget.
• Georgia’s revenues come from 3
basic sources-state funds, federal
funds, and special fees collected
by agencies.
• Georgia’s budget planners base
their plans on federal and state
funding sources.
• Those source include income
taxes,sales taxes, other taxes and fees,
lottery receipts, indigent care trust
funds ,and tobacco settlement funds.
• About 90% of Georgia’s revenue comes
from taxes.
• The major source of revenue for local
goverments is also taxes.
• About 36% of their revenues were from
property taxes
Distribution of State Revenue
• The Government pays for
services with the revenues they
collect.
• At the state level,the largest
expenditure is for education.
• Other expenditures include the
wages and salaries of
government emloyees, public
safety, transportation, and intrest
on the money the state borrows.
• Local governments also make
expenditures for education plus
police and fire protection,
libraries, parks, and water and
sewer systems.
Georgia when it was a colony
• When Georgia’s colony
was started it was
expected to produce
silk, cotton dyes, and
wine.
• Problem: The soil
• Eventually, the colonists
began growing more
suitable crops, such as
rice indigo, and wheat,
and making wood
products.
• Cotton was introduced
in 1786, and after the
cotton gin was invented
the agricultural sector
dominated the south
economy.
Georgia’s Cash Crops:
Rice, Wheat, and cotton
The textile industry
• Henry Grady’s New
South introduced
industry to the south.
• One of Georgia’s first
industries was textiles.
• By 1890, Georgia’s
textile industry
produced over $12.5
million worth of goods.
Georgia’s forests and the economy
• Georgia’s rich
forests were turned
into lumber to build
new factories, mills,
and housing and the
raw materials that
wound up in a
variety of products,
from furniture to
the naval stores
used in ship building
to pulp and paper.
Personal Money Management Choices
• Everyone makes choices on what
to do with their income.
• Savings is the income that a
person has not spent after buying
things he or she wants. It is an
amount put aside for later.
• Investing involves putting money
aside in order to receive a greater
benefit in the future.
• Often that greater amount is a
certain amount of interest.
• Credit is extremely useful to the
economy.
• Business uses credit regularly,
either by borrowing from a bank
or issuing corporate bonds.
DID YOU KNOW?
IN THE BEGINNING: BARTER
Barter is the exchange of resources
or services for mutual advantage,
and the practice likely dates back
tens of thousands of years, perhaps
even to the dawn of modern
humans. Some would even argue
that it's not purely a human activity;
plants and animals have been
bartering—in symbiotic
relationships—for millions of years.
In any case, barter among humans
certainly pre-dates the use of money.
Today individuals, organizations, and
governments still use, and often
prefer, barter as a form of exchange
of goods and services.
• 9000 - 6000 B.C.: CATTLE
• Cattle, which throughout
history and across the globe
have included not only cows
but also sheep, camels, and
other livestock, are the first
and oldest form of money.
With the advent of
agriculture also came the
use of grain and other
vegetable or plant products
as a standard form of barter
in many cultures.
• 1200 B.C.: COWRIE SHELLS
• The first use of cowries, the
shells of a mollusc that was
widely available in the
shallow waters of the
Pacific and Indian Oceans,
was in China. Historically,
many societies have used
cowries as money, and
even as recently as the
middle of this century,
cowries have been used in
some parts of Africa. The
cowrie is the most widely
and longest used currency
in history.
• 1000 B.C.: FIRST METAL MONEY
AND COINS
• Bronze and Copper cowrie
imitations were manufactured by
China at the end of the Stone Age
and could be considered some of
the earliest forms of metal coins.
Metal tool money, such as knife
and spade monies, was also first
used in China. These early metal
monies developed into primitive
versions of round coins. Chinese
coins were made out of base
metals, often containing holes so
they could be put together like a
chain.
• 500 B.C.: MODERN COINAGE
• Outside of China, the first coins
developed out of lumps of silver.
They soon took the familar round
form of today, and were stamped
with various gods and emperors to
mark their authenticity. These early
coins first appeared in Lydia, which
is part of present-day Turkey, but
the techniques were quickly copied
and further refined by the Greek,
Persian, Macedonian, and later the
Roman empires. Unlike Chinese
coins which depended on base
metals, these new coins were made
from precious metals such as silver,
bronze, and gold, which had more
inherent value.
• 118 B.C.: LEATHER
MONEY
• Leather money was
used in China in the
form of one-footsquare pieces of white
deerskin with colorful
borders. This could be
considered the first
documented type of
banknote.
• A.D. 800 - 900: THE
NOSE
• The phrase "To pay
through the nose"
comes from Danes in
Ireland, who slit the
noses of those who
were remiss in paying
the Danish poll tax.
• 806: PAPER CURRENCY
• The first known paper banknotes
appeared in China. In all, China
experienced over 500 years of early
paper money, spanning from the
ninth through the fifteenth century.
Over this period, paper notes grew
in production to the point that their
value rapidly depreciated and
inflation soared. Then beginning in
1455, the use of paper money in
China disappeared for several
hundred years. This was still many
years before paper currency would
reappear in Europe, and three
centuries before it was considered
common.
• 1500: POTLACH
• "Potlatch" comes from a Chinook
Indian custom that existed in many
North American Indian cultures. It is
a ceremony where not only were
gifts exchanged, but dances, feasts,
and other public rituals were
performed. In some instances
potlatch was a form of initiation into
secret tribal societies. Because the
exchange of gifts was so important in
establishing a leader's social rank,
potlatch often spiraled out of control
as the gifts became progressively
more lavish and tribes put on larger
and grander feasts and celebrations
in an attempt to out-do each other.
• 1535: WAMPUM
• The earliest known use of
wampum, which are strings
of beads made from clam
shells, was by North
American Indians in 1535.
Most likely, this monetary
medium existed well
before this date. The Indian
word "wampum" means
white, which was the color
of the beads.
• 1816: THE GOLD STANDARD
• Gold was officially made the standard
of value in England in 1816. At this
time, guidelines were made to allow
for a non-inflationary production of
standard banknotes which
represented a certain amount of
gold. Banknotes had been used in
England and Europe for several
hundred years before this time, but
their worth had never been tied
directly to gold. In the United States,
the Gold Standard Act was officialy
enacted in 1900, which helped lead
to the establishment of a central
bank.
• 1930: END OF THE GOLD
STANDARD
• The massive Depression of the
1930s, felt worldwide, marked
the beginning of the end of the
gold standard. In the United
States, the gold standard was
revised and the price of gold
was devalued. This was the first
step in ending the relationship
altogether. The British and
international gold standards
soon ended as well, and the
complexities of international
monetary regulation began.
• THE PRESENT:
• Today, currency continues to
change and develop, as
evidenced by the new $100
U.S. Ben Franklin bill.
• THE FUTURE: ELECTRONIC
MONEY
• In our digital age, economic
transactions regularly take
place electronically, without
the exchange of any physical
currency. Digital cash in the
form of bits and bytes will
most likely continue to be
the currency of the future.