3/26/14

“Adjusted Gross Income”

1. How is your AGI different from the amount of money you earn in a year?

2. What does the IRS use your AGI for?

1. Adjusted Gross Income (AGI)

• Total income minus all of your deductions

• Example: Income = $50,000• Standard deduction = $6,100

• AGI = $50,000 – $6,100 = $43,900

2. What does the IRS use your Adjusted Gross Income for?• AGI is the amount of $$ your are taxed on

(basically)

3/26/14

Econ. Agenda

1. Review AGI math problems # 1 – 3

2. Discuss Russian economic sanctions & whether you think they are going to work. (class discussion)

HW: None!

Where is Russia? Where is Ukraine? Where is Crimea?

This is where Ukraine is!

What is happening in Ukraine right now?

Source: http://www.bbc.com/news/world-europe-26476314

Crimea: HistoryCrimea was part of Russia/U.S.S.R. until 1954 when the Soviet leader Nikita Khrushchev gifted it to Ukraine.

Source: http://www.bbc.com/news/world-europe-26476314

Crimea: History• That didn't matter when this was all Soviet

territory.

• 1991 - the Soviet Union collapsed. And overnight, Russia and Ukraine became separate countries, with Crimea still in Ukraine.

Source: http://www.bbc.com/news/world-europe-26476314

Ukraine: East vs. West• Western Ukraine tends to identify with Europe.• Eastern Ukraine tends to identify with Russia.

Who does Crimea seem to identify with?

Ukraine: What has happened recently?• late Jan. 2014 – protests erupt over rule of pro-

Russian president Victor Yanukovych

• Yanukovych decided to ally Ukraine more with Russia than with the European Union.

Source: http://www.bbc.com/news/world-middle-east-26248275

Source: http://gokicker.com/2014/03/03/ultimate-super-helpful-guide-tense-situation-ukraine/#!ArejJ

Ukraine: What has happened recently?• Feb. 2014 – protests continue & Ukrainian govt.

violently cracks down on protesters• 18 dead & hundreds wounded on Feb. 18th

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: What has happened recently?• Feb. 20th – protests continue…• 88 people killed in 48 hours. Govt. snipers killing

protesters…

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: What has happened recently?• February 22nd: President Yanukovych

disappears & protesters take control of presidential buildings.

• Parliament votes to remove president from power & names interim president until elections can be held.

• An arrest warrant is issued for former president Yanukovych.

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: What’s the Problem?• February 27 – 28: Pro-Russian gunmen seize key

buildings in the Crimean capital. Unidentified gunmen in combat uniforms appear outside Crimea's main airports.

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: What’s the Problem?

• March 1: Russian parliament approves Vladimir Putin's request to use force in Ukraine to protect “Russian interests.”

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: What does Russia Want?

• March 7: Russia says it will support Crimea if the region votes to leave Ukraine & join Russia.

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: What does the U.S. think?• March 12: Barack Obama pledges to stand with

Ukraine (& thus against Russia) during a meeting with interim Ukrainian Prime Minister Arseniy Yatsenyuk at the White House.

Source: http://www.bbc.com/news/world-middle-east-26248275

Ukraine: So, did they vote…?• March 16: Exit polls from Crimea's secession

referendum say 93% of voters support a proposal for Crimea to join Russia.

• However, there are reports of pro-Ukrainians boycotting the vote & voter intimidation, etc.

• Also, there are rules in Ukraine’s Constitution for how secession works,

& this did not follow those rules.

Source: http://www.nytimes.com/2014/03/17/world/europe/crimea-ukraine-secession-vote-referendum.html?_r=0

Ukraine: Why do the U.S. & the E.U. care?

• U.S. & European Union denounce the Crimean vote & Russian decision as illegitimate & illegal.

• U.S. & E.U. threaten economic sanctions & “further action” if Russia doesn’t back off.

Source: http://america.aljazeera.com/articles/2014/3/18/putin-signs-draftlawforcrimeanannexationblastswest.html

Ukraine: So, what did Putin do?• Putin & Russia signed treaty recognizing &

officially annexing Crimea as part of Russia.

Source: http://america.aljazeera.com/articles/2014/3/18/putin-signs-draftlawforcrimeanannexationblastswest.html

Ukraine: Why does this have such huge global implications?

• U.S., E.U. & their allies = “The West”• Russia, China, & some other “Big C” Communist

countries = “The East”

Source: http://www.infiniteunknown.net/2013/06/16/iran-sends-4000-revolutionary-guards-to-aid-syrias-assad/

Economic Sanctions Against Russia

3. What are the economic sanctions being enforced on Russia right now?

4. Specifically, how have these economic sanctions affected Russia so far?