Eden C. Stein
Introductory Material
In order to begin studying the complex issue of economic inequality students must have a basic introduction to money and the economy. The fifteen minute educational video “A World of Money,” not only covers the history of the use of money from bartering in ancient times through the innovations of coin and paper money but also introduces essential terms such as supply and demand and inflation.
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The video uses an engaging format through interviewing teens, showing footage of the Masai who continue to barter animals for their needs, and explains how humans developed from using tokens such as seashells and salt to the electrum used in Lydia to coins in Ancient Greece and Rome. With simulation there is an explanation of why Roman emperors began to inflate their money leading to the fall of a great empire and the return of most of the world to a barter system. Subsequently, it is shown how paper money re-emerged in China and then jumps to an explanation of what determines prices. The viewer sees how supply and demand can result in the lowering of some prices such as for technological innovations, as well as how governments abandoned the gold standard and printed more and more money resulting in inflation. This video will be followed by open ended response questions for the students to discuss.
Students will require a more thorough explanation of economic systems with specific emphasis on market economy and its advantages and disadvantages. This introduction will serve the important function of pre-reading for the core text of the unit. Students will first be introduced to the traditional economic system revolving around a family or tribe, producing only what they need with little surplus. Second will be the command economic system where the government determines what is produced as well as prices and owns most of the land and businesses. Finally, the market system will be discussed, with its features of control by the people, the force of competition, and the laws of supply and demand. Students will have the opportunity to compare and contrast the three systems and be introduced to the concept of a mixed system which is applicable to much of the world today.
Quality of Life
Direct instruction may be necessary in order for students to appreciate the important nature of the phenomenon of economic inequality as differentiated from poverty. Straightforward concern about poverty seeks to help the neediest members of our society without concern about how much money those who are at the top of the economic ladder have. In contrast, concern over economic inequality focuses on the disproportionate amount of income and wealth a small minority of the people at the top of the economic distribution are accumulating while the poorest and middle class improve their circumstances marginally or not at all. Economic inequality has consequences for a society independent of poverty which are addressed later in the unit. In order to analyze the topic of economic inequality it will be essential to thoroughly address the topic of quality of life. The importance of objective measures such as infant mortality, life expectancy, birth rate, death rate, literacy rate, poverty rate, per capita income, gross domestic product and unemployment rates must be recognized, because the difference these measures will demonstrate objectively the negative consequences of economic ineuqality. At this point, it will be advantageous to conduct some interdisciplinary lessons with the math teacher regarding exactly how these indicators are calculated and examining data on various countries to compare and contrast them. Small groups can be assigned a specific country to examine and then the whole class can discuss the comparison and hypothesize regarding reasons for the differences. This will be an excellent follow up to students’ study of world cultures from the previous academic year.
The American Dream
Prior to reading about economic inequality and reading our core text, students will benefit from an introduction to the concept of The American Dream
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. The following definition can be provided:
“For those willing to work hard and take advantage of their opportunities, there is the expectation of a prosperous and fulfilling life. The United States has long been epitomized as a land of opportunity, regardless of one’s situation in life.” (p.1)
The students should unpack this definition and discuss exactly what is meant by prosperity, fulfillment, and opportunity. The idea of economic mobility can be discussed, and data examined through the use of an engaging interactive from The New York Times.
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The interactive allows for the comparison of black, white, Asian American and Hispanic girls and boys from lower, middle and high-income groups over time. This will also serve the function of introducing students to the idea that income itself as well as income mobility can be at least partially influenced by race in our society.