Throughout the world and across centuries, inflation and unemployment have affected the ability of people to maintain their standard of living. Standard of living is defined as the level of material comfort in a society as measured by the goods, services, and luxuries people can afford. In Elizabethan England and in 20th century Latin America, inflation reduced the purchasing power of currency, making it difficult to obtain necessary goods. Similarly, high unemployment in postwar Europe and 1980s America cut people’s income, thus reducing their standard of living. How individuals and governments have responded to these conditions has determined their long-term effects.

You will be assigned topics that reflect the issues surrounding the impact of inflation and unemployment on citizens’ standard of living. Use what you have learned to write an Analytical Essay that compares and contrasts these conditions in different areas of the world. To prepare your essay, you will research historical examples of unemployment and inflation in the United States, Europe, and Latin America.

Look at the photograph below. Answer the following questions on a separate sheet of paper.

Despite high unemployment rates, this 1937 poster depicted American economic success.

• What is meant by “There is no way like the American way”, as depicted in the poster?
• Judging by the poster, what are some elements of a high standard of living?
• How might unemployment or inflation affect Americans’ standard of living?

Use the Daily Life through History articles listed on the right to research historical examples of unemployment and inflation in Europe, Latin America, and the United States. As you read, keep in mind the ways in which people’s standard of living was affected. This includes the level of material comfort people could attain, the goods and services they were able to afford, and the ways in which they spent their leisure time.

Use the Cause and Effect Chart to organize your information. In the center box, write Inflation and Unemployment. Choose three historical examples and write their causes to the left of the box, and their effects to the right of the box.

Develop your essay. As you write, be sure to note the ways in which peoples’ standards of living were affected by economic and social conditions. You might also mention, if applicable, the ways in which governments intervened in order to solve or alleviate problems.

Your teacher will use these questions to assess your performance:

• Did you compare and contrast three historical examples of inflation and unemployment?
• Did your essay include a clear thesis statement?
• Did you support your statements with historical facts and examples?
• Did you organize your essay logically and clearly?