Understand how unemployment and inflation affect standard of living; identify causes and effects of unemployment and inflation; compare and contrast the social impact of unemployment and inflation in different societies throughout history.

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. Inflation and unemployment have a direct impact on people’s ability to maintain their standard of living. In Elizabethan England, rising inflation made it difficult for small landowners to afford farm maintenance. In the 1980s and 1990s, debt and inflation led Latin American leaders to cutback social welfare programs, which devastated the lives of many citizens. In the 1980s, layoffs and inflation prevented many Americans from buying houses or cars. The ways in which people and governments have responded to economic hardships has determined their long-term effects.

• CA  E 12.3: 2, 3; E 12.5: 2 Historical Interpretation: 1
• TX  113.32(12): e; 113.32(13): a; 113.35(6): b; 113.38(1): b
• FL  SS.D.2.4: 5
• NCSS  VII(HS): b, f

2 class periods

• Activity Sheet, Maintaining a Standard of Living
• Graphic Organizer, Cause and Effect Chart
• Analytical Essay Rubric

Use the instructions below to guide students in writing an Analytical Essay.

How have inflation and unemployment affected the standard of living of individuals?

Compare and Contrast Students will write an Analytical Essay in which they compare and contrast the ways in which inflation and unemployment in Europe, Latin America, and the United States have affected the standard of living of individuals in each country.

Have students research the topic using the provided links. Encourage them to use the suggested graphic organizer as they read the articles.

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

To start students thinking about the impact of inflation and unemployment on daily life, have them examine the photograph.

Key questions students should answer are:

• 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?

Distribute the Student Activity sheet. Tell students that they will research the following topics.

• Inflation in Elizabethan England
• Work in 18th Century England
• World War I: Labor and Inflation in Europe
• World War I: Taxes, Prices, and Wages
• Rural/Urban Divide and Poverty in Latin America
• 20th Century Instability in Latin America
• Currency and Inflation in the Early American Republic
• Inflation, Prices and Standard of Living, 20th Century U.S.
• Inflation and Unemployment in the U.S., 1970s
• Inflation and Unemployment in the U.S., 1980s-90s

Remind students that their essay should compare and contrast the effects of inflation and unemployment in different historical periods in Europe, Latin America, and the United States.

Use the Analytical Essay Rubric to assess students’ performance.

Have students reflect on their performance and use the list of expectations to judge how well they met the criteria.

Ask students: Which society, in which period, was most affected by inflation and unemployment?

Newspaper Editorial Have students use Daily Life through History to conduct research and write a newspaper editorial from the 1980s in which they explain how inflation and unemployment has affected their life, and what measures should be undertaken to alleviate the problem.

Critical Thinking: APPLY