2.3 The World's Money-How the International Monetary System Works (or Does'nt)
Essential Question(s)-
Part I-How does the United States economy and the U.S. dollar matter so much? How do you measure economic success?
After we have learned the basic terms and concepts associated with economic value and monetary practices we will turn our study to the American economy, the income profile of the American people, and the close brush with a complete economic collapse that we experienced in 2008.
This system has become increasingly and alarmingly complex. During our most recent and second worst financial collapse the complexity of the world's economy was revealed. We will watch the introduction segment from a Frontline documentary to introduce this topic.
Please read this article about income disparity and people's perceptions about wealth. After you have read this we will watch a short video.
What do you think of wealth disparity? Is it too high? Too low? Just right? How should we address the issue of concentrated wealth and broad poverty? Go to the Google Classroom platform to answer this question.
The Big Short
The world's economic system has experience several devastating bubbles and crashes. Please open this link to see some of the most devastating effects.Now we will watch a short "explainer" that will give you a sense of what has happened.
The most recent in 2008 was based on the overvaluing of real estate. This is captured in the somewhat fictionalized movie "The Big Short". Here is the trailer:
Part II - What is the best way to judge progress for individuals and nations? What is the difference between Gross National Product and Per Capita Development?
Simplifying economics is very hard and very important. Comparing two time periods, the changes that have taken place, and the varied economic systems requires a common vocabulary. Terms such as these are critical to understanding the world's economy.
Comparing Gross National Product with Gross Domestic Product
Write down the definitions of these terms on your response paper.
Gross National Product
Per Capita Development
Inflation
Consumer Price Index
Please visit the Measuring Worth site to define the terms and familiarize yourself with the ways that they can be used.
Once you have defined each of those terms you will create a side by side comparison of two countries using economic data over the course of five years. Choose three specific criteria (exports, GDP, CPI) and place them side by side. Evaluate how this information can be used to project their future and consider how these data points can be influenced. For example, take a look at a European country like Portugal and an emerging country like Angola (a former Portuguese colony) from 2007-2012. Which one is improving and why? Which one is lagging behind? Where can challenges and benefits be found? Be prepared to make a case to invest in one of the countries rather than the other. The CIA World Fact Book can also serve as a valuable resources.
Use this link to investigate the economic data related to your assigned countries.