Is Capitalism Good for the Poor?

The lesson plans and student activities in Is Capitalism Good for the Poor? (CAP) have been carefully designed and written by distinguished economists, including a Nobel Laureate, award winning curriculum writers, and classroom teachers to engage students in discussions and study of some of the most important economic issues of our time. The title question is intentionally provocative to stir interest and thought, and the answer—yes or no—depends on the particular features of a nation’s institutions and how we measure and perceive poverty. Poverty, capitalism, economic growth, income distribution, markets, property rights, rule of law, and moral values are among the many topics addressed. CAP Lessons Lessons may be viewed and printed as web pages or downloaded from the links below. Lessons are designed to stand alone, or to be used together as the framework for a unit on capitalism and poverty in the developing world. Applicable economics content standards are identified. All FTE materials may be freely copied and edited for classroom use.

• Historical Overview
• Lesson 1:  Defining Terms:  Poverty and Capitalism
  • Lesson 1 Part 1:  What is Poverty and Who Are the Poor?
    • Classroom Activity:  What is Poverty? A KWL Exercise
    • Classroom Activity:  Web Quest — What is Poverty and Who are the Poor?
    • Appendix 1:  Relative Poverty and Distribution of Income  (download .doc file)
    • Appendix 2:  Social Indicators of Poverty (download .doc file)
  • Lesson 1 Part 2:  Capitalism – Institutional Building Blocks
    • Classroom Activity:  Will the Real Capitalism Please Stand Up?
• Lesson 2:  Property Rights and the Rule of Law
  • Classroom Activity:   You’re the Economist (demonstration video and download)
  • Classroom Exercise:  The Rule of Law Download (.doc)
  • Classroom Exercise:  Australia and Argentina – A Study in Contrast Download (.doc)
• Lesson 3:  Beneficiaries of Competition
  • Classroom Activity:  The More, the Merrier
• Lesson 4:  How Incentives Affect Innovation
  • Classroom Activity:  It’s Not Rocket Science
  • Includes 3 exercises:
    • “Distinguishing Between Invention and Innovation”
    • “If the Soviets Were So Smart, Why Weren’t They Rich?”
    • “No More Slide Rules – The Costs and Benefits of Innovation”
• Lesson 5:  Character Values and Capitalism
  • Classroom Activity:  The Ultimatum Game
• Lesson 6: Capitalism and Economic Freedom
  • Classroom Activity: How Free is That Country?
• Lesson 7: How Do Institutions Affect Productivity and Standard of living?
  • Classroom Activity: Who Wins and Loses with Competition?