Economics

Deep Dive Toolkit

There are many different types of economic systems used across the world. Most economies are a unique blend of market economics and central planning. While the vast majority of economic transactions today are characterized by the exchange of goods for currency, other economies, like that of Papua New Guinea’s Kula Ring, envision exchange in a different way. In the Kula Ring, trade exists to facilitate the tradition of systematic gift-giving.

Despite their differences, all systems of exchange are based upon the belief that interdependence is necessary to the functioning of society, whether that be in accessing essential goods or upholding social tradition.

Quick Study:
Have Only a Few Minutes to Learn More About Economics?

Further Resources

The Undercover Economist by Tim Harford

Thinking Fast and Slow by Daniel Kahneman

Naked Economics: Undressing the Dismal Science by Charles Wheelan

Basic Economics: A Common Sense Guide to the Economy by Thomas Sowell

MIT Principles of Microeconomics Lecture Series

The Armchair Economist by Steven Landsburg

Take Action!

Addressing economic inequality requires a global response. Here are some organizations that you can get involved with!

Oxfam America Take Action

UNICEF USA Clubs Program for youth

Concern Worldwide’s Concern Active 

CARE Action Campaigns

The Hunger Project Youth in Action 

Action Against Hunger School Fundraisers for Charity

“Currency” photo by Ethan McArthur on Unsplash
“Screens” photo by NICHOLAS CAPPELLO on Unsplash

Economic Inequality

Economic inequality refers to the uneven distribution of wealth in a society. It is most commonly measured by the Gini coefficient, which ranges from zero to one, with a value of zero indicating complete income equality and a value of one corresponding to a situation in which one household earns all of a country’s income. Due to factors such as globalization, technological advancement, and the decline of unions, income inequality has been on the rise in many countries since the 1980s (click here to see the latest numbers on income inequality across the world). In most societies, economic inequality does not affect everyone equally. For example, in the US, black women are paid just 62 cents to every dollar earned by white men. Learn more about economic inequality by exploring the resources provided below. 

QUICK STUDY

Systemic Racism Explained 

The Unequal Opportunity Race

Six Policies to Reduce Economic Inequality by John A. Powell

Quantifying America’s Gender Wage Gap by Race/Ethnicity

The Consequences of Economic Inequality by Nicholas Birdsong

Short Video: A Look at Income Inequality by TIME

DISCUSSION QUESTIONS

Do you think high levels of economic inequality hurt everyone? How so?

How do factors such as race and gender affect people’s economic opportunity?

How does economic inequality affect children? Are all children born with the equal opportunity to succeed economically?

Is economic inequality related to other aspects of society such as education and the criminal justice system?

What policies can governments implement to reduce economic inequality?

FURTHER READING

Capital in the 21st Century by Thomas Piketty 

“How Can Governments Respond to Income Inequality?” from the OECD library 

Why Nations Fail by Daron Acemoglu and James A. Robinson

Evicted: Poverty and Profit in the American City by Matthew Desmond

The Price of Inequality by Joseph Stiglitz

Globalization & Global Economic Inequality

Economic globalization has led to many positive impacts, including more efficient markets, faster transnational information flows, and ultimately higher standards of living. However, the wealth that globalization has generated is not equally spread out across the world. In fact, according to the UNDESA World Social Report 2020, income inequality has increased in 71 percent of countries over the past 25 years. Covid-19 is exacerbating these inequalities, as many people in poorer areas of the world are unable to afford or access adequate healthcare. Growing economic inequality in the era of globalization underscores the fact that interdependent relationships are not always equal.

QUICK STUDY

What is Globalization?

How Does the Global Economy Work?

Watch this recent TED interview with Kristalina Georgieva, managing director of the IMF, about the global economic response needed to address Covid-19.

Globalization: Good or Bad?

How will the world’s priorities when it comes to the global economy? Watch this conversation by the IMF.

DISCUSSION QUESTIONS

How has globalization positively and negatively impacted the world?

Further discussion questions can be found on the Carnegie Council for Ethics in International Affairs’ website, here.

How will the global economy be impacted by the Covid-19 pandemic?

How has the  South Asian economy been impacted by the pandemic?

What does gender disparity look like in the economic sphere?

FURTHER READING

Disposable People by Kevin Bales

Development as Freedom by Amartya Sen

The Haves and the Have-Nots: A Brief and Idiosyncratic History of Global Inequality by Branko Milanovic

A Beginner’s Guide To The World Economy by Randy Charles Epping

Interdependence Web Grocery Store exercise

In our increasingly globalized world, it is very rare for an individual or a family to survive completely on their own. Our world is so economically integrated that the production and transportation of the things that we use in our daily lives require a global effort. For example, when you buy an apple at the grocery store for $1.50, that interaction between you and the cashier is the last in a long line of exchanges that got that apple into your hand. Before arriving at your grocery store, the apple was picked by an apple picker, transported by a truck driver, and placed in a heap for you to grab by a grocery clerk. Pick a food item that you often buy at the grocery store and consider the series of exchanges that got that item into your hand. Recognize that even in this small way, your experience depends on so many other people.

Check out an animation of this exercise.

After completing the exercise and watching the animation, consider these two questions:

  1. How has globalization positively and negatively impacted the world?
  2. And, what surprised you about this exercise and animation?

OneShared.World IDEA School

The IDEA (Interdependent Education for Action) School is committed to building an interdependent society embracing economic, environmental, gender and racial justice.

© 2021 IDEA School, a program of OneShared.World.
All artwork displayed on this website is the exclusive property of the artist and may not be downloaded or used in any manner without the written permission of the OneShared.World IDEA School.

Privacy Preferences

When you visit our website, it may store information through your browser from specific services, usually in the form of cookies. Here you can change your Privacy preferences. It is worth noting that blocking some types of cookies may impact your experience on our website and the services we are able to offer.

Click to enable/disable Google Analytics tracking code.
Click to enable/disable Google Fonts.
Click to enable/disable Google Maps.
Click to enable/disable video embeds.
Our website uses cookies, mainly from 3rd party services. Define your Privacy Preferences and/or agree to our use of cookies.