How do prosperous societies differ from unprosperous societies in addressing the issue of scarcity? Why are individual liberty and limited government important in expanding prosperity?

Video supplements additionally published on PolicyEd.org a product of Hoover Institution, Stanford University. To view them in their original format, click here.

Guiding Questions

• How do prosperous societies differ from unprosperous societies in addressing the issue of scarcity?
• Why are individual liberty and limited government important in expanding prosperity?

Objectives

• Students will define prosperity, scarcity, and choice.
• Students will explain how natural rights, laws, and individual actions impact prosperity.
• Students will identify the relationship that immediate choices have on life goals.  
• Students will evaluate examples of choice and prosperity within a variety of governments.

Student Resources:

• Hoover Institution Videos & Viewing Guides
  • Prosperity
  • Scarcity
  • Choice
• Optional Student Handout
• Glossary
• Background Reading to Countries
• Background to the Jones Act of 1912, the Smoot–Hawley Tariff Act of 1930, and the North American Free Trade Agreement (NAFTA) of 1990.

Teacher Resources:

• Student Handout Answer Key
• Freedom House rating
• Freedom Index
• Human Freedom Index

Note: The above links can also be used to support students in the analysis questions in the Explore section of this lesson.  Select certain data as necessary to help illustrate the connection between free societies and economic prosperity.

Facilitation Notes

• Depending on the level of scaffolding needed for your students, consider distributing the video viewing guides for added support. 
• When discussing “time” as a scarce resource, note that everyone has the same number of hours in a week (168). The fact that time is limited makes it scarce. Good “time-management” is helpful but cannot increase the number of hours in a week.
• When discussing “jobs” for the “consequences of the scarcity of oil,” ensure students understand the process of “creative destruction.” Economist Joseph Schumpeter argued that a healthy economy actually destroys jobs, by creating new jobs that make less efficient jobs obsolete. When looking at the assignments under “Assess and Reflect,” use your best judgment as to what best suits your students.  You have an option to assign both the “self-reflection” and the “societal reflection,” or just one based on the needs and make-up of your class.