Lesson Plan # 3 - The Cost of Wages
Teacher Background
When using numerical values alone, the wages earned by modern workers seem astronomical in comparison with those of workers of earlier times. However, upon closer inspection, one usually finds that the numerical values are relative, that wages have remained fairly constant as compared to the overall cost of living. Financial figures used in this lesson are intended to promote the value of training and education by showing that, no matter what the era or dollar figure, skilled laborers earn more than unskilled workers.
Goal
After comparing selected actual wage and material costs from 1850, the 1930's and the present day, students will conclude that wages are relative to the overall cost of living and that skilled workers earn more than unskilled labor.
Objectives
- To show that a dollar figure does not represent the true value of wages,
especially when comparing wages from different eras.
- To reinforce the importance of education or technical training to maximize
individual earning capabilities.
- To enhance math skills as students compare wages of several eras, manipulate
figures into corresponding (hours, days, etc.) and show relativity to the
material costs of the appropriate era.
This activity addresses the following Maryland Learning Objectives
For grades 4 and 5
#1 Social Studies Skills
Students will demonstrate an understanding of historical and current events using chronological and spatial thinking, develop historical interpretations, and frame questions that include collecting and evaluating information from primary and secondary sources.
- Apply and organize information specific to social studies disciplines by
reading, asking questions, and observing. (MLO 1.2)
- Interpret and organize primary and secondary sources of information including
pictures, graphics, maps, atlases, artifacts, timelines, political cartoons,
videotapes, journals, and government documents. (MLO 1.3)
For grades 6-8
#1 Social Studies Skills
Students will demonstrate an understanding of historical and current events
using chronological and spatial thinking, develop historical interpretations,
and frame questions that include collecting and evaluating information from
primary and secondary sources.
- Evaluate and organize information specific to social studies disciplines
by reading, asking questions, investigating, or observing. (MLO 1.2)
- Interpret, evaluate, and organize primary and secondary sources of information
including pictures, graphics, maps, atlases, artifacts, timelines, political
cartoons, videotapes, journals, and government documents. (MLO 1.3)
#4 Economics
Students will develop economic reasoning to understand the historical development
and current status of economic principles, institutions, and processes needed
to be effective citizens, consumers, and workers participating in local communities,
the nation, and the world.
- Analyze opportunity costs and trade-offs in business,
government, and personal decision-making. (MLO 4.2)
- Analyze the relationship between the availability
of natural, capital, and human resources, and the production of goods and
services now and in the past. (MLO 4.3)
Suggested Background Reading
"The Costs of Labor" by
Bob Heath, an article outlining the traditional apprentice program for blacksmiths
and the relative value of products, found online at www.anvilmag.com/smith/costofla.htm
Materials Needed
- Financial Declarations of 1850 Blacksmiths in Frederick County, MD (provided)
- Infirmary hardware price list (provided)
- Additional Information for Lesson 3, a narrative describing the location
and function of the Misty Mount Infirmary.
- Job Application and Completion Record from Catoctin RDA (provided)
- Current data showing wages paid to workers in
your area. (Figures taken from USA JOBS, found online at www.usajobs.com,
provide a good representation.)
- Current cost of a keg of nails obtainable from a local hardware store.
Activity
- Summarize the "Cost of Labor" article for students, emphasizing that blacksmiths
learned the trade through a lengthy apprenticeship program and the number
of hours worked on a typical day. Information taken from this article can
be used to show how shipping, distribution and the number of holders that
goods pass through affect the final price of the product.
- Distribute the "Financial Declarations" table to students. Using the information
provided, have children figure the hourly wage of employees, and the shop
owner. To do this successfully, students will take the average number of hours
worked on a typical day, multiply by the number of days worked in the month
and divide this figure into the monthly wage. It is generally assumed that
American craftsmen worked 12 hours per day, 6 days per week. It will be necessary
to figure the number of hours worked per year to determine the wage of the
shop owner. It is likely that the owner worked at least as many hours as the
employees.
- After determining the average hourly wage for employees and shop owners,
compare this to the price of nails as presented in the excerpt from John Benson's
ledger. Have students compute how many pounds of nails can be purchased for
each hour of work.
- Distribute the "Job Application and Completion Record" and "Infirmary Hardware"
sheets to the students. By using the number of hours worked for skilled, intermediate
and unskilled workers, have students determine the hourly wage for each. Using
the guideline that a keg contains 100 pounds of nails have them determine
how many pounds of nails could be purchased for each hour of work in the 3
labor categories.
- A hasty evaluation of the results of steps 3 and 4 is misleading. An unskilled
worker in the 1930's could purchase more nails with an hour's wage than the
skilled blacksmith of 1850. Lead students in a brainstorming session, asking
what general changes could have changed the relative value of labor to the
cost of nails. After discussion, explain how the value of certain items was
deflated by the advent of mass production techniques and improved transportation.
- Using current data, have students compute how many nails a skilled and unskilled
worker could purchase with today's hourly wage. Since transportation and production
are similar to the 1930's the number will be somewhat similar to the 1930's.
This may be an opportune time to introduce the subject of net and gross wages
to older students. Using net income for the modern worker will give a more
accurate comparison. The net income was very similar to the gross for 1930's
workers.
- After figures are compared, ask students to deduce
whether the relative value of wages has risen, fallen or remained fairly constant
for skilled workers over the last 150 years. Conclude the classroom session
with a brainstorming session/discussion of economic factors other than the
price of nails that may more accurately reflect the relative value of wages.
Follow-up Activity
- Using the list of economic factors generated in
Step 7 above, assign a specific item to each student/group for research. Ask
students to determine the average cost of the item in 1850, 1930 and today
using the Internet and traditional references. (Cost of a loaf of bread, a
pair of shoes or housing are potential topics.) After determining the price,
have students recalculate the relative value of wages.
- After determining the relative value of wages, have students write a short essay explaining factors that may have skewed the comparison, i.e., introduction of foreign labor, taxes, variety of models.
- Have students develop a computer spreadsheet using the Blacksmith's Daily Ledger provided. The students will recalculate the ledger for 1930 and today by multiplying the 1842 figures by the factors determined in #1, making comparisons in adjacent columns. Additional years can be added to make the project more challenging. A close examination of the depression era will show students that the cost of living can drop dramatically when many people are unemployed and wages tumble for those who are still working.
Additional Information
Lesson Plan 3
The Misty Mount Infirmary
Camp Misty Mount was built in 1936 by Works Progress Administration (WPA),
the first of 3 organized group camps that were completed in the Catoctin Recreational
Demonstration Area. Cabins, made of chestnut lumber salvaged from the local
area, were clustered in 3 units. The Dining Hall and Infirmary were built in
the center of the camp. The camp was intended for summer use. Cabins contained
only beds and a single light fixture.
The Infirmary, located directly behind the Dining Hall, has multiple bedrooms,
running water and is heated. Medical facilities, like the infirmary, were particularly
important in the 1930's when polio, tuberculosis and other communicable diseases
afflicted large groups of the population. This building had 6 patient beds,
a private room and bath for the nurse, a small kitchen and a waiting room. A
substantial amount of hardware was required for this building because of its
size and complexity. The Map of Camp Misty Mount included in Lesson Plan #5
shows the exact location and relative size of the infirmary.
