Income Inequality
Unit 2 · Lesson 2.17 · Last updated June 2026
A 45-minute lesson where students predict the U.S. income distribution using beans, analyze real data sources on income inequality, and explore government redistribution programs and their critiques.
Overview
Students use manipulatives to predict the actual income distribution in the United States, then compare their predictions with recent data. After viewing the data, they determine what they believe to be the ideal income distribution. They analyze additional data sources to support a positive statement about income inequality and are introduced to current methods and critiques of government income redistribution. Note: This lesson introduces the topic. Students who want to go deeper can continue in Lessons 2.18 and 2.19.
Video Tutorial
Learning Objectives
- Analyze data related to income inequality.
- Describe government programs that redistribute income and identify critiques of those programs.
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Materials
- Instruction Slides (display during class period)
- Plastic bags with 100 beans each (8 bags for classes of 32 or fewer; 12 bags for classes of 33 or more)
- Income Quintiles p. 5 (8 copies for classes of 32 or fewer; 12 copies for classes of 33 or more)
- Student Handout pp. 6–9 (1 copy per student)
- Data Walk Resources pp. 10–13 (8 copies single-sided for classes of 32 or fewer; 9 copies single-sided for classes of 33 or more — place copies of each source in labeled manila folders: 2 folders per source for smaller classes, 3 per source for larger classes)
- Manila folders (8 for classes of 32 or fewer; 12 for classes of 33 or more)
Lesson Sequence
Slides 2–5
- Before class: move seats into stations of 3 to 4 seats (8 stations for 32 or fewer students; 12 stations for 33 or more). Ensure seats within each group face one another. Divide students among stations — groups do not need to be exactly equal.
- Proceed to Slide 2. Distribute 1 copy of Income Quintiles and 1 bag of beans to each group. Instruct students to leave the bag untouched for now. Explain what a quintile is and identify the axes on Income Quintiles. (Additional educator tips and suggested answers are in the notes section throughout Instruction Slides.)
- Display Slide 3 and define income.
- Proceed to Slide 4. Tell students they will have 2 minutes to complete the instructions on the slide. Note: Advise students to focus on determining the percentage of income in each quintile using an approximate number of beans, rather than spending time counting individual beans. Make sure groups distribute beans based on what they think the actual U.S. income distribution is, not what they think it should be.
- Allow 2 minutes for groups to distribute beans. Tell students to keep their beans distributed on Income Quintiles — groups will return to their prediction in Step 8. Circulate to clarify questions.
- Proceed to Slide 5 and introduce the learning objectives. Pro Tip: Tell students this is a complex topic typically of great interest. The purpose is to introduce income inequality — students who want to go deeper will have the opportunity in Lessons 2.18 and 2.19.
Slides 6–24
- Progress through Slides 6–7. Ask representatives of each group to answer the questions on Slide 7.
- Advance to Slide 8. Distribute 1 copy of Student Handout to each student. Reveal the actual income distribution data and ask students to compare it with their group's bean prediction. Students write the actual distribution in the space provided on Student Handout.
- Ask students to discuss in their groups what was surprising about the actual distribution or what confirmed their thinking. Students may add notes to Student Handout.
- Direct groups to place their beans back in the plastic bag and put the bag and Income Quintiles under a desk. (These materials will not be used again in this lesson.)
- Display Slide 9. Tell students they will complete a data walk to gather evidence to support the positive statement on Student Handout (under "Data Walk Instructions"). They will make connections between the sources and other economic concepts later in the lesson. Read the Data Walk Instructions aloud.
- Distribute manila folders (each containing copies of a single source) in numerical order in a clockwise fashion, indicating where Sources 1, 2, 3, and 4 are placed. Pro Tip: Consider highlighting the data lines and their labels in different colors on Source 2 to support interpretation of a black-and-white printout. See Slide 27 for additional distribution and rotation guidance.
- Direct students to begin with the source at their station. Allow 4 minutes to review and add notes to Student Handout. Circulate to clarify confusion and support analysis. Note: Students may wonder why the lines on Source 1 change opacity between 2014 and 2017 — this reflects changes made to the survey questions used to collect data.
- After 4 minutes, tell students to place their source back in the folder and rotate clockwise to the next sequential source. (Students with Source 4 proceed to Source 1.) Repeat until all groups have reviewed all four sources.
- Proceed to Slide 10. Use the prompts to debrief the data walk — first in groups, then as a class. Students may add to the "Debrief Notes" section of Student Handout.
- Advance to Slide 11. Allow groups 1 minute to discuss the question. Students may add notes to Student Handout.
- Display Slide 12. Allow groups a moment to discuss the questions. Students may add to "Debrief Notes" as needed. Call on groups to share responses.
- Progress through Slides 13–14. Explain that there is significant economic and public debate surrounding government redistribution of income.
- Use Slides 15–16 to introduce two redistribution methods currently in use and define a social safety net. Students add notes to Student Handout throughout Slides 13–23.
- Use Slides 17–18 to describe who the recipients of these programs are, how one qualifies, and introduce examples of social safety net programs.
- Use Slides 19–20 to define a progressive tax and describe changes in income distribution after incomes are taxed.
- Proceed to Slide 21. Tell students there are critiques of income redistribution and the methods of government redistribution.
- Use Slides 22–24 to explain the "Leaky Bucket" critique of government income redistribution.
Slides 25–26
- Advance through Slides 25–26. Direct students to discuss their answers to the question on the slide, then circle the concept(s) on Student Handout that they connected to the lesson. They may also list additional concepts they identified. Pro Tip: If needed, direct students to reference their Unit 1 and Unit 2 Overviews (distributed in Lessons 1.3 and 2.1) to review learning objectives and assist with recall.
- Consider asking for volunteers to share their connections with the class. Collect beans, Income Quintiles, and Data Walk Resources.
Aligned Standards
Voluntary National Content Standards in Economics
Standard 7 Role of Government
Standard 8 Labor and Income
What Educators Are Saying
My kids really responded to the hook — guessing the quintiles — and also the group work of analyzing the data, each one has a surprising little hidden story they have to wrestle with. I rewarded the groups with the lowest cumulative error on their quintiles bean guessing which really spiced up the room and got us started on the right foot.
High School Economics Teacher, Taiwan
Wanted to share how much I appreciate your curriculum and the support.
Anonymous
These lessons are perfect for my on-level semester elective Econ class.
High School Economics Teacher, Connecticut