Here we go again! Jump in, buckle up and enjoy the ride!
Imagine a world without risk and where no one needs to compete. Where all your needs and wants are provided regardless of personal effort. Where no one goes without because all are provided for…somehow.
Three key concepts in a free market economy that we’ll touch on this week are 1) risk, 2) reward, and 3) competition.
Before proceeding further, take a moment and define in writing, what the words “risk,” “reward,” and “competition” mean to you. Write down an example of each in your life. How has your experience with competition impacted you?
Did you actually write it down?
Watch the following video and consider the differences for an employee vs a business owner. What are the risks each one takes? What are the potential rewards?
What does it take to start a business?
Read the Tuttle Twins and their Spectacular Show Business. (If you don’t have access to this book, please text me and I’ll help you find one.)
Understand the following terms:
- entrepreneur: a business owner who identifies a need and assumes risk to meet that need in hopes of earning a profit
- profit margin: the money a business has left over after paying its expenses
- monopoly: a business that does not have any competition (this is a very basic definition)
After reading the Spectacular Show Business, consider the role that risk, reward and competition play in the story. How could those factors impact the Tuttle Family Theater if the story were to continue? How do you, as the consumer, benefit, when your favorite businesses have to compete for your patronage? Come prepared to discuss your thoughts, backing them up with principles.
Watch this video from the show Shark Tank. Pay special attention to what they have to say about the “American Dream.”
Throughout the week, pay attention to any examples you see of risk taking, reaping rewards and competition.
More about Monopoly
Let’s get a little more in-depth about monopolies.
Watch this video. What are the three things that are required to have a monopoly?
Print, read and mark this article. Pay special attention to “natural monopolies” and “oligopoloies.” Also, note what you learn about the role of competition. Bring your marked copy and come prepared to discuss what you learn.
Economist Corner: Thomas Sowell
For our last class, you watched a documentary about Walter Williams. This week you have the chance to learn more about Thomas Sowell. As you watch, note any statements that stand out to you. What examples of long term consequences do you find? Any illustrations of the concept of seen/unseen? Unintended consequences? What experiences or realizations impacted his way of thinking? What other things stand out? Write your thoughts on a page that you can turn in.
https://www.freetochoosenetwork.org/programs/thomas_sowell
Looking forward to seeing you on Thursday and hearing about what you have learned.
A page of your written thoughts from the Common Sense in a Senseless World documentary is your ticket to admission.
