Welcome to another excited week of Economics!
First, let’s put in a little plug again for why economics matters. (Just in case you forgot or you are new to economics this year and were wondering…)
And, because he brought it up again, let’s review the idea of “that which is seen and that which is not seen.” Read and mark the second chapter of Economics in One Lesson. (Link to the free version here. If you use the online version, print pages 26-27.) Watch the following video. Take notes and come prepared to share your thoughts.
Last time in class, we touched on the concept of private property. I cannot overstate the importance of that topic. Indeed, without accepting the concept of property rights, America’s whole economic system, the entire idea of capitalism and free markets crumbles.
Having lived our entire lives in America, this is not a new concept so it is easy to take for granted. I want to invite you to think long and hard about this. If you could not reasonably assume that any property you acquired was yours to use and dispose of as you saw fit, how would that impact you? your work ethic? your daily choices?
Watch the following video and print, read and mark this article to better understand the term “property” as understood by the founders. Look for and mark especially principles regarding property and threats to property.
About Regulation
Read the Tuttle Twins and the Food Truck Fiasco. (If you don’t have access to this book, please text me and I’ll help you find one.)
Understand the following terms:
- capital: also known as “financial capital,” this is the money that a person uses to buy or create something, in order to sell it and profit from the investment
- competition: the attempt to win something by being better than others who are doing the same thing
- profit: the difference between what something costs and what somebody paid for that thing; a financial gain
- protectionism: shielding one business or industry from competition by others using taxes or regulations
- regulation: a rule established and enforced by the government
After reading the Food Truck Fiasco, consider how the regulations in the book affected the property rights of the individuals involved. Is there a legitimate role for regulations? Come prepared to discuss your thoughts, backing them up with principles.
Economist Corner: Walter Williams
For our last class, you watched part of a lecture given by Walter Williams. The following video is a documentary about his life. 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? Regulations? What other things stand out? Write your thoughts on a page that you can turn in.
Looking forward to seeing you on Thursday and hearing about what you have learned. We’ll have a rousing 7th inning stretch as we look to the sport of baseball for an unexpected example of how minimal regulation and property rights open the door to innovation and lead to something entirely unexpected!
A page of your written thoughts from the Suffer No Fools documentary is your ticket to admission.
