Reflection After Wednesday AM

For a class of 45 we can have some interesting times with simulations.  Today's indenture game wanted to show how the market can work its way to equilibrium.  There was some interesting negotiations that I overheard.  I think some of you discovered that it wasn't a level playing field - we all didn't start equal.  Some people because of skills or negotiating skills,  you were able to get a jump start.  Compare that to the convicts - they were "winners" if they could at least get to the New World.  If they stayed, they would be hung.  Also,  where you ended up tended to have an influence on "winning."   Remember what I told you about ending up in the sugar cane plantations of the Caribbean. 

You can see how the market prices clustered the more we played.  We got close to what was the equilibrium in the early 1700s - 4 years and 8 mos. 

Winners:  Connor Birkholz won for the emigrants,  and Jackson Quevedo - who managed to get a 12 year indenture contract - won for the captains / agents.  I would like all the captains / agents and Connor to stop by 205 tomorrow morning and collect your donut! 

Don't forget to do the debrief, readings,   and think about the opportunity costs and benefits of your own choices.  There might be a quick quiz over the reading and one-pager. 

Have a great week!

January 14 Monday Econ

It was a grey start to the day,  but things quickly warmed up in class.   A lot of you did a fabulous job with the 4 Factors of Production drawing. 

As far as our simulation - we only had two rounds - but I think you could see the trend line I drew - showing how do we find "prices" in an economy?  If you notice - in the first round,  when you had no idea about the value of your labor,  you have no idea what price you should ask for.  You will notice in round one,  prices are all over the place.  But in the second round - when both captains and emigrants had an idea of what prices should be - we are beginning to see a market stabilize.   I am sorry that I didn't time things out well today.  Watch the other classes when I post their data sheets - you will see that the market does work its way down to cluster around 4 years.  That ended up being too short of a period for most people that paid for the labor.  It is why slavery took over as the "labor of choice."  A sad era of US history began as an economic choice. 

More rounds would've demonstrated how the market finds prices.   What items do you see this happen with in your lives?  (Hint:  you probably have one in your pocket) 

As far as negotiating -  Bravo for using the 3 economic questions of What to produce, How to produce, and For whom to produce when you were negotiating.  It also helped with the captains to evaluate who they wanted. 

BTW:  Congrats to Brooke Lindquist for winning the  most emigrant points.  Captains / Agents was won by Sky Putnam and Myles Kroll.    Also,  if you signed on with Karlie Muff  and took her up on a new life in the Caribbean - you likely DIED within 3 years.  Starvation, dehydration, malaria, infections,  horrible accidents at the sugar cane plantations killed 70% of emigrants. 

No class this week - but you do have assignments to do in Week 002. 

Friday AM Economics

OMG!  Today was so much fun for me as a teacher.   Our managers, Eli, Ethan, Logan and Finian did an outstanding job at channeling Jamestown overseers.   I saw strikes,  indentures that ran away,(Richard)  etc.  You really should've had a feeling for what early life at Jamestown was like.  The idea of a reward that was seven years in the future wasn't enough incentive. 

Thus Jamestown learned - and other colonies as well.  Incentives needed to be offered immediately.  Frankly,  people learned that they were in shortage in the New World,  so they could demand private property rights more than people living in Europe, Africa or Asia could.

As you go through the following week - think about the role of incentives and private property in your own life.  What makes you respond or not respond?  What incentives would get a desired response?  

Your assignments are posted.   The debrief will be assessed and is due next Friday.   

I had psychic income today - but I don't think many of you realized the looks you were getting from people outside of class.  There were some priceless looks.  Luckily,  I had warned the office what we were doing.  Otherwise I think we would've had some "interventions."  

I invite you to look at the rest of the week's blog posts.  I've got some pictures and observations that might mean something to you.  

Reflections After First Class - Thursday

Last semester,  I learned that the humor of my Thursday class is special.  I found that this semester - I will laugh a lot during our two hours.  😆 

Thank you to my bosses of Ian, Isaac, Carlos and Brandon.  You did great work.   I saved a couple of the papers - I wonder if the Jamestown settlers sent such letters back to England?

It was a massive shift in thinking to give private property rights to all and pay everyone for their individual work.  In European, African, and Asian history - this had not really happened.   Jamestown's experience was picked up by other colonies and a big reason why our country jumped ahead of many in the world.  

Incentives - of course, profit 💲💵💰can motivate a lot of behavior.  But I have met business people that have complained that high school students don't perform to their expectations.  "I'm paying $9 an hour."  But,  I have asked "What do you offer in psychic income to incentivize your workers?"   

Money isn't the only incentive.  Work needs to be fun, fulfilling, rewarding.   For me,  days like this make work fun.  It keeps me motivated.  Don't get me wrong...I like my paycheck too.  But I stay in this job for the psychic income.  Often, that makes better workers.  

This coming week, think about the role of incentives in your life - both profit and psychic income.  Do they - or the lack of them - affect your economic choices?

I invite you to read the other readings from this week -  I have some more examples from Cuba.  

Reflections After Wednesday AM & PM Economics

I have to say that I LOVED our class today.  Thank you to our overseers of Grant, Caleb, Will, John and Jaston.   You were excellent!   You channeled the mean boss syndrome.  Okay - Will was a bit nicer - he didn't yell and I believe he did feed his group.

Wow!  I have a new respect for being the mean boss.  Since my afternoon class is so small - I played the boss.  Wasn't easy!  I got some dagger stares when I took candy for myself. 

I'm used to seeing the strikes in groups,  but there was a new phenomenon that has never appeared before.  I believe it was Grant's group that not only struck - they went looking for a new boss that would "feed" them.  I will have to look at Jamestown and see if this happened.  The choice to move was interesting to me.

I also heard some students wondering if this is what some government workers are going through when they are working without the incentive of pay.  Bravo for that connection.

Economics is about choices - and incentives as well as clear ownership of private property - help direct people and the resources to better productivity.  Jamestown, once those things were established turned into a flourishing colony and lessons learned there helped make our country an economic powerhouse.

Other people in the world struggle - and often I have found that lack of clear incentives and private ownership make the difference if an economy thrives or fails.  I'd recommend that you look at my previous blog showing the lack of incentives and private property are keeping Cuba from advancing.

Next week, we will be talking about the FIRST economist, Adam Smith, helped establish the rules of the game in capitalism.  We will also be learning about opportunity costs and benefits in graphing.   Of course, there will be another simulation.   In the meantime,  think about the role of incentives and private property in your own life.

Assignments are listed - and I would enjoy your comments or questions.

Reflections after Monday AM Econ

I had a fun first day!  Jamestown is an interesting opportunity to examine how incentives and private property can make the difference in survival or not.  It continues to work to this day with the examples of whether countries are prosperous or not.

As I was saying,  I was in Cuba - a country of real problems with incentives and private property rights.   This picture shows

The Communist government led by the Castros lets a person own their own apartment - and many Cubans have great apartments with many of the features we  have in our apartments. Frankly,  I was surprised at what I saw.  But there is no ownership or infrastructure (word from your readings) to maintain the building or the streets.  Hence,   things are a bit of a mess.  There are no incentives to try to fix more than what you know you own.  So, when you walked the streets and into the walk ups to apartments,  when the doors opened and you saw bright colors and 54-inch flat screen tvs playing Game of Thrones - I had an aha moment about Jamestown.  

Early in the history of the United States - the colonists figured that out and in a New World where the old traditions of Europe could not be enforced - our country quickly developed.  

We also talked about profit and psychic income as incentives to work.  More about that next week!  In the meantime,  begin to think about the role of incentives in the choices that you make.  

I also discovered that you are all too nice.  Usually with this simulation I have people screaming, threatening, and eating all the candy in front of the workers.  People went on strike a lot sooner.  

Risen from the Ashes

I decided it was time to resurrect my dead blog.