Friday, January 25 - 2 Hours Is NOT Enough Time

So, what was the purpose of what we were doing today?  We were learning how markets worked and establish prices.  Who were the sellers?  The yellow-card emigrants were selling their labor potential.  You had 4 classes of workers from highly skilled to no skill convicts.  NEVER ASSUME that we all start equal at some starting line when we go out looking for jobs and opportunities.  Choices and consequences,  along with your abilities to market yourselves make a difference in if you achieve or not.

The goal was to sell your labor to the businesses - in this case, ship captains and agents for plantations in the south and West Indies (Caribbean) sugar cane fields.  These were the buyers.  And like I said in the title - from what I overheard as well as what I noticed in the paperwork I received - you four would've given the Robber Barons of old a run for their money.  Good job to Richard, Andrew, Jerick and Zach!  They did not have any conscience about taking advantage of the emigrants inexperience and ignorance.  They owned the poor emigrants!

Now,  we didn't get to play all the rounds I would've liked to - but I want you to take a look at another class and what was happening on their multiple rounds.

The more rounds,  they were converging on a price point of around four years - very close to the historical equilibrium in the indenture markets of the 1700s of 4 years and 8 months.  As people played the game more - they came to appreciate their abilities and market themselves better.  They knew their "value" or as we say in Economics -  utility.  While at first - no one knew their utility and we had contracts all over the place time wise.  But as both sellers and buyers became more savvy,  we would've reached a number very close to what other classes reach.

I urged the emigrants to ask more questions and become better informed about where they were going and what they would be doing.  Quite a few of you ended up with Richard going to Jamaica.  Living in the Caribbean in the 1700s was not good.  70% death rate within 36 months for indentured people on the sugar cane plantations.  What killed them?  1) Malaria;  2) infections - bug bites, snake bites, cuts in the constant heat and no antibiotics created bacterial infections that made sepsis look like a common cold.  3) Dehydration in the heat and a lack of clean potable water and 4) Sugar cane manufacturing was INCREDIBLY dangerous with fires, explosions and see the above.  Adi never mentioned that, did she?

Historically,  that four years mark "broke" the indenture market,  since it became more costly to have an indentured servant than what you would get out of them in work. When costs exceed benefits - we cease an action.  And unfortunately,  this is why slavery became an economic choice in particularly the southern United States.  Remember that a choice might be economically right - but morally wrong, wrong, wrong.

Consider items you currently buy.  Have you ever noticed that when a new market opens - prices are all over the place - consider cell phones and wearable fitness items.  Over time,  consumers and businesses find the "ideal price"  and it always needs to be a price the consumer is comfortable spending money on and businesses can make profit.

It was a fun day - I definitely felt the psychic income.  I hope you did as well.

Now, who "won":  DRUMROLL:   The winners are for the emigrants is JOY!  The Captains:  Jerick vaulted ahead when he convinced someone to sign a 10 YEAR CONTRACT.  Way to go!  But,  all the captains - Zach, Andrew and Richard - All of the above named,  come and see me in 

Friday Economics

We had a session where we discussed the incentives to work - according to Adam Smith.  I have to say that I found today filled with Psychic Income.  (See slides in Week 002)

I only glanced at the work done with the Factors of Production - but the students present really demonstrated an understanding of what those factors look like in your pathways.  You are different from all the other pathways in the school in that "land" is not a tactile thing - something you can touch.  You had discussions about how labor and capital are different as well - it had me thinking differently as observations were made.   Entrepreneurship also brought up things I had not thought about.  But you all should understand that all four factors are needed before you can create a product or service.  For those gone - (See slide #2 from the blue slides in lesson 002 and do the assignment from page 8-9)   Talk to those who were in class for help.  I will probably update this blog with some of your work next week. 

We had a great lesson on opportunity costs and benefits and solved the problem of where Tyson should go to lunch.  We were all worried about that one.  Next week we will be doing more with decision grids in a micro and macro way. 

I pulled together an alternative activity involving property rights and WOW did I see the economic behavior and choices between two groups - and I did not give any prompts.  I will try to explain what we did for those that weren't there in the assignment I will be posting by Monday. 

Have a great weekend people and I look forward to having a full class for next week's simulation. 

Thursday AM January 17 - You Were Kids that Could've Given the Robber Barons a Run for Their Money

First things first:  Someone left this coat in 205.  I took the jacket to the Office.

So, what was the purpose of what we were doing today?  We were learning how markets worked and establish prices.  Who were the sellers?  The yellow-card emigrants were selling their labor potential.  You had 4 classes of workers from highly skilled to no skill convicts.  NEVER ASSUME that we all start equal at some starting line when we go out looking for jobs and opportunities.  Choices and consequences,  along with your abilities to market yourselves make a difference in if you achieve or not.

The goal was to sell your labor to the businesses - in this case, ship captains and agents for plantations in the south and West Indies (Caribbean) sugar cane fields.  These were the buyers.  And like I said in the title - from what I overheard as well as what I noticed in the paperwork I received - you four would've given the Robber Barons of old a run for their money.  Good job to Adi, Lydia, Emma and Jackson!  They did not have any conscience about taking advantage of the emigrants inexperience and ignorance.

Now,  we didn't get to play all the rounds I would've liked to - but I want you to take a look at another class and what was happening on their multiple rounds.

The more rounds,  they were converging on a price point of around four years - very close to the historical equilibrium in the indenture markets of the 1700s of 4 years and 8 months.  As people played the game more - they came to appreciate their abilities and market themselves better.  They knew their "value" or as we say in Economics -  utility.  While at first - no one knew their utility and we had contracts all over the place time wise.  But as both sellers and buyers became more savvy,  we would've reached a number very close to what other classes reach.

I urged the emigrants to ask more questions and become better informed about where they were going and what they would be doing.  Quite a few of you ended up with Abi going to Jamaica.  Living in the Caribbean in the 1700s was not good.  70% death rate within 36 months for indentured people on the sugar cane plantations.  What killed them?  1) Malaria;  2) infections - bug bites, snake bites, cuts in the constant heat and no antibiotics created bacterial infections that made sepsis look like a common cold.  3) Dehydration in the heat and a lack of clean potable water and 4) Sugar cane manufacturing was INCREDIBLY dangerous with fires, explosions and see the above.  Adi never mentioned that, did she?

Historically,  that four years mark "broke" the indenture market,  since it became more costly to have an indentured servant than what you would get out of them in work. When costs exceed benefits - we cease an action.  And unfortunately,  this is why slavery became an economic choice in particularly the southern United States.  Remember that a choice might be economically right - but morally wrong, wrong, wrong.

Consider items you currently buy.  Have you ever noticed that when a new market opens - prices are all over the place - consider cell phones and wearable fitness items.  Over time,  consumers and businesses find the "ideal price"  and it always needs to be a price the consumer is comfortable spending money on and businesses can make profit.

It was a fun day - I definitely felt the psychic income.  I hope you did as well.

Now, who "won":  DRUMROLL:   The winners are for the emigrants Shelby Parrott and Hattie Buell tying.  For the ship captains / agents it was Adi Holmes  - but all the captains did a great job.  So, Lydia, Emma and Jackson - you can come to room 200 tomorrow and collect your donut.  Which Lydia and Jackson did not do!!!

Wednesday PM January 16

No other way to get people excited about Economics.  The Stock Market Game is a fantastic hands on way to learn about markets, supply, demand and both consumer and business behavior.  I am looking forward to getting into the game - this isn't an easy market right now - so it will be harder to turn profits and keep them. 

But, keep in mind, that no one named "Guido" is going to show up and break your leg if a trade goes bad.  This is a pretty safe way to begin to learn how the market works. 

Goal for the week is to have a write up about three stocks you'd like to sell your group on next week.  Tell who the company is,  what they produce, and why you think they would be good to buy for a long position in the market. 

Looking forward to seeing what you find. 

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.