Archive: Business & Technology

Click to purchaseEconomics are complicated for two reasons.  The first reason is the 6 billion people across seven continents, multiple cultures, governments, and currencies that make the movements of goods and services complicated.  The second reason is that most economists you hear of are ‘experts’. (At least medical doctors admit they’re practicing.) To be an expert, you either have to dazzle someone with brilliance, or baffle them with bull shit. A great way to take the baffling approach is to make up lots of complicated words. 

So let's try a simple game that you can do at home to put things in perspective.

• Get between seven and ten pre-teens to sit around a table.
• Assign them each a service to provide.
• For example, they can be firemen and policemen, plumbers, mechanics, carpenters, barbers, hair stylists, painters, cleaners, and landscapers.
• Don't assign any of them a role in producing a product or growing food.
• Ensure that only one or two of them has the job of grocer.
• Give them each an equal amount of funny money.
• Let them begin trading.

Now the grocer is important.  The grocer can start with an inventory of food that can be sold.  To replenish the grocery store, inventory has to be purchased from an outsider.  You can play the role of the out of town farmer, if you wish. 

Eventually, each of these young entrepreneurs needs to eat.  Suggest that they also need to feed their families.  Now, as they buy food, and the grocer replenishes food, watch what happens to the money.  Eventually, the grocer is the only one to grow a balance as everyone needs to eat. However, if people want to keep eating, they have to keep buying food and the grocer buys from you.   As you're the only one who grows or makes anything, odds are you'll be the only one with any money left.

Warning: don't start the game with so much money that it takes too much time for people to spend what they have. 

Ask the players what happened.  It won’t take long for them to figure out that if you don't make, mine, or grow anything… you don't have a sustainable economy.

Another fun family game that many of you are aware of is Monopoly®.  Play a couple variations on the game.

Alternative One:  Let one player be the government and allow that player to print more money whenever they need it.  For the game to be effective, make sure the players know they can price any property they sell as they desire.  Play a while and watch what happens.   

Option two:  Allow the banker to change the rules of interest rates as he goes along.  Guess who wins?  Once the banker is the last person standing, make him keep playing and see how fast his wealth grows then.

---

v8i38