Simulation Rules You will be given some starbursts

Simulation Rules • You will be given some starbursts. Please do not eat the starbursts – yet. Seriously, don’t. • Play rock-paper-scissors with another person. Whoever wins (best out of 3) gets a starburst from the other player. • You must play at least twice. • You may play as many times as you would like as long as you still have starbursts. • Once you are out of starbursts or no longer want to play, please sit down.

Do Now #1: Should everyone keep their candy or should Mr. S/Ms. O take some from those who have the most and give it to those who have the least? Why?

Question #2: In our simulation, some people started with more candy than others. In real life, why do some people start with more than others?

Question #3: In our simulation, some people ended with more candy than others. In real life, why do some people end with more than others?

Question #4: What if I had told you before the game that no matter what happened during the game, at the end we would divide the candy up evenly – How would that have affected the game?

Question #5: If you were guaranteed a certain income – and couldn’t earn more or less whether you had a job or not -- would you get a job?

1. This situation = Communism. Communists restrict freedom (ex. earning more money) to ensure equality.

So how could a communist country get people to work?

2. Force – Threat of Death

3. In practice communism often led to a) dictators, and b) famine.

Some Communist Countries and Death Tolls Russia (5 Million, ~1930) China (36 Million, ~1960) North Korea (3 Million ~1995)

4. Communism Today

Communism in 1950 s

Our Question Next: After World War II, communism spread through many parts of the world. The United States tried to stop the spread of communism. This was called the Cold War. Question: Was the United States’ response to the spread of communism reasonable and fair?

Expansion of Communism

So How Would the US Distribute the Candy? • People keep most of what they earn. • Some of what people earn is taken by the government (taxes) and given to those with the least (welfare). This is a “soft” version of capitalism – in contrast to complete laissez-faire capitalism.

Is This Perfect? No • People don’t keep all of what they earn – they pay taxes. • Not everyone starts off with exactly the same opportunities. • We accept inequality – some are rich, some are poor.

Quotations – Capitalism or Communism? 1. The government should stick to the principle of laissezfaire and keep its hands out of the economy. 2. All members of society should have equal access to resources. No one should be wealthier than anyone else. 3. All members of society should have equal opportunities, but since some people are more talented/work harder/luckier than others, some people will be wealthier than others. 4. All people should be ensured of basic freedoms – such as free speech, free press, the right to vote, etc. 5. Freedom is less important than equality – as long as everyone’s basic needs (food, shelter, clothing, etc. ) are being met, the government does not need to give you freedom.

Quotations – Capitalism or Communism? 6. Anyone can open a business. That person can choose what to sell, how much to sell it for, how many to sell, etc. 7. There are no private businesses. The government makes decisions about what/how much to produce. 8. People choose a job, earn money, and can use that money to buy what they want. 9. The government assigns people a job. The government then provides for people’s basic needs and thus money is not necessary. 10. The harder you work, the more money you earn.

1. The government should stick to the principle of laissezfaire and keep its hands out of the economy.

2. All members of society should have equal access to resources. No one should be wealthier than anyone else.

3. All members of society should have equal opportunities, but since some people are more talented/work harder/luckier than others, some people will be wealthier than others.

4. All people should be ensured of basic freedoms – such as free speech, free press, the right to vote, etc.

5. Freedom is less important than equality – as long as everyone’s basic needs (food, shelter, clothing, etc. ) are being met, the government does not need to give you freedom.

6. Anyone can open a business. That person can choose what to sell, how much to sell it for, how many to sell, etc.

7. There are no private businesses. The government makes decisions about what/how much to produce.

8. People choose a job, earn money, and can use that money to buy what they want.

9. The government assigns people a job. The government then provides for people’s basic needs and thus money is not necessary.

10. The harder you work, the more money you earn.

You will be able to explain the difference between capitalism and communism. Question Capitalism Communism What to produce? Market determines--if it will sell, it will be made Government councils decide what to produce depending on what they see as a need of all the people Who produces it? Market determines--if an entrepreneur decides to make the product to make a profit, the entrepreneur will produce it Government councils decide which government owned factories produce the goods they decide to make For who is it produced? Market determines--if the consumer can afford it, the entrepreneur will produce it for the consumer Government councils decide which citizens get which goods