As a way to simulate three of the most popular economic systems used worldwide, we performed an activity that would produce the same results. Starbursts were used to represent money. While most were given three starbursts, a small amount of people received ten. This is to account for the small upper class and the larger middle and lower classes. For about fifteen minutes, we were allowed to play rock paper scissors with fellow classmates. The winner would receive one of the losers starbursts. This is to represent individual monetary gain in loss. In a capitalistic economy, the government does not regulate trade and industry. Everyone in the class was allowed to choose whether they wanted to gamble their starbursts, or keep the ones they had. Some of those who had ten starbursts in the beginning ended up with less, while some of those who started with three ended up with more. At the end of this trading period, Ms. Bailey collected everyone's starbursts, and redistributed them equally among the class. This is to represent government control of economic activity in socialism. After this the class was given one more opportunity to gamble their starbursts again. Unlike the previous time, only a few students were willing to play again. This portion of the activity was to represent communism. Most students were fine with having the same amount as everyone else, and economic competition was very weak. The activity gave a very clear and realistic representation of capitalism, socialism and communism.
Some time after we performed the activity, a Socratic seminar was held to discuss what was learned in the process of the activity. I personally did not choose to participate in the seminar, instead I took notes during the discussion. I found some of my fellow classmates opinions very interesting. It became obvious that the turn from capitalism to socialism aggravated a lot of people. Both Kyle and Julienne discussed how it was frustrating to work to gain such a large amount of starbursts, just to lose it in the end. I also noticed that many people recognize that competition plays a huge role in an economy. Ryan had mentioned that humans are innately selfish, and in the end we care about ourselves first and others second. Troy said that no matter what the situation, everyone tries to find a way to win. This was represented in the activity when some people stole starbursts from others. While this might not be considered ethical, it is a perfect example of how some people were only concerned with the amount of starbursts they could gain. Ryan also said that a socialist economy is better for the poor because in a capitalist society, it is very difficult for a poor person to become rich. While I find this to be true, I still believe that a capitalist economy is better overall because it focuses around the idea that competition can drive an economy.
Karl Marx and Adam Smith proposed two different solutions to the same problem. Both men created ways to aid the lower class in society. Marx believed that the people would do anything to destroy the barrier between the proletariats and the bourgeoisie. To start, people would transform their capitalist government into a socialist government in order to make the circumstances fairer. From here, the people would self mediate themselves to the point where a government was no longer needed. In this scenario, social classes would no longer exist, as everyone would be economically equal. Adam Smith believed in the theory of the “Invisible Hand.”This concept states that the consumer would be driven to purchase from a business who provides the best and cheapest product. This creates competition among business owners, as they are trying to sell the best product for the lowest price. The drive that consumer have to purchase from a business that offers the best product is recognized as the invisible hand. Each proposals to aid the poor have their own pros and cons, however in the end they theoretically accomplish the same goal.
While I think that capitalism is the best way to run an economy, I do feel that there are ways it can be improved. One of the major problems with capitalism i that there is often a clear divide between the upper class and the lower classes. While the rich are constantly making a large sum of money, the poor can never gain enough money to move into the middle and upper classes. A solution to this would be taxing individuals based on income. If an individual has a high income, they should be taxed more than someone who has a low income. While everyone is still paying taxes, the rich are able to cover for the poor, as it doesn't affect their overall wealth. The poor would be able to save money and be able to better their lives, get better jobs and move up the social hierarchy. I feel that competition is a crucial part to any economic success. This coupled with my own ideas on taxing could make for an improved form of capitalism that accommodates for the lower class as well.
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