Richard Porter

Econ-1740-Su14-Howell
8/5/14


Answers to the Free or Equal questions:

1) Professor Milton Friedmans research led him to believe in the power of ______ and _______.
Answer #1- Free markets
Answer #2- Economic Freedom
2) If the government gives everybody the same freedom to work . . . some will do better than
others. The result will be ____ , but not ____ .
Answer #1- Equality of Opportunity
Answer #2- Equality of Outcome
3) After World War II, Hong Kong became a refugee camp with millions of extremely poor people.
Hong Kong had no _______, no _____________ and little _______________________. But
almost by accident it was given ____________________________. . . . As a result, Hong Kong
became an ___________________.
Answer #1- Prospects
Answer #2- Natural Resources
Answer #3- Land that could be Cultivated
Answer #4- Economic Powerhouse
4) In the small Baltic country of _________, Prime Minister Mart Laar took his inspiration from
Professor Friedmans book Free To Choose. What three things did he do to imitate the Hong
Kong model?
Answer #1- Estonia
Answer #2- Zero Tariffs
Answer #3- Flat Tax
Answer #4- A Minimum of Regulation
5) Adam Smiths concept of the invisible hand was illustrated in the example of buying a tomato.
The following 3 points were made:





Answer #1- Pocketbooks
Answer #2- Sends a message
Answer #3- Better the Lives of Others

6) Economists call the constant renewal of the economy _______________. To increase our
wealth and opportunities, we have to stop doing old things in __________ and start doing
innovative things in ___________.
Answer #1- Creative Destruction
Answer #2- Old Ways
Answer #3- Better Ways
7) Swedish entrepreneurs are the ________ in the world. Young Swedes and entrepreneurial
immigrants have moved from Sweden to Britain and the U.S. because the ______ are much
greater there, where ______ are lower.
Answer #1- Oldest
Answer #2- Rewards
Answer #3- Taxes
8) The Founding Fathers had learned the lesson of history. The great danger to freedom is the
___________________, especially in the hands of a ________________.
Answer #1- Concentration of Power
Answer #2- Government
9) As Milton Friedman said, The society that puts equality before freedom will
_________________________. The society that puts freedom before equality will end up with a
__________________________________.
Answer #1- End up with Neither
Answer #2- Great Measure of Both
10) Professor Friedman compares the concept of equality of opportunity to a race where
everyone begins at the starting line at the same time. In contrast, equality of outcome
guarantees that everyone finishes at the same time. Today, equality of outcome is referred to
as fair shares for all. If we applied the fair shares for all concept in this class, all students
would receive an average grade of C. This would be accomplished by taking points away from
students earning As and Bs to give to students earning Ds and Es. Distributing points equally
would result in fair grades for all.

Would you approve of this method in calculating your final grade? Why or why not?

How would this differ from fair shares for all economically?

For example, whats the difference between a successful student being required to give
up some of his/her hard-earned grade and a successful person being expected to give
more of his/her hard-earned income? If you support redistribution of income and
wealth, shouldnt you also be willing to redistribute academic grades? After all, many
of your fellow students may not have had the advantages in education and upbringing
that youve had.

Address the above questions in your own words, in a minimum of 3 paragraphs.

This method of fair shares for all would be met with resistance from me if we
implemented that in the class grading system. While the theory is nice, the product of education
is knowledge and earning a D or E would be the result of one of two things. The first would be a
lack of application to the course from the student. If the student didnt try, the student would
still be passing the class. I would take issue to my work being applied in that way. The second
outcome would be a lack of knowledge on the part of the student when the class is finished. If
this coursework was a building block to the next step in education, the student granted a C
without the knowledge to actually pass the class, would suffer in the next class without the
same benefit of the fair shares for all grading system in place uniformly. Rather than
implementing this, perhaps a mentoring resources program could be mutually beneficial for all
parties. The student who refuses to work reaches their outcome either way. The student
struggling to work and succeed could be paired with someone who is succeeding in their
respective markets possibly giving them a bump up. It still lies to the student to take advantage
of such opportunity, but would something like this (in this classroom grading example) be worth
trying?

The fair shares for all idea in economic terms would be much different than the
grading system. In economics, the invisible hand would be destroyed as force to the people
succeeding in their market is applied for financial equality. Perhaps if any redistribution of
wealth was done on a voluntary basis from the winners of the new markets, rather than
allowing bureaucracy to dictate the terms of redistribution. The example most relevant talked
about in the video is the plight of land line phone technicians. These people have been displaced
by a changing market of cellular phone technology. Their skills are not in the demand to move
forward in the emerging tech society being created. These workers would find themselves the
beneficiaries of the new technology (as prices fall and availability of the technology becomes
more prevalent, changing everybodys lives) at the cost of their slice of work. The bureaucracy
would be inclined to provide unemployment benefits and offerings of the welfare state. The
private contributions could be setup as scholarships for educational opportunities or programs
within the new companies to move the displaced workers into the new markets, but dictated as
private contributions, these could work better for the people it is designed to help. On a
voluntary basis could the redistribution of wealth be more beneficial to the society? I dont think
anyone likes the idea of creative destruction actually hurting people, but necessity may
dictate this is the outcome most beneficial to everyone, including those hurt in the process.

It seems after watching this video, the free market and deregulation is an answer to
many of the issues the world faces today. This idea is great but the practical application of it to
the expanding bureaucracies that exist seem like an issue that will never be fully solved. As my
suggestions above imply, there are a lot of people looking for compromises to ensure people
dont get left behind, but that idea may never work and we may need a more radical and
dramatic approach to move forward with the ideas presented in the video.

Reflective Writing
The impact of watching Free or Equal provided me with two perspectives of the SLCC Learning
Outcomes.
- Think Critically & Creatively
- Become Civically Engaged
Critical and creative thinking brought me to exploring options of a better way than my
previously held beliefs. I had always considered myself liberal on the topic of wealth redistribution. After
watching this video (and reading the chapters on labor in America from the textbook), Im not sure how I
feel about it anymore. If free markets are the solution getting results around the world, that may be the
best idea. If there is a way to help others inside of that idea, Id like to explore that to keep in line with
my previously held beliefs. Either way, the thoughts I would have next time this subject is presented to
me would be different as a result of watching this video. The thought process its caused me to explore
has been a departure from the standard ideology I thought I was secure with. This end result is what I
think the goal of education is, get someone to question beliefs and become more informed.
The video has given me a desire to explore some more research on the topic and become more
civically engaged. I vote, I speak with my pocketbook, and I try to be informed when I do these things.
This video has made me want to make sure I am engaging in that level of behavior consistently to make
some difference, even if it is small. The political and economic system are intertwined in a way that may
never be separated, and the more complex it gets, the higher the level of engagement needs to be on
the part of the people dealing with it. The policies are shaped by civic engagement from people who can
make a difference. The more I can be an example of civic intelligence in my decision making to my kids,
the more they may benefit from it in their lives. Who knows? My son may someday be the economist
who figures this whole thing out.
The more I reflect on Free or Equal, the video required to watch for this project, the more I want
to watch the original broadcast from 1980. It seems there is much more to this topic I should inform
myself about. One thing I like to do is get all the facts and make up my own mind, and try to rid topics of
bias. Because this is a politically charged issue as well as an economic issue, there will be a great deal of
bias to look through, but in the long run, if a better understanding of the topic can be had then the time
spent will be worth it.
As an aside, this was my favorite class this semester.