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Puspa Gautam

Professor: Joe Howell


Econ 1740

Free or Equal QuestionsWhile watching Free or Equal, answer the questions as follows:
Fill-in-the-blank questions - Use the precise language from the video. Short answer questions Summarize the concepts in your own words. Question 10 - Analyze the proposal & provide your
unique perspective.

1. If the government gives everybody the same freedom to work and reap the rewards, some will
do better than others. The result will be ____________________, but not
____________________.
Answer #1

equality of opportunity

Answer #2

equality of outcome

2. Immigrants who arrived in the late-1800s/early-1900s found that America was truly a land of
opportunity. Describe the factors these immigrants encountered which helped them
thrive.
The factors that helped immigrants thrive were the elements of a free market
Factors such as: eager, hope, talent, hard work, few rules and regulations, no licenses
or permits, and no red tape to restrict them. There was also many rewards for
hard work, enterprise, and ability. The opportunity was real.
3. Although Hong Kong had no prospects, no natural resources & little land that could be
cultivated, it became an economic powerhouse. How?

HONG
KONG

The free market was able to be used in Hong Kong because British government couldnt be
bothered with local Hong Kong affairs. And the governor here happened to favor free markets.
So Hong Kong never introduced all those policies that other government did: like, no tariffs, no
regulations or government intervention in economy. So economy could evolve in natural way,
enables to go and trade with whoever they want. As a result, Hong Kong become economic
powerhouse.

4. Estonian Prime Minister Mart Laar decided to imitate the Hong Kong model with
__________, __________ and _______________. Estonia is widely seen as the most
________ of the former communist economies.

Answer #1

Zero tariffs

Answer #2

Flat tax

Answer #3

Minimum of regulation

Answer #4

Successful

5. Explain how the lead pencil & the smart phone are examples of invisible hands.

Invisible
Hands

It takes the corporation of many people or hands to make things/products that we use.
It is self- interest, not greed but day to day decision to make our life better. The concept
of invisible hands derives from the theory that in order to make your
life better, you have to better the lives of others. To accomplish the task of manufacturing
one, single object, the interaction of thousands of people from all over the world is
necessary. For example, a lead pencil is made of wood from a tree. A saw was made to
cut down the tree; the saw was made from steel; the steel came from an iron ore. Another
example that was presented in the video was a smart phone. The display on the phone
came from Japan, the camera from Vietnam, the chips from France, the memory
from Korea, the microphones from Austria, the battery from China, and the software
and design centers from all over the world like India, Finland, Britain, and the United
States. No one person in one place could make all this; it is a result of cooperation of
many all over the world. The free market fosters harmony and peace among the people
of the world.

6 Explain the concept of creative destruction as described in the Free or Equal video.

Creative
Destruction

Creative destruction is a concept that occurs whenever some businesses are destroyed in
order to give new, creative business a chance at success. Constant renewal of the economy,
if we/societies want to increase wealth and opportunity then it has to stop doing old
things in old ways and start doing innovative things in new/better and creative ways. Doing
such old businesses close and people lose their jobs which is the destructive part, yet most
economist think that creative destruction is necessary for the economic development.

7. Johan Norberg describes how his home country of Sweden taxes heavily & then
redistributes wealth. Describe the benefits & drawbacks that this approach has on the
Swedish population, as described in the video.

Benefits

Drawbacks

Johns home country has made an effort to make peoples lives, more
equal. To reduce differences of outcome, government tax heavily and
redistribute wealth among the citizens.
The drawback is that it isnt as beneficial for the people whom to choose to
work very hard. They make no extra gains from doing so. Many or most
able people do not work and still reap the benefits from those who do work
because government still gives the benefits to them. This is where the
inequality of this system comes into play.

8. Explain the statement Free markets regularly turn luxuries into consumer goods, as
described in the video.
Consumer
The price of goods/things that were once a luxury, such as cell phones or
Goods
computers, has become more affordable through free market. So with the
excises of free market, even poor or average person can make more and do
more with their money. These luxuries can be enjoyed by more, turning them
from a luxury into a basic consumer goods.

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 uses the analogy of a race to explain the concepts of Equality of
Opportunity and the Equality of Outcome:

Equality of Opportunity
All race participants are given the
opportunity to begin the race at the same
starting line at the same time.
Also known as Free Market Capitalism.

Equality of Outcome
All race participants are guaranteed to
finish at the same time
Also known as Fair Shares for All.

In this class, we apply the Equality of Opportunity concept. All students begin on the same day,
receive the same course information & have the same amount of time to complete the
coursework. While there is no guarantee that students will earn a respectable grade, all students
are given the opportunity to earn a respectable grade.
Classroom
Hypothetically, if we applied the Equality of Outcome concept in this class, all students would
be guaranteed to receive the class average grade.
The grade would be determined by combining all points earned (by the class as a whole) &
dividing them equally among each student. All students would earn the same grade regardless of
their performance.
Unless the class average were unusually high or unusually low, the most likely result would be
all students would earn a grade in the C range (C+, C or C-). Grades in the C range are
generally considered to be average grades.
1. Would you approve of using the Equality of Outcome method in calculating your final
grade? Why or why not?
2. What are the pros & cons to the student in using this method?
3. Address the above two (2) questions in a minimum of 2 paragraphs.

Equality of Outcome in the Final Grading.


I definitely not approved to this method of grading on Equality of Outcome method. I
strongly believe a degree and grade are based on ability to dedicate the time and effort to the
subject matter, thoroughly comprehend the information, meet assignment deadlines, and
successfully study and pass required quiz and test materials. Every student is unique in that
each individual has a different knowledge foundation from his or her peers. Therefore, in
order to ensure that everyone begins a task with equality, identical resources should be made
available to each (i.e. computers). Everyone then begins with the same opportunity. It is now
the individuals choice of what outcome he or she will create. I am typically an A student and I
have good GPA in overall. If we calculated our final grade based on the Equality of Outcome
method, the likelihood of getting an A would be extremely lowered. While I still would pass
the class, but this is not fair to those who have worked hard. I feel, if this method is
implemented, could promote laziness and lack of motivation for students to put their best in
their assignments.

Pros & Cons


The pros of this method would be beneficial to the students whom were struggling in the
class. If they were likely to receive a lower grade on their own effort, but have their grades
increased to receive the class average, meaning they reaped the rewards from this system.
While it isnt a guarantee that the outcome will be a C grade, it does increase their possibility.
They could put in minimal effort, instead of their best foot forward, and the result would be
they pass.
The cons to this method are geared more towards those students who are an above average
student. They receive the grade that everyone as a whole earned, not the grade that they
individually worked hard for.

Workplace
If the Equality of Outcome concept were applied at your workplace, all employees would be
paid the same wage, regardless of their job duties, education, performance or skill.
Consider the example of Gravity Payments, a Seattle-based credit card processing company.
In April 2015, CEO Dan Price set a $70k minimum salary for all 120 employees. He also
announced that he was taking a pay cut from $1 million to $70k.
1. Would you approve of using the Equality of Outcome method in calculating your salary? Why
or why not?

2. What are the pros & cons to the employee & the business in using this method?
3. Address the above two (2) questions in a minimum of 2 paragraphs.
Equality of Outcome in the Workplace
I would strongly have opposed the equality of outcome method in calculating my salary.
Even though using this method could greatly benefit me if I were in a lower standing
position in my work place, but in the same time, it could be frustrating if I am in a higher
paid position in my work. I dont view this being fair in all actuality. While it is supposed
to be supporting equality among the companies employees, it doesnt support me in what
I worked hard for to obtain. People have different work ethics and different positions in
their everyday lives, if someone that works only 4 to 6 hours a day compared to someone
that works 10 to 15 hours a day should they be rewarded the same way? I dont feel they
should or have to give up their income for someone that just flies by expecting things to
come to them while the other works harder to keep their job and not loose it.
Pros & Cons
The pros to the employee would be that they are receiving a guaranteed wage regardless
of their job position. This would very beneficial for lower ranking employees that would
not have seen that much in a years salary on their position. For the business, it would be
beneficial by saving money potentially.
The cons for the employee would be that some position will be taking a pay cut, and that
could be significant cut based on their position within company. They arent being
rewarded anymore for having an education or an expertise. The cons for the business is
that the employee productivity is at chance to decrease.

Reflective Writing
Compose 2-3 paragraphs explaining how completing this assignment helped you achieve at least
two (2) of the SLCC Learning Outcomes:

Learning Outcome #1
Students develop computer and information literacy
Completing this assignment has helped me achieve to think critically and creatively, and
develop computer and information literacy. This assignment has brought attention to the
liberation of our free markets and our self-interest. Self interest in this assignment is to better
my understanding of how to think critically in economic history. I feel that working with this
assignment has opened up my mind to how times really were and how the economy had to
work together to become better. Everything has its purpose and place in time to help improve
our society and economy. Being able to develop the computer and information literacy and
look deeper into our history helps me understand better what our ancestors and economy
went through to get to where we are today.

Learning Outcome #2
Students develop the knowledge and skills to be civically engaged
During this assignment I gained knowledge and applied the video to our questions and the
concepts that Friedman explained. I gathered and evaluated the information and constructed
an answer to our grade distribution question based on facts found in our assignment. This
assignment help guiding my critical thinking in deciding how to answer our final grades
equality. Soon after beginning the assignment, I realized it was more complex than I thought.
I had to use critical and creative thinking skills in order to come to an appropriate decision
about various topics such as the fair shares all concept. I had to think about how these
topics applied to my life and what effects they would have in different situations.
This assignment has helped me to become open and see different point of views other than
my own. Without this newly gained skill, I would just shut out everyone with an opposing
opinion. The world and how society deals with certain situations is constantly changing;
therefore, new, innovative ideas are always needed. Thankfully, I possess the willingness to
accept these new and creative solutions to various conflicts in the world. Finding ways to
improve our relationships as people nationally or even globally will change the way we
perfect our future. Involving ourselves in our cities or states social society can allow us to see
exactly what is involved with improving our worlds struggles and noticing that even a little
effort can go a long way.