Christopher Root

ECON 1740 Spring 2015

ePortfolio Assignment

Free or Equal Questions (1-10)

1. Professor Milton Friedmans research led him to believe in the power of __________
and ______________.
A. Free Markets, 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 _______________.
A. Equality of Opportunity, Equality of Outcome
3. The free market enables people to go into any industry they want; to trade with
whomever they want; to buy in the cheapest market around the world; to sell in the
dearest market around the world. But most important of all, if they fail,
______________. If they succeed, _______________.
A. they bear the cost, they get the benefit
4. In the example of the lead pencil, what conclusion did Professor Friedman reach
in the context of invisible hands?
A. Operation of the free market is essential, not only to promote productive
efficiency, but to foster harmony and peace among the peoples of the world
5. When a businessman faces trouble, a market threatens to disappear or a new
competitor arises, there are two things he can do. He can turn to the government
for a tariff or a quota (or some other restriction on competition) or he can _________
and _________.
A. adjust, adapt
6. Economists call the constant renewal of the economy _______________. If we want
to increase our wealth and opportunities, we have to stop doing old things in
__________ and start doing innovative things in ___________. In other words, we have
to be __________.
A. creative destruction, old ways, better ways, creative
7. An example of creative destruction was used in the video. What technology was
created? What was destroyed? Why was this new technology so important?
A. cell phones, land lines. It was important because sellers can transfer and receive
information much more quickly, resulting in better service or prices. It did more to
give the average person power and reduce poverty than any government program.
8. The Founding Fathers had learned the lesson of history. The great danger to
freedom is the ___________________, especially in the hands of a ________________.

A. concentration of power, 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 __________________________________.
A. end up with neither, 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.

I am not sure there is a single person that would answer that they would
approve of this method of calculating grades. This is, however, mostly due to the
fact that it simplifies the issue and does not fully represent the opposing idea noted
here as fair shares for all. The idea that people who are interested in creating a
social safety net to make sure that those who are born into less than idyllic
situations cannot simply fall through the cracks should be equated to the
redistribution of wealth is simply incorrect. It is true that in a free market economy
there are winners and losers, but when the so-called loser is a human being
and not a faceless corporation, I believe it is the duty of all of us to give this person
opportunities that would otherwise not be available to them.
This example assumes that all students start in the same place and have
equal opportunity to work hard and earn a grade that represents that value of work.
In reality, this is hardly the case. If you are born in the United States (or another
wealthy industrialized country), you are already miles ahead of billions of people
around the globe. This would correlate to starting with a D grade, rather than
failing. You are already at a baseline which the underprivileged can never hope to

attain. It also does not establish a baseline for failure. If failure of this class meant
death, disease, famine, and the spreading of illness to others in the class, those
earning A and B grades would certainly be willing to help out the least among us.
This grading scale also neglects to show the difference between those earning an A
and those barely passing. Well compare D students to those making a median
income of around $53,000 a year in America today. An A student would be
somewhere in the $85,000 range. The top 1% averages between $1.6 million and
billions of dollars. This would be more like an A grade with hundreds, if not
thousands, of pluses.
The difference is simple. When phrased properly, a student who has an A+
and thousands or millions of points to spare would certainly be willing to
redistribute some of his wealth to someone who, even while working very hard, is
unable to make ends meet (pass the class). Those who are on the side of fair
shares for all arent simply looking to act as Robin Hood, stealing from the rich and
giving to the poor. They are looking to create a net to catch those who may fall
through the cracks. A good example of this today would be someone who is
working very hard but is in a state that has resisted the Affordable Care Act and is
unable to afford private healthcare. Through some misfortune, this person requires
surgery and bankruptcy looms. This type of person may or may not have worked
extremely hard their entire life but only through the circumstance of their location
and health, they have fallen through the cracks of society. I do not think this person
should be ignored or deserves to live in abject poverty.
With that being said, I understand those that feel that government overreach
and taxation of the wealthy are excessive. I believe the challenge of our generation
and future peoples is to discover what the delicate balance is that is beneficial for
everyone. Only through trial and error will this balance ever be achieved and there
will always be a struggle from the opposing viewpoints as to how much equality or
freedom is necessary.

Reflective Writing

Students develop the knowledge and skills to be civically engaged.

Students think critically and creatively.

When I glanced at this assignment in my syllabus, I wasnt exactly sure what

to expect. I knew it would prominently feature Milton Friedman and his free market
view of economics that I have spent so many years opposing without ever having
truly delving into.
I believe the video Free or Equal gave me the opportunity to weigh my
current knowledge of economic politics versus an opposing viewpoint. I had always
sort of viewed Mr. Friedman as a monolithic, evil person rather than a thoughtful
Nobel Laureate. Now, Ill be able to approach those with this viewpoint in a very
different manner. Ill be able to discuss the pros and cons of each system and be
more able to understand where others with a differing viewpoint are coming from.

It was a reminder to me that I should always continue to think critically. I was

also able to creatively disagree and show exactly why I felt the way I did. Ill admit
that the assignment itself made some very convincing points and showed some
incredible statistics that Ill continue to research and be able to discuss with others
around me who are also interested in politics, the economy, and the free market
versus the social safety net debate.