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Capitalism for kids
Mises.org ^ | 09/07/2001 | Paula Smith

Posted on 09/07/2001 8:51:55 AM PDT by Constitutionalist Conservative

Parents and non-parents alike should quake in fear at the methods in which our young people are being taught in school, both public and private. In the public school systems, we see all children learning in conformity with the "lowest common denominator," while in private schools, the children are brainwashed with the "community service" mantra and all other forms of political correctness. What is a capitalist parent to do?

Try going to your local Target and picking up, for less than 50 bucks, a copy of the CD-ROM "Roller Coaster Tycoon." This innocent-looking child’s game will provide all of the basic training in economics, marketing, and business management you could hope for in freshman-level college courses. The only difference is that this format makes learning these subjects fun, intuitive, and easy to understand.

Perhaps your children already have this game, and you haven’t really paid much attention to it. You should. Not only will you find it fascinating, but you might actually learn (or relearn) a thing or two. This is pure capitalism at its best: you design a theme park, complete with all of the real-life accompaniments (information booth, souvenir and food stands, walkways, queuing lines, restrooms, etc.), and try to satisfy customers.

The more interesting the rides, the better the food, the more efficient and well planned the layout, the happier the customers will be. The happier they are, the more money they spend. The customers’ happiness, however, is also somewhat dependent on how much money you spend designing and operating your park—just like real life. And, ultimately, the more money they spend, the larger your profit should be. (There is even a handy Profit and Loss statement available any time you want to "count your money," a nice intro to accounting for kids.)

Just as in real life, there are costs associated with all activities needed to build and maintain a business. You must take out loans to pay for your capital expenditures like roller coasters, infrastructure, and common areas. Your revenues are offset by operation costs (e.g., hourly expenses to run the equipment, personnel costs, construction costs, costs of food/beverages/souvenirs). Your revenues come from several sources. For example, there may be an entrance fee, which you set, to get into the park; each ride may have a cost associated with it; food/beverages/souvenirs all have prices.

The program is extremely flexible, allowing you to change prices "on the fly."  Let’s say that it starts raining (the program is always tossing in changing variables, much like real life). You just go in and raise the price of umbrellas and make a killing. (This was my seven-year-old’s idea.) It is extremely logical.

In addition to weather (is it hot or cold, rainy or sunny, what is the forecast?), other game variables include queues for rides/attractions, and how the rides are designed. (You can really micro-engineer the coasters for maximum effect; there is even "vomit," which must be cleaned up by your maintenance crew if the rides are too violent.)

It is up to the player to act—or react—to these variables. If your queue is very long for one particular ride, raise the price. Depending on the price elasticity, you may be able to increase your profit per hour with fewer riders. (Again, a lesson imparted to me by my seven-year-old.)

There are some effective marketing lessons imparted as well. Each customer in your park has a number, and by clicking on your customer, you are treated to a host of marketing information, such as how the customer is feeling (happy, sad, frustrated, hungry, bored); how much money this customer came with, has spent and has left to spend; what types of rides the person likes; why the customer came to the park; etc. You can respond to these bits of data in appropriate and effective ways (e.g., quickly plop a hot dog stand down near a hungry person).

There are also "marketing awards" that pop up periodically, depending on the overall opinion of your customers of your park, such as "value for the money." These awards will affect the customers attending your park, and it is important to maintain a good reputation and develop brand-name capital. Other, more subtle, marketing-type decisions include where to locate various kiosks and rides for maximum exposure and value to your customers and how to lay out your park for efficient flow of customers and their dollars.

Finally, there are innumerable real-life features of the game that any of us would be hard-pressed to explain to an elementary-aged child. Employee efficiency, for example, is called into play when various rides break down and your current maintenance staff is nowhere to be found (i.e., wandering around, taking a break, in the wrong part of the park).

You begin to lose revenue immediately until the ride is fixed, so you end up hiring more staff—at an additional expense, of course. You are given objectives at the start of the game, so you have a goal to work toward. And the most important lesson of all is learning the concept of "what price the market will bear." I doubt if any of these concepts are being taught in schools today.

The idea of teaching these valuable concepts to children in a rational, nonthreatening, and interesting way should be attractive to any parent or adult who cares about the future generation and its ability to understand some basic principles of economics and business. Let’s help our children realize that "learning" isn’t about preventing loggers from chopping down rainforests and figuring out how to recycle dad’s beer cans; it is about logic, thinking, and using their brains to solve problems. I’d allow this software package to take the place of a propaganda-spouting public school social studies teacher any day of the week.


TOPICS: Business/Economy; Editorial
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1 posted on 09/07/2001 8:51:55 AM PDT by Constitutionalist Conservative (http://c-pol.com)
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To: Constitutionalist Conservative
I can think of a lot of others things children should be taught before learning how to become a tycoon. This article is ludicrous.
2 posted on 09/07/2001 8:57:02 AM PDT by independentmind
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To: Constitutionalist Conservative
"Delta Force Land Warrior" might be a better choice for preparedness if lawmakers start to ban firearms.
3 posted on 09/07/2001 9:02:12 AM PDT by LurkedLongEnough
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To: independentmind
Well, if you were educated in gubmint schools, I can understand your knee-jerk reaction to the word "tycoon." But it's only pejorative to libs and those they brainwash. A tycoon can only become that by being extremely successful at satisfying customers to such an extent that they VOLUNTARILY part with their hard-earned dollars in large quantities. It's called free markets. It's wonderful. Children SHOULD be taught that lesson.
4 posted on 09/07/2001 9:06:39 AM PDT by VoodooEconomist
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To: independentmind
I can think of a lot of others things children should be taught before learning how to become a tycoon. This article is ludicrous.

You seem to be reacting to the emotionally-charged term 'tycoon'. What exactly do you find ludicrous about teaching kids the basic principles of running a business? Seems like this would be a good addition to a well-rounded education.

5 posted on 09/07/2001 9:07:52 AM PDT by Constitutionalist Conservative (http://c-pol.com)
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To: independentmind
God gives the increase! Christian Capitalism=acknowledgment of absolute limitations with mercy.
All 'other' Capitalism=denies the limitations of Christian Capitalism.
God gives the increase! (Where are the 'worldview-games'? A real education!)
6 posted on 09/07/2001 9:09:49 AM PDT by maestro
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To: VoodooEconomist
Well, if you were educated in gubmint schools, I can understand your knee-jerk reaction to the word "tycoon."

Who is the one around here who has knee-jerk reactions? I received one year of public schooling (kindergarten) in my life.

Responsibility and thrift used to be taught by parents by tying allowances to chores performed, and by encouraging their children to run newspaper routes, mow lawns, babysit for extra change, etc.(to say nothing of personal example.) If you think that a VIDEO GAME can replace real life experiences, it's you that needs a reality check.

I see nothing wrong with a business education (especially since I have one myself), but it should never be provided at the exclusion of other subjects like history, literature, etc. Americans need to examine the difference between real education and career training.

7 posted on 09/07/2001 9:15:17 AM PDT by independentmind
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To: Constitutionalist Conservative
See #7.
8 posted on 09/07/2001 9:21:25 AM PDT by independentmind
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To: Constitutionalist Conservative
My 13 year old daughter is living proof that everything in that article is true. She has learned so much from playing Roller Coaster Tycoon (that is when my turn is over). You start off with a simple park and are assigned a score based on how well the park is running (defined by # of guests, profitability, etc). If you meet or exceed a defined score you are allowed to create a new more exciting and more challenging difficult park.

I have preached to her the virtues of saving and budgeting her allowance and babysitting money until she was blue in the face, to little avail. This game really drove home $ handling skills in real and fun terms. She is now even saving for her car insurance when (and if ugh!) she starts driving three years from now.

P.S. There are also some really cool expansion packs you can buy as add-ons.

9 posted on 09/07/2001 9:29:30 AM PDT by Fair Paul
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To: independentmind
Independentmind, what should we teach our kids first? Ecology? Socialism? Public schools teach free market economics as an experimental, unjust alternative to socialism. If WE do not teach our kids capitalism, Who Will?
10 posted on 09/07/2001 9:32:51 AM PDT by Talkwire
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To: Talkwire
If WE do not teach our kids capitalism, Who Will?

Parents should teach their children what is good and what is bad, and how to discern the truth. Everything else follows from this knowledge.

11 posted on 09/07/2001 9:36:37 AM PDT by independentmind
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To: independentmind
If you think that a VIDEO GAME can replace real life experiences, it's you that needs a reality check.

So, your only real objection is using a video game to teach these principles?

12 posted on 09/07/2001 9:36:45 AM PDT by Constitutionalist Conservative (http://c-pol.com)
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To: Constitutionalist Conservative
One of my favorite Sega games is Aerobiz. Same concept as above, but you own an airline. You must buy/sell planes, raise and lower ticket prices, open and close routes, pick what planes to use on what routes, etc...

It is a great game.

13 posted on 09/07/2001 9:37:46 AM PDT by Phantom Lord
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To: Constitutionalist Conservative
I dislike the idea of capitalism taught as an ideology. It is only the means to an end. The most important things in life have little to do with making money.

I wonder about the claims that children are being taught socialist values in schools. Based on the surveys I've seen of college students, most have as their first priority to become rich. Getting married and raising a family are seen as undesirable goals. In my mind, there is something wrong with those priorities.

14 posted on 09/07/2001 9:42:54 AM PDT by independentmind
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To: Constitutionalist Conservative
I think it's a perfectly good idea.

I owned & ran businesses around here from 1974-1999, and businesses teach you things:

1- everything costs somebody something- somehow, somewhere, somebody pays....
2- the customer is King- no customers = no business...

I just wish the bleeding schools taught more basic business & less socialism! Business is where, after all, most people find a job, and a paycheck.

15 posted on 09/07/2001 9:55:16 AM PDT by backhoe
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To: VoodooEconomist
It's as simple as teaching your child how to provide for himself and his family.

I wish I had this stuff when I was growing up...instead, I got teachers who disliked money and private enterprise.

No economics in my high school. Actually, I am thinking of writing a book, based on a ficticious video game, that teaches youngish kids some things about business and economics...

16 posted on 09/07/2001 10:11:10 AM PDT by Benrand
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To: independentmind
We have certain physical needs that we cannot get around. Birds understand this...as do other mammals.

Making money is extremely important, if not only for the future standard of living of US citizens, but also for ourselves. Imagine if no one had trouble retiring...it could be possible. This country could become an incredbile place.

Schools teach enough social nonsense, they teach very little business and econ. It's NOT balanced.

17 posted on 09/07/2001 10:14:27 AM PDT by Benrand
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To: independentmind
I dislike the idea of capitalism taught as an ideology. It is only the means to an end. The most important things in life have little to do with making money.

Disagree. The most important things in life clearly include the basic necessities, like providing ourselves and our families with food and shelter, and hopefully with some measure of security and the resources to allow for a healthy measure of freedom in determining the the direction of our lives as well. These things have a very great deal to do with "making money".

This is easy to overlook or forget in a country as prosperous as America, but the wealth that supports and enriches human life has to be created, and goods and services must be produced with a level of efficiency which makes them affordable and distributes them where they are needed. The only way that has ever been found to do these things well is by linking them inextricably with the incentive of "making money". Thus very important things, such as whether we will live in freedom or slavery, whether we will realize the potentials of civilization or wallow in poverty and strife, whether people will eat or starve, have everything to do with "making money".

19 posted on 09/07/2001 11:09:40 AM PDT by Stultis
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To: Stultis
Thus very important things, such as whether we will live in freedom or slavery, whether we will realize the potentials of civilization or wallow in poverty and strife, whether people will eat or starve, have everything to do with "making money".

You need to explain how this country managed to survive its first hundred years without parents actively teaching "capitalism" to their children. Marx is the one who coined the phrase.

20 posted on 09/07/2001 11:15:58 AM PDT by independentmind
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