ECONOMIC RESEARCH PROJECT

RESEARCH:  WHO THINKS WHAT ABOUT THE ECONOMY

PURPOSE
The purpose of this project is to:
  1) Identify bias to Supply Side or Consumer Side of Economics by:
        a)Sex
               Male
               Female
               Other
        b)Economic Status
               Small Business Owner
               Corporate Management
               Small Business Worker
               Corporate Worker
         c)Political Party
                Republican
                Democrate
                Other
          d)Age
                 Under 18
                 18 to 30
                 31 to 60
                 Over 60




PROCEEDURE
1) THE "LECTURE" (PRESENTED BELOW) WILL BE GIVEN TO AN AUDIENCE
     WHERE EACH PARTICIPANT WILL HAVE A RESPONSE PAPER  CHECKING   OFF  THEIR IDENTITY  (SEE PURPOSE ABOVE) WITH THEIR NAME AND LAST 5 DIGITS OF THEIR SSN.

2) THE LECTURE WILL BE GIVEN IN NUMBERED  ECONOMIC CONCEPTS.  PARTICIPANTS WILL EVALUATE EACH CONCEPT BY PLACING AN A IF THEY AGREE WITH THE CONCEPT OR A D IF THEY DISAGREE WITH THE CONCEPT ON THE NUMBERED LINE ON THE RESPONSE PAPER.  IF THE RESPONDENT DOES NOT COMPLETELY AGREE OR DISAGREE, THEY ARE TO LEAVE THE SPACE BLANK.
3) RESPONSE SHEETS WILL BE COLLECTED AND NEW RESPONSE SHEETS WILL BE HANDED OUT.  EACH PARTICIPANT WILL CHECK OFF THEIR IDENTITY ALONG WITH THEIR NAME AND LAST 5 DIGITS OF THEIR SSN AS IN (1) ABOVE.
4) THE LECTURE WILL BE GIVEN AGAIN WITH CONCEPTYS GIVEN IN DIFFERENT ORDER AND PARTICIPANTS WILL EVALUATE EACH  CONCEPT AS IN 2 ABOVE.

LECTURE
1)THE FREE MARKET BUSINESS ENTERPRISE SYSTEM IS A SUPERIOR METHOD FOR DISTRIBUTING MATERIAL WEALTH IN A DEMOCRACY.
(MARK RESPONSE SHEETS)
2) GOODS ARE PRODUCED AND SERVICES ARE PRIVIDED BY SUPPLIERS AND PURCHASED BY CONSUMERS. THEORETICALLY, NEARLY EVERYONE IN THE SOCIETY IS A CONSUMER, AND EVERYONE IS A SUPPLIER.  WORKERS WHO ARE EMPLOYED BY A BUSINESS  ARE CONSIDERED SUPPLIERS.    THE  COST  OF GOODS AND SERVICES IS DETERMINED BY COSTS TO THE BUSINESS OWNER TO PRODUCE THE GOODS AND/OR SERVICE.  THE PRICE IS DETERMINED BY SUPPLY AND DEMAND. (THE AMOUNT THAT THE CONSUMER WILL PAY FOR THE GOODS OR SERVICE.)   THE DIFFERENCE BETWEEN THE COST AND THE PRICE IS THE BUSINESS OWNER'S PROFIT OR LOSS.

TO MAKE THIS SYSTEM FUNCTION  THE GOVERNMENT HAS TO PROVIDE A MEDIUM OF EXCHANGE -- MONEY.  TO FUNCTION PERFECTLY, THERE MUST BE A BALANCE BETWEEN SUPPLY AND DEMAND.  CONSUMERS MUST HAVE SUFFICIENT FUNDS TO PURCHASE THE GOODS AND SERVICES SUPPLIED.  THEORETICALLY, THE FREE MARKET WILL BALANCE THE ECONOMY.  WHEN THERE IS AN OVER SUPPLY, THE PRICE WILL GO DOWN; AND WHEN THERE IS A SHORTAGE OF SUPPLY,  THE PRICE WILL GO UP.
THIS  IS A WIN, WIN  SITUATION.
(MARK RESPONSE SHEETS FOR #2)
3)WHILE THE TOTAL ECONOMY WILL SURVIVE, INDIVIDUAL BUSINESSES AND INDIVIDUAL WORKERS MAY SUFFER.  THE BUSINESS THAT OVER PRODUCED MAY SUFFER A LOSS AND IF THAT LOSS IS GREAT ENOUGH, THAT BUSINESS MAY GO BANKRUPT.  WORKERS IN A BANKRUPT OR LOOSING BUSINESS MAY LOOSE THEIR JOBS AND BE UNABLE  TO PURCHASE NECESSITIES TO SURVIVE.
(MARK RESPONSE SHEETS FOR #3) 

IN A GOVERNMENT WITH A CONTROLLED ECONOMY WHERE THE AMOUNT OF GOODS AND SERVICES ARE CONTROLLED TO MEET THE DETERMINED
CONSUMPTION FOR A STATED PERIOD OF TIME (CALLED THE 5 YEAR PLAN OR 10 YEAR PLAN),  OVER PRODUCTION MAY BE CONTROLLED AND BUSINESSES MAY BE PROTECTED AGAINST BANKRUPTCY,  BUT UNDER PRODUCTION OR LOSSES OF CERTAIN BASIC NECESSITIES CAUSED BY AN ACT OF NATURE MAY PRODUCE HARDSHIP FOR ALL CONSUMERS AND BUSINESS OWNERS IN THEIR ROLE AS CONSUMERS.  IT ALSO TAKES AWAY THE INDIVIDUAL FREEDOMS OF THE PEOPLE IN THE SOCIETY.
(MARK RESPONSE SHEETS FOR #4

Under the Free Market Business Enterprise System there is the risk of loss for the individual consumer as well as the Business owner.  Each consumer is a personal business enterprise with the risk of not having enough income to cover expenses and consequently go into personal bankruptcy.  CONSUMER EDUCATION THEREFORE SHOULD BE AVAILABLE FOR ALL STUDENTS BEFORE GRADUATION FROM HIGH SCHOOL.
(MARK RESPOSE SHEETS FOR #5)

THE DEVELOPMENT OF THE CORPORATION PROVIDED AN ESCAPE FROM PERSONAL LIABILITY FOR THE BUSINESS OWNER IF THE BUSINESS GOES BANKRUPT AND THE BUSINESS IS INCORPORATED.  THE "LIMITED LIABILITY" PROVISION IN A CORPORATION ALLOWS THE BUSINESS OWNER TO SEPARATE THEIR PERSONAL HOLDINGS FROM PERSONAL HOLDINGS
AND IF THE BUSINESS GOES BANKRUPT, ONLY BUSINESS HOLDINGS WOULD BE LOST.
(MARK RESPOSE SHEETS FOR #6)

THE CORPORATION ALSO OPENED UP A NEW SIDE OF THE ECONOMY, THE FINANCIAL OR INVESTMENT SIDE.  THE FINANCIAL SIDE IS GENERALLY CONSIDERED PART OF THE SUPPLY SIDE BUT IN REALITY IT IS A DEFINITE ENTITY OF ITS OWN.  IT HAS EVOLVED INTO  A LEGALIZED FORM OF GAMBLING.  TO THE AVERAGE INVESTOR, SHARES OF STOCK WERE LESS OF AN INVESTMENT AND MORE OF A  PICK THAT WOULD GO UP IN PRICE TO SELL FOR A PROFIT.  CEO'S OF CORPORATIONS WOULD TAKE BIGGER RISKS BECAUSE THE BIGGER THE RISK, THE BIGGER THE GAIN; AND THE BIGGER THE LOSS IF NOT SUCCESSFUL.  THE LOSS TO THE CEO WAS NOT THE GREATEST CONCERN AS THE LOSS WOULD BE BORN SOLELY BY THE SHAREHOLDERS.  AS IN MOST GAMBLING, IT IS WIN OR LOOSE.  THE MORAL CONCEPT OF RIGHT OR WRONG WAS A SECONDARY CONSIDERATION.
(MARK RESPONSE SHEETS FOR #7)

WWII MAY WELL HAVE BEEN RESPONSIBLE FOR THE DRAMATC CHANGE IN ECONOMIC POLICY FROM RESPONSIBLE CONSERVATISM TO UNRESTRAINED PRODUCTION.  THE GOVERNMENT'S "COST PLUS 10% CONTRACT" WITH BUSINESS WON THE WAR AND ALLOWED THOUSANDS OF ENTREPENEURS TO JOIN THE ELITE BODY OF "ROBBER BARONS" AS THE NEW "FINANCIAL BARONS.
(MARK RESPONSE SHEETS FOR #8)

THE GOVERNMENT CHAMPIONED THE SUPPLY/FINANCIAL SIDE OF THE ECONOMY AS THE PATH TO PROSPERITY.  A SERIES OF ILL ADVISED "WARS" CAMOFLOGED THE NATION'S SLIDE INTO CATOSTROPIC DEBT.
(MARK RESPONSE SHEETS FOR #10)

THE NATION POLARIZED INTO TWO PARTIES, ONE FAVORING THE SUPPLY/ FINANCIAL SIDE AND THE OTHER THE CONSUMER SIDE.  POLIZERATION PROMOTED EXTREMISM ON BOTH SIDES RESULTING IN  CONFRONTATION RATHER THAN COOPERATION 
(MARK RESPONSE SHEETS FOR #11)

THIS CONFRONTATION  WAS GOOD FOR THE NATION  AS IT PROMOTED THE BEST INTERESTS FOR BOTH SIDES.
(MARK RESPONSE SHEETS FOR #12)

THIS CONFRONTATION WAS NOT GOOD FOR THE NATION AS IT LED TO AN IMBALANCE CAUSING A DEPRESSED ECONOMY.
(MARK RESPONSE SHEETS FOR #13)

THE SOLUTION FOR  ECONOMIC RECOVERY  IS FOR THE GOVERNMENT TO
STIMULATE THE  SUPPLY/FINANCIAL  SIDE OF THE ECONOMY PROVIDING  JOBS FOR CONSUMERS.
(MARK RESPONSE SHEETS FOR #14)

THE SOLUTION FOR ECONOMIC RECOVERY IS FOR THE GOVERNMENT TO INVEST IN THE NATION (BORROW MONEY/SELL RECOVERY BONDS) AND FUND EDUCATION, LAW ENFORCEMENT AND OTHER NECESSARY PUBLIC SERVICE POSITIONS; PLUS STIMULATE PRIVATE SECTOR WITH CONTRACTS TO RESTORE INFRASTRUCTOR.
(MARK RESPONSE SHEETS FOR #15)