Adolfo Levano ECON 1740

E-Portfolio ECON 1740

1. Professor Milton Friedmans research led him to believe in the power of free
markets and economic freedoms.
2. If the government gives everybody the same freedom to work . . . some will do
better than others. The result will be equality of opportunity, but not 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, they bear
the cost. If they succeed, they get the benefit.
4. In the example of the lead pencil, what conclusion did Professor Friedman reach
in the context of invisible hands?

Almost everything relies on the help of another person. This relationship not
only strengthens the economy but fosters love and peace between the
people of the world.

5. Economists call the constant renewal of the economy creative destruction. If

we want to increase our wealth and opportunities, we have to stop doing old
things in old ways and start doing innovative things in better ways. In other
words, we have to be creative.
6. An example of creative destruction was used in the video. What technology was
created? What was destroyed? Why was this new technology so important?

Created: The cell phone was created.

Destroyed: When consumers moved on to new goods it can be difficult and
painful because old factories and old shops close and people lose their jobs.
Why important: The cell phone is important because it can make business
better and it can keep us connected worldwide.

7. The idea that the economic race should be so arranged that everybody ends at
the finish line at the same time rather than everyone starts at the beginning line at
the same time. This concept raises a very serious problem for freedom. It is clearly
in conflict with it, since it requires that the freedom of some be restricted in order
to provide the greater benefits to others.
8. In the last 100 years with relatively free markets, we have created more wealth
than in the 100,000 years before.
9. As Milton Friedman said, The society that puts equality before freedom will end
up with neither. The society that puts freedom before equality will end up with a
great measure of both.

Adolfo Levano ECON 1740

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
In my opinion, I would not appreciate this method of calculating my final
grade for the simple reason that I believe that if a person has not put in the effort,
they dont deserve the grade. In class and in society, it feels unfair to work your tail
off, make sacrifices, and manage your time and resources well, and then see a
neighbor or classmate who doesnt take the time to do these things but still gets all
the benefits. All of a sudden a degree is worthless now.
In my personal experience, if I knew that I was getting a C no matter how
much or how little effort I put into the class then that would take all my motivation
away. I would do the bare minimum or no work at all. On the other hand, if I know
that I can get an A in this class because of my own efforts and hard work I am
going to put the effort in. If society were to adopt the fair shares for all
philosophy, it removes the incentive for people to do the very best that they can.
Theres no reason to work hard, to take risks, or to invest hard-earned money if the
outcome is always going to be the same.
I do understand that some of my fellow students may not have had
advantages in education and upbringing. I am a little less emphatic because I
personally didnt have advantages in education or upbringing, but in the interest of
equality of opportunity, there could be programs or tutoring to help the students
that need it. However, I think it would be fair to make such tutoring available to all
students and at the end of the day every student has to earn their own grade.
Similarly in society, some people may need help completing their education or
finding a job, but every persons ultimate success should be dependent on how hard
they work.

Adolfo Levano ECON 1740

Reflective Writing
Communicate Effectively

This assignment has definitely helped me to communicate more effectively. Especially

question number 10 because I wanted to explain my position in this controversial topic of
equality of opportunity versus equality of income.

Think Critically & Creatively

This assignment has also helped me with improving my critical and creative thinking
because it has helped me look at different points of view that I may not necessary agree
with.