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1. The Economics ofThe Hunger Games and Divergent: Making Dystopia Didactic
Jeffrey Cleveland, Howard Community College (MD)
Kim Holder, University of West Georgia
Brian O’Roark, Robert Morris University (PA)
NETA 11th Annual
Economics Teaching Conference
Dallas, Texas
November 5-6, 2015
2. Agenda
About my classroom
Background: The Hunger Games and Divergent
Macro- and microeconomic lessons
The assignment → results
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Got a question? Ask anytime.
© 2015 Jeffrey Cleveland
3. About Howard County, Maryland
Centrally located between Baltimore and Washington, DC
Population: 310,000 (5% of MD)
Median HH income: $109,865 (second in U.S.)
#6 “Best Places to Live,” MONEY Magazine
Howard Community College
14,000 credit students
“Great College to Work For,” 2009-2014, Chronicle of Higher Education
“You Can Get There From Here.”
Baltimore
Washington, DC
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© 2015 Jeffrey Cleveland
4. Classroom Demographics
Both intro to macro and micro
22-26 students
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© 2015 Jeffrey Cleveland
5. Economics: What WE Think
MR = MC
Y = C(Y - T) + I + G + NX
PV = F / (1 + i)n
(Δ Qd / Avg Qd) (Δ Pr / Avg Pr)
Ep =
Price
Quantity
S
D1
$3
50
D2
$4
70
Δ TVC Δ Q
MC =
5
© 2015 Jeffrey Cleveland
6. Economics: What THEY Think
“What have I gotten myself into?!”
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© 2015 Jeffrey Cleveland
7. Abstract Theory
“You Can Get There From Here”
Real Life (Meaningful Use)
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© 2015 Jeffrey Cleveland
8. The Hunger GamesSuzanne Collins
2008, Scholastic Press
First book in trilogy
Initially positioned as Young Adult Fiction
Print + digital: 28M HG/65M trilogy
Four-movie franchise, $2B
Numerous awards
First-person protagonist 16-year-old Katniss Everdeen
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© 2015 Jeffrey Cleveland
9. The Hunger Games: Plot Overview
Panem, a post-apocalyptic North America
The Capitol and 13 surrounding Districts
The Capitol: Seat of power, wealth, and control
Each district assigned specific production function (District 12: coal)
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© 2015 Jeffrey Cleveland
10. Map of Panem
Transportation
Grain
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© 2015 Jeffrey Cleveland
11. The Hunger Games Backstory
Uprising 74 years ago by the Districts against the Capitol
Capitol emerged victorious, destroying District 13 in the process
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© 2015 Jeffrey Cleveland
12. The Hunger Games Backstory
“War, terrible war. Widows, orphans, a motherless child. This was the uprising that rocked our land. Thirteen districts rebelled against the country that fed them, loved them, protected them. Brother turned on brother until nothing remained. And then came the peace, hard fought, sorely won. A people rose up from the ashes and a new era was born. But freedom has a cost. When the traitors were defeated, we swore as a nation we would never know this treason again. And so it was decreed that, each year, the various districts of Panem would offer up, in tribute, one young man and woman to fight to the death in a pageant of honor, courage and sacrifice. The lone victor, bathed in riches, would serve as a reminder of our generosity and our forgiveness. This is how we remember our past. This is how we safeguard our future.”
President Coriolanus Snow
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https://www.youtube.com/watch?v=KgEJyn69cw4
© 2015 Jeffrey Cleveland
13. The Treaty of the Treason
“In penance for their uprising, each District shall offer up a male and female (“Tributes”) between the ages of 12 and 18 at a public ‘Reaping.’
“These Tributes shall be delivered to the custody of the Capitol, then transferred to a public arena where they will Fight to the Death until a lone victor remains.
“Henceforth and forevermore this pageant shall be known as the Hunger Games.”
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© 2015 Jeffrey Cleveland
14. 1. Identifying theEconomic Organization
Gregory and Stuart (1999)
Decision-making structure
Centralized multitude of economic actors
Coordination and dissemination of information
Planning document pricing mechanism
Property ownership and rights
State common/co-op private
Incentives
Fear self-interest
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© 2015 Jeffrey Cleveland
15. 1. Identifying theEconomic Organization
Capitol controls ALL economic decisions
Monopsony; no inter-district trade
Absolute or comparative advantage?
Information
Plan quotas enforced through Peacekeepers
Property ownership
Capitol owns all factors of production
Incentives
Fear: the Reaping
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© 2015 Jeffrey Cleveland
16. 2. Production:Possibilities and Frontiers
Two-sector specific-factors model
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Guns
Roses
B2
B1
B3
A1
A2
A3
A4
C1
C2
© 2015 Jeffrey Cleveland
17. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
18. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
19. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
20. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
21. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
22. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
23. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
24. 2. Production:Possibilities and Frontiers
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© 2015 Jeffrey Cleveland
25. 3. GDP and Standards of Living
Defining economic activity and output
GDP per capita as a proxy for standard of living
Real-world comparative economics
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2014 GDP and GDP/capita PPP (Source: IMF)
© 2015 Jeffrey Cleveland
26. 3. GDP and Standards of Living
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Advantage: Capitol
Access to/control of technology enablers
Standing military force
Exploitation through resource extraction
Political control through economic dominance and restrictions
© 2015 Jeffrey Cleveland
27. 3. GDP and Standards of Living
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NO free trade
NO labor mobility
NO inter-district travel or communication
NO capital formation or investment
NO private property or ownership rights
NO opportunity for entrepreneurship or innovation
NO ability to pursue self-interests
NO ability to enter into non-coerced contracts
NO pursuit of the profit motive
© 2015 Jeffrey Cleveland
28. 3. GDP and Standards of Living
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Do dystopian leaders care about the standards of living of their citizens?
Drivers of economic growth
Free trade
Unrestricted travel and communication
Mobility of labor and capital
Private property ownership and rights
Consumer sovereignty
Entrepreneurship
Pursuit of self interests and the profit motive
Could the citizens of the Capitol have even higher standards of living today?
© 2015 Jeffrey Cleveland
29. 4. Distribution of Income
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© 2015 Jeffrey Cleveland
30. 4. Distribution of Income
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© 2015 Jeffrey Cleveland
31. 5. Game Theory and theTaking of Tesserae
Reaping Rules
All 12- to 18-year-olds
Cumulative entries over time
12-year old = one lottery entry
13-year-old = two entries → 18-year-old = seven entries
One boy, one girl from each of 12 districts
Tesserae
“A year's meager supply of grain and oil for one person”
Limited to the total number of family members
Also cumulative entries over time
(18-year-old) + (total family size = 5) + (tesserae each year) = 42 entries
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https://www.youtube.com/watch?v=_s7qgNMqDJI
© 2015 Jeffrey Cleveland
32. 5. Game Theory and theTaking of Tesserae
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© 2015 Jeffrey Cleveland
33. 6. A Special Case:Food as a Veblen Good?
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© 2015 Jeffrey Cleveland
34. 6. A Special Case:Food as a Veblen Good?
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© 2015 Jeffrey Cleveland
35. 6. A Special Case:Food as a Veblen Good?
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© 2015 Jeffrey Cleveland
36. Divergent: One Choice
Decides your friends
Defines your beliefs
Determines your loyalties – forever
Can transform you
A lifetime of opportunity costs at the ‘Choosing Ceremony’: “On an appointed day of every year, all sixteen-year-olds must select the faction to which they will devote the rest of their lives.”
37. Divergent: Division of Labor
The Factions are responsible for different things to help the society function.
Compassion/ Governance
Food
Law/ Technology
Protection
Truth???
38. Divergent: It’s All About Scarcity
Who controls the resources?
Abnegation does, but Erudite wants them.
Erudite’s claims:
Abnegation is withholding resources.
They are giving the “Factionless” too much.
39. Divergent: Production
There is a need for labor to create prosperity
As Dauntless/Erudite begins their takeover, they can’t kill EVERYONE.
Human capital and technology
The Factionless want to destroy data.
To deprive Erudite of power they need to deprive them of knowledge.
Sustainable production
Amity is a perfect example
This is a general theme of dystopian production.
40. The Hunger Games: The Assignment
1,500 word paper on various economic ideas
Worth 15% of final grade
Structure
Introduction/thesis
Critical thinking on key economic ideas
Conclusion/synthesis of thesis and thinking
Grading criteria
Spelling, grammar, and organization
Clarity of the summary
Economic analysis
Timeliness
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© 2015 Jeffrey Cleveland
41. Paper Grades and Final Grades
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n = 153
© 2015 Jeffrey Cleveland
42. Student Observations
“Through the use of properly implemented fiscal and monetary policy by the government, the nation of Panem could enjoy drastically higher standards of living than those that are currently present among the lower districts, and improve the general measure of standard of living (Gross Domestic Product per capita) for the nation of Panem as a whole.”
Griffin
“Collins shows that as long as this inefficient economic structure is in place, the odds will never be in their favor.”
Nicole
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© 2015 Jeffrey Cleveland
43. The Economics ofThe Hunger Games and Divergent: Making Dystopia Didactic
Jeffrey Cleveland, Howard Community College (MD)
Kim Holder, University of West Georgia
Brian O’Roark, Robert Morris University (PA)
NETA 11th Annual
Economics Teaching Conference
Dallas, Texas
November 5-6, 2015