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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 2 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 3 © 2015 Jeffrey Cleveland
  • 4.Classroom Demographics Both intro to macro and micro 22-26 students 4 © 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?!” 6 © 2015 Jeffrey Cleveland
  • 7.Abstract Theory “You Can Get There From Here” Real Life (Meaningful Use) 7 © 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 8 © 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) 9 © 2015 Jeffrey Cleveland
  • 10.Map of Panem Transportation Grain 10 © 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 11 © 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 12 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.” 13 © 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 14 © 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 15 © 2015 Jeffrey Cleveland
  • 16.2. Production:Possibilities and Frontiers Two-sector specific-factors model 16 Guns Roses B2 B1 B3 A1 A2 A3 A4 C1 C2 © 2015 Jeffrey Cleveland
  • 17.2. Production:Possibilities and Frontiers 17 © 2015 Jeffrey Cleveland
  • 18.2. Production:Possibilities and Frontiers 18 © 2015 Jeffrey Cleveland
  • 19.2. Production:Possibilities and Frontiers 19 © 2015 Jeffrey Cleveland
  • 20.2. Production:Possibilities and Frontiers 20 © 2015 Jeffrey Cleveland
  • 21.2. Production:Possibilities and Frontiers 21 © 2015 Jeffrey Cleveland
  • 22.2. Production:Possibilities and Frontiers 22 © 2015 Jeffrey Cleveland
  • 23.2. Production:Possibilities and Frontiers 23 © 2015 Jeffrey Cleveland
  • 24.2. Production:Possibilities and Frontiers 24 © 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 25 2014 GDP and GDP/capita PPP (Source: IMF) © 2015 Jeffrey Cleveland
  • 26.3. GDP and Standards of Living 26 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 27 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 28 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 29 © 2015 Jeffrey Cleveland
  • 30.4. Distribution of Income 30 © 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 31 https://www.youtube.com/watch?v=_s7qgNMqDJI © 2015 Jeffrey Cleveland
  • 32.5. Game Theory and theTaking of Tesserae 32 © 2015 Jeffrey Cleveland
  • 33.6. A Special Case:Food as a Veblen Good? 33 © 2015 Jeffrey Cleveland
  • 34.6. A Special Case:Food as a Veblen Good? 34 © 2015 Jeffrey Cleveland
  • 35.6. A Special Case:Food as a Veblen Good? 35 © 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 40 © 2015 Jeffrey Cleveland
  • 41.Paper Grades and Final Grades 41 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 42 © 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