Free or Equal Questions

Audrey Post
1. If the government gives everybody the same freedom to work and reap the rewards, some
will do better than others. The result will be equality of opportunity, but not equality of
outcome.
2. Immigrants who arrived in the late-1800s/early-1900s found that America was truly a
land of opportunity. Describe the factors these immigrants encountered which helped
them thrive
There were many factors these immigrants encountered which helped them thrive.
They were rewarded for hard work, enterprise and ability. There were few rules and
regulation which made it easier for the immigrants to start a business. There were no
licenses, permits or red tape to restrict them in any way. The free market is what
helped them thrive when they arrived in the late-1800s/early-1900s.
3. Although Hong Kong had no prospects, no natural resources & little land that could be
cultivated, it became an economic powerhouse. How?
Hong Kong became a powerhouse because they had economic freedom which helped
them thrive and develop in a natural way. There were no tariffs, regulations or
policies that restricted them from innovating ways to make their lives better. There
was no government intervention, so the people where free to make decision for
themselves to better their lives and others.
4. Free Markets have spread around the world. At the same time, weve seen the fastest
human progress ever, and it has been led by the countries that opened up their
economies. In fact, average incomes around the world have almost doubled. Globally,
extreme poverty has been more than halved since Milton Friedman did his series in 1980.
Amazingly, 730 million people have been liberated from poverty.
5. Explain how the lead pencil & the smart phone are examples of invisible hands.
Adam Smiths theory of the invisible hand means that as people follow their own
self-interest, they in turn benefit society as a whole. The lead pencil and the smart
phone are examples of the invisible hand because people from different countries
and cultures cooperate together in their own self-interest while society benefits from
the use of their product. One person would not be able to make a pencil or smart
phone without combining their resources and knowledge to make it happen.
6. Explain the concept of creative destruction as described in the Free or Equal video.

The concept of creative destruction refers to old business collapsing because new
businesses have created and innovated new ways of doing things. Businesses that do
not adapt to the changing environment cannot survive. In the video, it says, stop
doing old things in old ways and start doing innovative things in better ways. Being
creative and innovating new things can be beneficial but it can also be destructive,
causing other businesses to fail and people to lose their jobs.
7. Explain why are Swedish entrepreneurs the oldest in the world, as described in the Free
or Equal video?
Swedish entrepreneurs are considered the oldest in the world because the big
businesses in Sweden average 94 years old. There are no incentives or policies in
place that encourage young Swedens to innovate new things and to create new
companies. The young entrepreneurs move to Briton or the United States because the
rewards are much greater.
8. They (the Founding Fathers) were a wise and learned group of people. They had learned
the lesson of history. The great danger to freedom is the concentration of power,
especially in the hands of a government. They were determined to protect the citizens of
the new United States of America from that danger. And they crafted their constitution
with that in mind.
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.
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.
1. Would you approve of this method in calculating your final grade? Why or why
not?
2. Would this differ from fair shares for all economically? Why or why not?
The concept fair grades for all means that we take away points from those students
who worked hard to earn top grades in the class and give those points to those students
who did very little knowing that they too will be rewarded the same as those who put in

all the effort. The motivation for excelling in a class and becoming well educated would
vanish if this were the case. Is it fair to give the reward of hard work to those who have
not made the effort themselves to learn the material to acquire a good grade? I do not
approve of this method because I work extremely hard to earn good grades and to do the
best that I can. The reward of knowledge and good grades is what motivates me to do my
best and if the concept fair grades for all were in place then my motivation for striving
to do my best in a class would diminish.
The concept fair shares for all means that successful people will be required to
redistribute their income and wealth to those less fortunate. I do not see a difference
between fair grades for all and fair shares for all. Both require hard work and
diligence to acquire. People are driven to succeed based on their wants and desire. If the
wealth was distributed evenly among everyone, where would the motivation to improve
come from? There would be no incentive to work hard for what one wants. Motivation
for wealth is what inspires people to innovate and invent new ideas and ways of doing
things. Just as hard workers create wealth, wealth also creates hard workers in people
who wish to be rewarded for their efforts monetarily.
Some people may argue that those who acquire and control the majority of wealth in
the world is unfair and that they should be required to redistribute that wealth among
everyone. These people may not understand the many good things that come about from
those who are wealthy. Many of the worlds richest people donate their money to better
the community and help those suffering around the world. They build libraries, help
educate the uneducated, feed the hungry, donate to scientific research to improve quality
of life, and much more. If the wealth was distributed among everyone then these types of
accomplishments would not be possible. The money would be spread widely among
others who would use that money to buy bigger houses, better cars, or items that are of no
importance or use to society as a whole. Fair grades for all and fair shares for all
take away motivation from people to strive and work hard for the things that they want in
life.