Understanding Economic Systems through the "Two Cows" Analogy

1. Teacher Page Objective: The students will describe the forces that determine the distribution of goods and services in the free enterprise, socialist, and communist economic systems. • Information / Ideas / Suggestions: • This lesson is designed to be given after students have received some previous instruction regarding economic systems. The design of this lesson requires a working understanding of those systems in order to apply the knowledge. This would function more as a check of understanding rather than an initial lesson. • Though most adults have heard of the “two cows” analogy, it is unlikely that any of your students have heard it. Further, it can be a complicated thing to understand. It is unlikely that every student will be able to put this application into practice alone; therefore, it might be beneficial to do this assignment in a small group format. • A handout of an expanded version of the “two cows” analogy is provided in the event you would like to give it instead of using a projection. An optional information organizers is also provided if it would be helpful for students to use. • An example way to use this resource in a lesson: • 1. Split the students into small groups (maybe 3); 2. Give students the provided organizer sheet; 3. Discuss the idea of an analogy; 4. Have students make an analogy about something in their lives to each other in the group and then ask for volunteers to give them to the class; 5. Explain the two cows analogy in its basic form; 6. (optional) Show a video of the two cows analogy; 7. Go through your own power point and allow each group a few minutes to understand the slide and decide how to explain it to each other – and write it down; 8. When finished, ask students to create their own analogies for these three using anything they want and record it own their paper (this could be done as a group or individually) then have them discuss there products; 9. Give them a few minutes to update them if they need to fix them or change them, then the teacher can then lead a discussion of these analogies with the class while they take up the papers; 10. Pass out a quiz on economic systems (one is provided on the curriculum planner you could use called “Economic Systems Quiz” that will fit her nicely) tell students the paper they just completed is worth 50 points and the pop quiz is worth fifty points; they have five minutes to complete the quiz, etc, and so on . . . http://www.youtube.com/watch?v=YIPDJ1Cc_uw&feature=related Video versions of this are available on the web if you look around. This is one example.

2. The Two Cows Philosophy • FEUDALISM: You have two cows. The lord of the manor takes some of the milk. And all the cream. • PURE SOCIALISM: You have two cows. The government takes them and puts them in a barn with everyone else's cows. You have to take care of all the cows. The government gives you as much milk as you need. • FASCISM: You have two cows. The government takes both, hires you to take care of them, and sells you the milk. • PURE COMMUNISM: You have two cows. Your neighbors help you take care of them, and you all share the milk. • RUSSIAN COMMUNISM: You have two cows. You have to take care of them, but the government takes all the milk. • DICTATORSHIP: You have two cows. The government takes both and shoots you. • PURE DEMOCRACY: You have two cows. Your neighbors decide who gets the milk. • REPRESENTATIVE DEMOCRACY: You have two cows. Your neighbors pick someone to tell you who gets the milk. • BUREAUCRACY: You have two cows. At first the government regulates what you can feed them and when you can milk them. Then it pays you not to milk them. After that it takes both, shoots one, milks the other and pours the milk down the drain. Then it requires you to fill out forms accounting for the missing cows. • ANARCHY: You have two cows. Either you sell the milk at a fair price or your neighbors try to kill you and take the cows. • CAPITALISM: You have two cows. You lay one off, force the other to produce the milk of four cows. You are surprised when it drops dead. • ENVIRONMENTALISM: You have two cows. The government bans you from milking or killing them. • TOTALITARIANISM: You have two cows. The government takes them and denies they ever existed. Milk is banned.

3. Two Cows Economics Directions: In the box provided, explain each of the “Two Cows” analogies below. Be ready to share your explanation with the whole class. When we have shared this information as a class, then you will create your own analogies that explain how free enterprise, communism and socialism work. System Explain the Two Cows Analogy Create Your Own Analogy Socialism Capitalism Free Enterprise System

4. YOU HAVE TWO COWS . . .

5. You have two cows . . . • There is an analogy that has been around for years that attempts to use two cows to explain economic systems in their most basic form. We are going to look at those today and decide if we think they are good or not. Then you are going to come up with your own analogies to prove that you understand this stuff. • You will use your notes, textbooks or use your knowledge about economic systems in order to complete this activity. • You will have to remember a lot of what we have already learned to complete this, if you do not understand or remember, please ask. .

6. Your responsibility Explain each of these analogies in your own words as we go through. This can be difficult, but what do you think the deeper meaning of each of these might be. Think about what you have learned about communism, socialism, and capitalism.

7. pureSOCIALISM You have two cows. The government takes one and gives it to your neighbor. Karl Marx’s idea of communism takes many of its ideas from socialism

8. PureCOMMUNISM You have two cows. You give them to the Government, and then the Government then gives you some milk. Vladimir Lenin was the first leader of the Union of Soviet Socialist Republics – The Soviet Union

9. CAPITALISM / FREE ENTERPRISE You have two cows. You sell one and buy a bull. Alexander Hamilton helped established the United States’ free enterprise system

10. NAZISM / DICTATORSHIP You have two cows. The government takes both, then shoots you! Adolph Hitler was responsible for as many as 11 million people. German Federal Archive), Bild 183-S33882; Creative Commons 3.0

11. Your assignment Create your own analogies using some other type of example. It does not have to be a living thing like a cow, but it could be. Be sure to think about the milk thing before you start. Some animals don’t produce anything but poop! But hey, that might even be ok, we need do need fertilizer.