Eleanor Grindinger- Honorbound- “Simple? Yet, not a single person on the face of the earth knows how to make me.” Think about the things that go into making something as simple as a pencil: the numerous workers, manufacturers, and sellers. The citizens are considered the workers who create the pencil, and the economy is the pencil in which society forms by working together. If one step is skipped in the making of the pencil, the end result would not be a pencil. This concept is true in the economy. If people do not participate and support the economy correctly, then the economy would not be ideal. But why does this matter? It matters because with a stable economy, there will be an increase in jobs, which leads to more money for the worker, which leads to a better living experience, which, then, will eventually lead to more money supporting the economy. In a way, a stronger economy can provide more jobs, and with an increase in jobs, these workers can better support the economy. This is similar to the pencil example. With more supplies, there will be more workers, and with more workers, there will be more pencils. This concept of the simple pencil can be applied to other areas of economics.
As discussed in class, if one person can make eight books and one loaf of bread, then there will be an economy that heavily relies on the production of books. This would be an unreliable economy because there would be no variety in products. Thinking about this in relation to the pencil example, if you had one person who could makes eight pieces of wood and one piece of lead, then it would not be possible to effectively make as many pencils as needed. Therefore, the economy should have a variety of workers, who have a variety of skills, to create an even ratio of products. This is why in class people had to work together to find other people with skills that could help balance the classroom economy. The person who made eight books and one loaf of bread found someone who was making two books and nine loaves of bread, then the maximum utility of the two would be ten books and ten loaves of bread. Because the maximum utility measures the total amount of potential product and potential working ability of the workers, there was an even amount of bread and books being made. Because of this, the classroom economy could reach its full economic potential while maximizing the utility of the workers.
A simple pencil is made with many steps and the help of many workers. Similarly, the economy is created through many jobs which produce many different goods. The making of these goods stimulates the economy by finding a point of maximum utility in which many goods are being made. The point of maximum utility helps the economy make a nearly even amount of products in order that there is not an overpowering amount of one product. The economy is like a pencil; many workers perform different tasks, but without a single task, it would not be a pencil.
“”I, Pencil: My Family Tree as Told to Leonard E. Read”” Read, I, Pencil. Accessed June 12, 2016. http://econlib.org/library/Essays/rdPncl1.html.