"Living in the Economy of Debt: A Lesson from BizTown"

Here's a rewritten version of the article in my own words:

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While listening to a journalist describe the “basic elements of the capitalist economy of debt,” I had a moment of real clarity—it finally hit me that the U.S. economy is driven more by debt than by profit. Despite living in America since 2004, I hadn’t fully realized this until now. It explains why so many Americans seem comfortable with credit card debt. They've been taught that borrowing—taking out loans and using credit—is necessary to keep the economy functioning, with the expectation that hard work will eventually pay it all back.

Personally, I’ve always had a different view. I only borrow money when I can contribute at least a third of the amount upfront and I’m confident that my income will comfortably cover the monthly payments—plus a little extra to pay it off early and reduce interest costs. In my two decades here, I’ve taken out just three loans: one for my house (which I’m now ahead of schedule on), one for a car (which I repaid in 16 months instead of 24), and another car loan I’m also on track to pay off early. I call this living within my means, and it’s a principle I’ve passed on to my son.

But what if someone can’t repay their loan? That’s what some kids faced during a BizTown simulation. To repay the bank, they started slashing costs—cutting employee salaries and benefits. It wasn’t the best strategy, but it made sense in their situation. Still, some businesses couldn’t recover. One insurance company, for example, borrowed $75 but only made $45 from sales, even after giving up $30 in profit to repay the bank. They still came up $45 short.

Then something strange happened. The businesses that were struggling suddenly received just enough money to cover their debts. The kids were thrilled, not questioning where the extra funds came from.

But the journalists did. When they asked the camp director, he admitted the camp had given the money to help the kids avoid feeling like failures. When the journalist pointed out that this sounded like a form of socialism—bailing out failing businesses—the director dodged the word and instead explained that the kids were still learning, and things like bankruptcy were lessons best saved for adulthood.

I’m honestly not sure if shielding them from failure is the right way to teach about real-world economics. What do you think?

Here's a rewritten version of the article in my own words:

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While listening to a journalist describe the “basic elements of the capitalist economy of debt,” I had a moment of real clarity—it finally hit me that the U.S. economy is driven more by debt than by profit. Despite living in America since 2004, I hadn’t fully realized this until now. It explains why so many Americans seem comfortable with credit card debt. They've been taught that borrowing—taking out loans and using credit—is necessary to keep the economy functioning, with the expectation that hard work will eventually pay it all back.

Personally, I’ve always had a different view. I only borrow money when I can contribute at least a third of the amount upfront and I’m confident that my income will comfortably cover the monthly payments—plus a little extra to pay it off early and reduce interest costs. In my two decades here, I’ve taken out just three loans: one for my house (which I’m now ahead of schedule on), one for a car (which I repaid in 16 months instead of 24), and another car loan I’m also on track to pay off early. I call this living within my means, and it’s a principle I’ve passed on to my son.

But what if someone can’t repay their loan? That’s what some kids faced during a BizTown simulation. To repay the bank, they started slashing costs—cutting employee salaries and benefits. It wasn’t the best strategy, but it made sense in their situation. Still, some businesses couldn’t recover. One insurance company, for example, borrowed $75 but only made $45 from sales, even after giving up $30 in profit to repay the bank. They still came up $45 short.

Then something strange happened. The businesses that were struggling suddenly received just enough money to cover their debts. The kids were thrilled, not questioning where the extra funds came from.

But the journalists did. When they asked the camp director, he admitted the camp had given the money to help the kids avoid feeling like failures. When the journalist pointed out that this sounded like a form of socialism—bailing out failing businesses—the director dodged the word and instead explained that the kids were still learning, and things like bankruptcy were lessons best saved for adulthood.

I’m honestly not sure if shielding them from failure is the right way to teach about real-world economics. What do you think?

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Would you like me to shorten this or adapt it for a specific use (e.g., blog post, essay, speech)?

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Would you like me to shorten this or adapt it for a specific use (e.g., blog post, essay, speech)?