Credit Directions

Directions: This simulation consists of five groups government, businesses, banks, stores and worker groups. The object of the game is to survive with enough money to satisfy your needs and wants by the last round. During rounds the following should be followed: Government: Set policies or propose changes to benefit all groups. Each round you are required to submit to the teacher one economic policy to the teacher who will either approve or veto the legislative change proposal. You are also required to send one person from your team to each group to collect taxes. This is done by giving each group a tax bill card during the 1st round to start off with. Afterwards, during the round you must report to each group and collect that card, at which point that group must pay you 1 dollar to get the card back or whatever the tax rate is because each group has a different tax rate. Workers 1/round, business and banks 1 dollar for every six dollars on hand, store 1 dollar for every ten dollars. Think of the tax bill card as your reminder that the group owes you 1 dollar and this must be done every round. Business: Your job during each round is to watch the workers work for 1 minute of time before paying them their wage. Also in the round you must pay your tax bill at a rate of 1 dollar for every 6 dollars of on hand cash. You must also determine how much of a product to produce so check with the store to determine what people are buying and how much. You win by producing more than your competitor, not ending up with a surplus and not going bankrupt. Bank: Your job is to collect mortgage payments for home loans from workers, business and pay taxes (at a rate of 1 dollar for every 6 dollars of on hand cash). Workers must pay your bank for home loans. This is done by giving each worker team a mortgage card which each group will start off with. During the round you must report to each group and collect that card, at which point that group must pay you 1 dollar to get the card back. Think of the mortgage card as your reminder that the group owes you 1 dollar and this must be done every round. You win by remaining profitable. Banks can also create credit for stores by issuing credit to store card. You can also distribute credit cards to the store owners. Store: Every round you must sell needs and wants to worker group members at a cost of 1 dollar for every card. This sounds dumb, but every round the worker group members will pay you 1 dollar for the food card. This is done by giving each worker team a food card which each group will start off with. During the round you must report to each group and collect that card, at which point that group must pay you 1 dollar to get the card back. Think of the food card as your reminder that the group owes you 1 dollar and this must be done every round. You must also pay your tax bill at a rate of 1 dollar for every ten dollars of on hand cash. Additionally, you need to create an advertisement to convince people to buy your product. Remember, there are two stores so consumers do have a choice. Your group also has the extra item cards showing good that are wants. Each round you must persuade people to buy the item with your advertisement sales pitch. You win by having more than your rival Stores can also go to the bank and obtain the credit card, which can then be issued to the worker groups. To issue credit cards, go to the bank and turn in your credit application. Workers: Your job is to first work for 1 minute for the business group before getting paid. After getting paid you have to pay 1 dollar to the government for taxes, 2 dollar to either of the two stores for your food card, 1 dollar to the bank for your home loan. If you are designated a socialist in this group then you must critique the system every round for the flaws in the system. In order to win you must also obtain 3 of the 5 special item cards from the store.

Our Groups 2 Students 1 Group 2 Students 1 Group 2 Students 2 Group TOTAL 4 4 Students 2 Group White Couple Black Couple Farmer Couple Socialists Immigrant Couple 1920 Department Stores

Start Up 10.00 loan from bank paid round five at 15.00 All food cards 25.00 All tax cards 20.00 All mortgage cards All store credit card 10.00 loan from bank paid round five at 15.00 All food cards 10.00 Blank cpu paper to make advertisements All credit applications Groups White Couple 5 Black Couple 4 Farmer Couple 4 Immigrant Couple 3 Socialists 3 1920 Department Stores

What to do during rounds Set policies by creating one economic policy/round. Check proposal with teacher Lend money to businesses, issue credit cards to stores, take saved money from workers and/or loan money to entrepreneurs as well as issue credit Try to predict demand, make money and pay workers Create ads to entice people to buy in your store and issue credit cards after obtaining the application and credit store card Groups White Couple Black Couple Farmer Couple Socialists Immigrant Couple Students in this group buy what they need. In order to win you must also obtain 3 of the 5 special item cards from the store and not go bankrupt. 1920 Department Stores

Taxes Taxes not on this chart as every group pays taxes to the government. Rates are on the directions. Taxes Taxes Tax Breaks Taxes Payment for goods and food card. Food card costs .50 (round up) Business loan paid to bank Food and goods given to store Loan to business Workers work for 1 minute of each round. Movements determined by owners Workers paid 3.00 Food card to workers as well as advertisements to persuade Loan for house paid to bank at 1.00 Loan to workers charged at 1.00 Food card purchased at 2.00