The Theory

I envisioned a community where resources (money) provided by the top 1% of the richest people in the world are controlled in a closed system. Within this system there will be provisions for jobs (suitable for minimal education workers and otherwise) in the renewable energy industry, a school, housing, food, water, leisure activities, and other amenities that are necessary and conventionally enjoyed by low-middle class society. Each unit (family or individual) will need to pay a return (including interest) that is proportionate to their consumption in the community based on the salary earned from their jobs. Once this is paid back, the unit will be able to leave the closed system community and will be recommended for jobs in the outside world. Once all units pay back, the investor will have a greater sum of money than what they gave initially. Let's break this down...

The financial partnership

The potential for collaboration between the wealthy and the impoverished holds a promising path towards alleviating poverty. By pooling resources and expertise, this alliance could create a more effective and sustainable approach to addressing the root causes of poverty. The rich, equipped with financial resources and influential networks, can contribute to the development of comprehensive initiatives that offer education, job training, and access to essential services for the underprivileged. Simultaneously, the poor can offer valuable insights into their own challenges, ensuring that solutions are tailored to their specific needs and realities. This collaborative effort not only bridges economic disparities but also cultivates empathy and understanding across different societal strata. By working together, the wealthy can invest in meaningful change, while the impoverished can actively participate in their own upliftment, fostering a sense of ownership and empowerment.

The incentive

The central theme in these discussions revolves around the significant impact of financial incentives on various societal aspects. The reluctance of the wealthy to donate due to doubts about fund efficiency, the unintended consequences of the progressive tax system burdening the poor more than the rich, and the advantages gained by philanthropists all underscore the powerful role of financial motives. These conversations also explore the intricate relationship between financial incentives, changes in public policy, and philanthropic actions, while raising questions about taxpayer involvement in charity decisions and the compatibility of philanthropy with democratic values. Furthermore, the challenges faced by programs like SEED in addressing issues of race, gender, and disability reveal how financial dynamics intersect with systemic prejudices. Ultimately, these discussions emphasize the pervasive influence of financial factors in shaping societal norms and philanthropic endeavors.

What exists in the community

The simulation begins with a large investment made by a rich philanthropist which goes towards creating the infrastructure for a new community, and the people who are moved into this town are those in desperate need of escape from the poverty cycle. Through a series of decisions made by players on job assignments and external real-world factors (such as healthcare and education) players help a family in the community pay back their share of the loan. The simulation addressed the risks faced by the rich and the pride of the poor. As such, I realized that in order to create a truly high-functioning sustainable community that promotes economic growth, I had to hone in on the desires of the rich AND the poor. The rich want to be richer, and the poor want to be self-sufficient.

Ethical considerations

The most significant ethical consideration was also a challenge. I had to make while creating this simulation was the fact that people might not want to be “controlled” in this manner. Essentially, the people will be given rationed food, will be studying in a common education system, and will only have one option of a place to work. In a capitalist economy, incentives are of the utmost importance. Market prices, the profit-and-loss system of accounting, and private property rights provide an efficient, interrelated system of incentives to guide and direct economic behavior. Capitalism is based on the theory that incentives matter! Under socialism, incentives either play a minimal role or are ignored totally. A centrally planned economy without market prices or profits, where property is owned by the state, is a system without an effective incentive mechanism to direct economic activity. By failing to emphasize incentives, socialism is a theory inconsistent with human nature and is therefore doomed to fail. Socialism is based on the theory that incentives don’t matter!

Limitations

There are three main limitations that this simulation still experiences that I am working on improving:

Technical - The 2D video game didn’t go exactly as planned, as it doesn’t account for all the details and specificities that the spreadsheet does. This is due to a lack of the proper software needed to build this with code. I have used basic code to build this game on a web interface, but more guidance on how to build an app with engaging visual effects aligning with the choices need to be made would really elevate this project.
Empirical evidence - While working on the project, I focused on the financial incentive that needed to be provided to the “rich people,” but after feedback from my AP Micro and AP Macro teacher, Mrs. Hurt, I realized that social incentives are also very powerful. I got feedback from my AP Calculus AB teacher who said something very important; “in the end, money is money” and that the long term returns of the investment that I should work on including are more further education opportunities such as pre-college programs, courses on how to effectively manage money, and mindfulness, which all contribute to a higher quality of life.
Policy making - At the moment, my approach is focused on how money can be paid back in time while simultaneously providing a living that covers basic needs in a closed economic system. In order to see the effects of this simulation as it comes to life on the real world economy, I must consider policy decisions must take into account long-term economic, social, and environmental implications. These reforms also included: tax and pension reforms, changes in the transport and energy sectors, as well as an increase in funding in the agricultural sector for environmental and rural development. Employment and social development measures were introduced, targeting youths, the unemployed, and immigrants.