Summer camp capitalism
6Digest
This episode of Planet Money delves into the world of Biz Town, a summer camp where kids aged 10-14 learn about finance, business, and the free market economy through a simulated economy. The camp features a day-long simulation where kids take on jobs, open checking accounts, and run businesses, all while navigating the complexities of debt and loan repayment. The episode follows Asher, an 11-year-old aspiring CEO, as he prepares for a job interview and navigates the challenges of running a bank in the Biz Town economy. The episode highlights the importance of financial literacy and the interconnectedness of the economy, showcasing how businesses rely on each other and how individual decisions impact the overall economic landscape. While the camp provides a valuable experience for kids, introducing them to the essential economic rituals of adulthood, the episode also raises questions about whether the camp's "no failure" policy provides a realistic view of the free market economy. The episode concludes with the kids reflecting on their experiences and sharing their insights and advice for future Biz Town participants. Biz Town offers kids a chance to experience the world of adulthood, albeit in a safe and controlled environment, learning about the economy while having fun and making new friends.
Outlines
Biz Town: A Summer Camp for Young Entrepreneurs
This episode of Planet Money explores Biz Town, a summer camp where kids learn about the free market economy through a simulated economy. They take on jobs, open checking accounts, and learn how to track their spending.
The Biz Town Economy: A Simulated World of Finance
Biz Town is a summer camp where kids between 10 and 14 years old learn about finance, business, and the free market economy. They take on jobs, open checking accounts, and learn how to track their spending. The centerpiece of Biz Town is a day-long simulated economy where kids take on jobs and run businesses. The economy runs on debt, with businesses taking out loans from the two banks to start their day.
The Lessons of Biz Town: A Glimpse into the Free Market
The nonprofit behind Biz Town, Junior Achievement, aims to give kids a basic understanding of the free enterprise system. The camp teaches them about the interconnectedness of the economy and the importance of taking care of themselves and society. The episode explores the challenges and rewards of running a business in the Biz Town economy, highlighting the importance of financial literacy and responsible decision-making.
The Reality of Biz Town: A Rose-Tinted View?
The fact that no businesses are allowed to fail in Biz Town raises questions about whether the camp provides a realistic view of the free market economy. However, it does provide a valuable experience for kids, introducing them to the essential economic rituals of adulthood, such as filling out job applications and managing finances.
Closing Biz Town: Reflections and Insights
After the simulation ends, the kids clean up their workplaces and reflect on their experiences. They share their insights and advice for future Biz Town participants. Biz Town offers kids a chance to experience the world of adulthood, albeit in a safe and controlled environment. They learn about the economy, but also have fun and make new friends.
Keywords
Biz Town
A summer camp where kids learn about the free market economy through a simulated economy. They take on jobs, open checking accounts, and learn how to track their spending.
Free Market Economy
An economic system where prices and production are determined by supply and demand, with minimal government intervention.
Simulated Economy
A model or representation of a real economy, often used for educational or research purposes.
Debt
Money that is owed to another person or entity, often with interest.
Loan
A sum of money that is borrowed from a lender, typically with interest, and must be repaid over time.
Subsidy
Financial assistance provided by a government or other organization to support a particular industry or activity.
Financial Literacy
The ability to understand and manage financial concepts and resources.
Junior Achievement
A nonprofit organization that provides educational programs for young people about business, economics, and entrepreneurship.
Q&A
What is the purpose of Biz Town?
Biz Town is a summer camp designed to teach kids about the free market economy through a simulated economy. It aims to give them a basic understanding of the free enterprise system and the interconnectedness of the economy.
How does the Biz Town economy work?
The Biz Town economy runs on debt. Businesses start with zero dollars and must take out loans from the banks to operate. They then generate revenue by selling goods and services to other businesses and consumers. The goal is to pay back the loan with interest by the end of the day.
What are the main lessons that kids learn at Biz Town?
Kids learn about the importance of managing finances, making responsible decisions, and understanding the interconnectedness of the economy. They also learn about the different roles in the economy, from CEOs to workers.
Does Biz Town provide a realistic view of the free market economy?
The fact that no businesses are allowed to fail in Biz Town raises questions about whether the camp provides a realistic view of the free market economy. However, it does provide a valuable experience for kids, introducing them to the essential economic rituals of adulthood.
What are some of the challenges that businesses face in Biz Town?
Businesses face challenges such as managing their finances, generating revenue, and paying back their loans. They also have to compete with other businesses for customers and resources.
What is the role of the bankers in Biz Town?
The bankers are responsible for approving loans, managing the flow of money, and collecting debts. They are also in competition to see who can collect their debts first.
What is the significance of the subsidies provided to businesses in Biz Town?
The subsidies ensure that no businesses fail in Biz Town, providing a more positive and less stressful experience for the kids. However, it also raises questions about whether the camp provides a realistic view of the free market economy.
Show Notes
That's part of the idea behind a summer camp at JA BizTown, in Portland, Oregon. Kids at the camp run tiny fake businesses in a tiny fake town. There are retail stores and restaurants, insurance companies and power utilities. As camp begins, a gaggle of child CEOs take out business loans from their peers in the tiny fake banking industry – and they spend the day racing to run their businesses profitably enough to get out of debt before pickup time.
On today's show, Planet Money takes a romp through capitalism summer camp. Will the children of BizTown be able to make ends meet and pay back their loans to the banks? Or will a string of defaults send this dollhouse economy into financial collapse? It's Shark Tank meets Lord of the Flies.
This episode was hosted by Alexi Horowitz-Ghazi and Sally Helm. It was produced by James Sneed, and edited by Jess Jiang. It was fact-checked by Sierra Juarez and engineered by Gilly Moon. Planet Money's executive producer is Alex Goldmark.
Help support Planet Money and hear our bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.
Learn more about sponsor message choices: podcastchoices.com/adchoices
NPR Privacy Policy
Table of contents
United States
the question of isn't it just socialism at the end is absolutely hilarious. the counselor had no idea how to respond because it was. it shows that even in kids game capitalism, not everyone will be able to survive and kids will have to be bailed out.