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./ Economic Education Newsletter


America's Goal - Is It Still Growth?
Arthur M. Johnson made the following remarks at the annual
meeting of the Economic Education Council of Massachusetts,
May 23. Dr. Johnson, who serves
as vice chairman of the Maine
Council on Economic Education,
is director of the Project on Balanced Growth for Maine, at the
University of Maine, Orono.
" It seems to me that we are in
an open-ended situation of transition, comparable to that which
existed at the turn of this century
when we were trying to decide
whether we liked big enterprise
and, if so, how we could retain individual identity and opportunity
in a corporate age . ... Much of
our maneuvering room has been
used up, there is a leadership vacuum, and - above all - a lack of
understanding of the options and
their relative costs and
benefits ... .
"[We should] recognize that
economics is a social science. After
all, how an economic system functions is itself a function of the social goals and values of a society . . . . In the past, our obvious
goa l was growth and our set of
values permitted it to be measured
quantitatively. For several generations we have measured our
national progress in terms of
GNP and per capita income, and
compared our economy with
others in this fashion. There is

nothing wrong with this, of
course, but it does not - and does
not pretend to - measure the
quality of growth ... .In an undeveloped continent, 'more' was a
natural goal and measure. But as
we polluted our streams, denuded
our coun tr yside, jammed our
highways, and made city living
ever more difficult, we began to
recognize that, in economic terms,
there was a point of diminishing
returns to pursuing 'more' ....
"Enthusiasts for Maine's natural beauty are deadly serious when
they say , 'Lock the gates at
Kittery; don't let a nyone else in.'
And th ese recent converts have
some support among natives, who
would rather have the freedom to
go hunting or fishing than a 9-5
job that would increase their incomes by severa l thousand
dollars . ...
" I see a significant role for economic education in examining
dispassionately how the American
enterprise system has actuall y operated. With al l its warts and
blemishes, it has performed magn if icen ti y in the context of the
goals and values acceptable to the
American people. The point is
that I believe it can sta nd , and
will benefit from , critical
examination ....
'' Economic education
can .. . make students aware that
where there are benefits, there are

also costs; that a decision to move
in a given direction carries with it
measurable and unmeasurable
costs for not taking the opposite
course. There are, for example,
costs in consuming more than we
produce; in consuming more energy than we can supply; in
choosing to take a vacation with
money that wou ld otherwise be
used to paint the house, further
our education, or buy new clothes.
"In an affluent society we have
tended to forget these things: we
have been reckless with our natural resources and our use of personal and national credit. In economics, as in other areas of life,
the piper h as to be paid sooner or
later. ...
"Of course, there are many
things that a society wants and
needs that should not be measured
solely in economic terms. But how
they are met - the needs of the
aged , defense, urban redevelopment, education - have an
economic dimension . I suspect
that most students are far more
aware of social problems and
more anxious to cope with them
than they are with the economic
choices they embody. I know politicians - who, after all, are seeking public support - are. Economic education can help the
public understand the real nature
of the choices that they will be
asked to make, implicitly if not
explicitly .... "

Federal Reserve Bank of Boston Vol. 1, No. 3· Sept. 1974
Federal Reserve Bank of St. Louis

The Innova tive
Classr oom
Imagine Yourself Presiden t
There you are - the head of a
mod ern co rporation with a d ecision to make on a n ew product.
Wh a t d o you n eed to con s id er?
Wh a t do you do? Or there you are
- a town council m ember in ew
E n g la nd in th e 1800s wr es tling
w ith a d ec ision about a textil e
mill co ming to town . What will
be th e co n sequ ences of your dec isio n ? Us ing case s tudi es, you
a nd your class can find yourselves
in simila r situa tion s where your
d ec isio n s a re rea l on es and you
have to defend the judgments you
Case studies can be used to fill
in background details about a decision ma king situation and bring
you up to a critical turning point
(or p o ints) in events.
F r om th ese tu r nin g p o ints,
you r class can " ta ke off" o nto discussions of alterna tive decisions and th ei r impli ca tion s. Students
must m ake and defend their own
dec is io ns, and, through interactions with their classma tes, they
w i 11 come to rea lize tha t there is
no "o n e r ig ht a nswer" to these
rea listic cases.
Throug h the u se of case studies, each altern a tive decision will
be seen to h ave its cos ts as well as
its be n ef its, as st ud e n ts tac kl e
problems a nd come up with more
multi p le cho ice a nswers th an they
ever thought poss ibl e. Case studies
and case discussion can stimul a te
stude nt s to think a bout a probl em, its poss ibl e so luti o n s a nd
w h a t the solutions imply for the
fut ure.
To sta rt your class in using cases, P a ul Ted esco h as written a
helpful ha ndbook, T eaching With
Case Studies, recentl y p ublished
by th e Fede ra l R eserve Bank of
B os t o n . • Te d esco c oordin a tes
BH e lp , In c. (Bu s in ess, Hi s to r y
a nd Eco n o mi c Lif e Program ), a
n o n -pr o fit e du ca tion a l o r ga niza tion which enthusiasticall y
backs th e case st ud y m et h o d .
BHelp p u blishes a n ewsletter four
Federal Reserve Bank of St. Louis

tim es a year , c hock full of case
materia ls and resources for teachers to use.

" The Plight of the Golden Eag les," a fictional case concerning
a d ec i s ion o n wh e r e a n ew
football stadium should be built,
w ill b e publi s h ed in thi s fall 's
BH e lp N e w s l e tt e r. (If all thi s
a bout a football stadium sounds
fa miliar to n eighbor-s of the New
E n g la nd P a tri o ts' rece ntl y con structed stadium in Foxboro, MA,
it is meant to!) The case includes
three m aps of sites which the cl ass
ca n co n sid e r a nd w as developed
b y R o be rt C ov iello a t W a lp o le
High School.
A case which Coviello a nd hi s
s tud e nt s d eve l o p ed abo ut th e
M cD o n ald 's Corporatio n allowed
the students to explore the origins
o f th e Mc D o n a ld 's r es t a ura nt
c h a in , its sys temiz a tio n a nd its
ca reful fra nchise decisions which
a re b ased o n exte n s ive resea rch
into th e proposed site for a n ew
McDonald' s. The cl ass researched
th e co mp a n y throu g h m agazine
a nd newspap er a rticles a nd had a
two-hour interv iew w ith th e local
M cD o n a ld 's m a n age r . T h eir resea rc h int o so m e thing real and
immedia te in their community allowed ma n y insights into the considera tio ns a nd decisions required
fo r a large a nd o ngoing business.
(T hi case was publi sh ed in the
W inter, 1974 BHelp Newsletter.)

Already published case ma terial
m ay be used as effectively as cases
w hi ch the class develop s. In tead
o f do in g th e research them elves
and getting involved through fi eld
work, studen ts can read a case a nd
b eco m e in vol ved in liv ely di sc u ss i o n s of case d ec i sion s a nd
va lues.
At Da n a H all School, a p riva te
g irls sch ool in Welles ley, the stud e nt s who e nroll ed in a o ne-sem es ter economics course pursu ed
their case study of the STP Corpora tion with a conferen ce teleph o ne
co n ve rs a ti o n with A nd y G ra na tell i, lon g-tim e STP promoter,
w hose p erson ality a nd a nswers to
qu es tions a dded to the students
enthusiasm for the case.

T he R acer's Edge: Andy Gran atelli an d the S TP Corporation is
a p articularl y well don e case study
of a compa ny which a ny foll ower
of the Indy 500 knows about. (If
yo u 're no t a n Indy 500 foll ower,
the STP Compa ny m a kes o il a nd
gaso lin e ad d itives, and fo r years
has sponsored a car in this famou s
India na p olis race.) T he case ca n
pr o vide a lmo st e ndl ess opp o rtun ities for discussio n on a who le
ra nge of economic concepts.

T h e cla ss t a u g ht b y J o hn
Sc hul e r a lso read cases from Up
Against the Corporate Wa ll by S.
Praka hf Se th i. T h e students became so involved with fo ll owing a
C oca Co la Co mpan y case to its
concl usion tha t they wro te a nd final I y ca ll ed the compan y's m ain
o ffi ce in Atl a nta for up-to- th emin ute informa tion . T h e case in v o Iv ed a fr a n c hi se of th e Coca
Co la Co mpa n y. After the cou rse
one student p ursu ed the fra n c hi sin g m ec h a nism furth er w ith
a n ind e p e nd e nt study of a local
Coca Co la fra nchise.
T h e case st ud y, wi th its wide
r a n ge o f t op i cs, co n ce pts a n d
levels of teaching, stimula tes tud e nt interes t, p a rti c ipa tion a nd
thoug ht.
• For info rma tion a bout this pu blicatio n a nd o th ers in this article,
see "M ulti -Med ia," page 3.






A one-day teacher workshop, discussing techniques for bringing economics into the classroom, will be spon sored by the Federal Reserve Bank of Boston. Secondary school teachers are invited to participate, share
their ideas and learn about :
- The Federal Reserve System - why it was founded and how it affects the economy
-Mr. Banker - a game about banking which allows students to take the roles of community bankers and make crucial loan decisions . (Play the game and learn to teach it.)
- Case studies in the classroom
-Educational materials available free from the Federal Reserve Bank of Boston - publi·
cations, films and games, including a new publication, Introducing Economics

When: Tuesday , November 12, 1974, 9 a.m . to 3 p.m.
Where: Federal Reserve Bank of Boston, 30 Pearl St., Boston (near Post Office Square)
How to apply: Fill out the form below and return to Susan Funderburg, Public Information Center, Federal
Reserve Bank of Boston, 30 Pearl St., Boston 02106. Additional information and a map will
be furnished. Because space is limited , please apply today.
Cost : None

NOVEMBER 12, 1974

Name _ _ _ _ _ _ _ _ _ __ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
A d d r e s s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - zip _ _ _ __
School _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ phone _ _ _ _ _ _ _ __
School A d d r e s s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Grade level and s u b j e c t - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Have you ever taken an economics course?

_ _ _ _ yes

____- no

Have you taken an economic education workshop given by one of the Councils on Economic Education?
_ _ _ _. yes
____ no
Have you introduced economics into your class? If so, how? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis

Nevv England Update
Councils and Centers for Economic Education

What was it like to work 13 hours a d ay at
a loom in a New England mill town in the
1800s? The lives of young ladies like the
one pi ctured above are described in a case
s tudy, " Tomorrow I Start at the Belknap
Mill ," publi s h ed in th e Summ er , 1973
BH e lp Newsletter (Business, History and
Econo mi c L ife Program , Inc.)



A tw e nty-fifth anniv e rsary celebration will be held in honor of
th e lon g se r v ice of th e Greater
Hartford Council on Economic
Education o n O ctober 21 at the
T obacco Vall ey Inn in Windsor.
One of the fea tured sp eakers will
be Dr. Glenn Ferguson, president
of the U niversity of Connecticut.

Parti cipants in the summer economic educa tion workshop sponsor ed by th e Maine Council on
Economic Education will meet
Coun c il m e mb e r s inform a ll y
when the Council m ee ts O ctober
19 at th e U niv ersity of Maine,


Grade level code: Capi tal letters (E -]-H
- C) after each item indicate grade leve ls
for w h ich the materia ls are most appropriate: £-elementary school, }-junior high
school, H-high schoo l, C-co llege .

The BHelp ewsletter, (J-H ), is
publish ed four times a yea r by the
n o n -p ro fit edu cation a l corporation , Busin ess History and Economic Life P rogram , dedica ted to
furth e rin g eco n o mi c edu ca ti o n
th ro u g h th e u se o f case studies.
Th e newsletter conta ins a wea lth
o f resource suggestio ns a nd case
m a teri a l s fo r teac h e r u se. T h e
Winte r, 197 4 iss u e co nt a in ed a
case o n the McDon ald 's Corporatio n, " 13 Bi ll ion Wha t?" Th e fall
iss u e w ill co nta in a case a b o ut
foo tball , "The Pli ght of the G o lden Eag les. " For copies, wr ite: P a ul
H . Tedesco, BHelp Coordina tor,
2 I9 C , Depa rtment of C urri c ulum a nd Instruction , Co ll ege
o f Ed u ca ti o n , No rth eas te rn U.,
B os t o n 0 2 11 5, $ 2/ yea r BH e lp
m embership and newsletter.
Th e Ra cer's Edge: And y Granatelli and the STP Corporation, (J
-H-C) E d wa rd F . Brufk e, 28
pages, a well -clon e economic case
s tud y w hi c h ca r f rea k s (a nd
Federal Reserve Bank of St. Louis

Th e Center for Economic Education a t American International
College in Springfi eld will be
working with teachers and administra tors in several school system s
to w rite economics into the curri c ulum . T h e areas p articipa ting
in the program h ave agreed to two
to th ree yea r commitm ent s and
the involvement of administrators,
as well as teach ers, in the impl em e n ta tion o f eco nomics into
the curriculum K-12, according to
G ordon Morrill, assistant director
o f the Center.

o th ers!) will love a nd which spotlights a host of economic concepts
for discu ssion , 1971. Write: G eneral L earning Press, 250 J am es St. ,
Morristow n, J 07960, 60 cents.

T h e fo ll ow in g two publications
a re ava il able free of cha rge from
th e Publi c Info rm a tion Center,
Fed e ra l R eserve Bank of Bos ton ,
30 P ea rl St. , Boston 02106:
Teaching With Case Studies, (JH ), by Pa ul Tedesco, 67 pages, a
ha ndbook which compreh ensively
d esc ribes how to use and di scuss
ca se s tudi es in th e cl ass r o om ,
Introducing Economics, (E- JH ), brea k s d ow n economic con -

cepts into a sta tement of a basic
und e rsta ndin g, acco mpa nied by
three exampl es and a res tatement
o f th e und ers tanding. U nder3

The New Hampshire Council on
Economic Education sponsored a
panel dis c u ssion on " Economics
o f the Environment" August 2 at
the University of ew Hampshire
in Durh a m. P a nel m emb ers included Henry J. Ellis, supervisor
o f en g in ee ring , Public Service
Compan y of New H ampshire a nd
H e rbe rt Sostek, gen eral manager
o f the Gibbs Oil Company, Saugus, MA.
Readers are invited to use Th e L edger as a
fo rum to share news about their expe rien ces in economic educat ion . Write:
Mary J ane Coy le, Ed itor, Th e L edger,
Pub lic Services, Federal Reserve Ban k of
Bos ton , 30 Pearl Street, Boston 02106 or
call: (617) 426-7100 X474.

standings deal with subject areas
such as the scarcity problem , natural res ources, government, and
m o n ey a nd c redit. The boo k is
based on a draft prepared for
teac h e rs b y th e Economi c Educa ti o n C o unci l of Massachu setts,
Th e Ledger com p il es info rmation from
vari o us sources and is p ublished eight
times during the school year as a public
serv ice by the Federal R eserve Bank of
Bosto n . In cl usion o f news about econom ic educa tion should not necessa rily
be construed as an endorsement o f spec ifi c programs by the Ban k. Ma teria l
co nt ai n ed herein does no t necessa ril y
refl ec t th e vi ews of the Federa l Reserve
Ba nk o f Bos ton o r th e Board of Governo rs. Copies of thi s newsletter and a
ca ta logue o f o th er edu ca tiona l publ icati ons, fil ms a nd p u blished research info rm at i o n may be o btai n ed free o f
c harge by wri ting Public In formation
Center, Federa l Reserve Ba n k o f Bos to n,
30 Pearl Street, Bos to n 02 106 or by ca lling (6 17) 426-7 100 X657 .

Boil Be£ore Drinking
The following fictional situation and questions were designed to suggest discussion possibilities in examining the issue of
pollution and its contro l.
To talk about pollution only in
terms of "clean versus dirty" air
or water is to miss many of the
economic and social choices included in the issue of pollution.
The questions below explore
some of the implications of a new
pollution regulation for a community. The answers to these
questions - and more - are up
to you.

out for expanding the company.
Now what?
Ballard arranged a Board of Directors meeting for the next morning. Now , he said to himself, if I
on ly knew what to say to them ...

" The level of pollutants in
the river has reached a danger
point, with fish and plant life
threatened," the Pollution Authority report said. "Unless
the pollution is abated, Riverton residents will no longer be
able to swim in or fish in the
river," it said.
The new anti-pollution act
passed last month will make
court action and fines against
polluters readily avai lable to
the Pollution Authority.
Frank Ballard, president of
Ballard Metal Company, was
unavailable for comment. ..
You bet I am, Ballard thought.
Pollution control equipment
would cost $2 million and would
mean skipping a dividend for
stockholders and taking out a
loan for the equipment. That was
a loan we were planning to take
Federal Reserve Bank of St. Louis

• Does the Pollution Authority
have a responsibility beyond clean
air and water for the total welfare
of the community? What does that
total welfare include? Is a balance
between business and ecology possible? Can you define the balance
point if there is one? If there is no
balance point, why not?
• Why would the government be
concerned about the polluted river? What difference does it make
to the community? Now? In 10
years? In 50 years?
• Does the fact that the Ballard
Company recycles old metals for
reuse mean that it is helping to
preserve natural resources? Does it
outweigh the pollution the company causes?

The president of the Ballard
Metal Company, recycler of used
metals into reusable materials,
was furious. He gazed at the front
page story and picture of the Indian River pol luted with sewage
from his company. "Local Factory
Told to Clean Up," was the story
headlin e. He began to read:
RIVER TON - T h e main
source of industrial pollution
for the Indian River was identifi ed as the Ballard Metal
Company, the State Pollution
Authority announced today.

ton 's state? To close all polluting
factories? To give rivers and parks
back to towns for recreation?

• Is there a point where the market value of the metals is less than
the cost of recycling them and
cleaning up the pollution caused?
What happens to the company if
this point is reached? Must the
company close? Will it change its
product or processes?
E1wironmema l ProtecLion Agency

• If you were Frank Ballard, what
alternatives cou ld you present to
your Board of Directors? Some of
the directors will want to fight the
an ti-pollution directive as antibusiness; do you agree? If you do
decide to expand, will you have to
change your process or product to
decrease pollution?
• If you were the State Pollution
Officer, would you grant Ballard
Metal Company a time extension?
Since this is one of the first actions after the pollution act was
passed, the precedent it sets is important. How does the importance
of the company to the community's economy weigh against its
destruction of the community's

• Can you take a position simply
for or against clean water and
have the solution to the problem
of this company and its community? If so, explain the solutions
your position implies. If not, why
• Why do you think the anti-pol1u tion law was passed in River4

• What if half of all the heads of
households in Riv erton are employed at the Ballard Company?
Should that change the attitude of
the Pollution Authority toward allowing more time for the company to clean up its operations?
What if just a few people from
Ri verton were employed at the
plant, but most employees came
from out-of-state? What would be
the responsibi lity of the State
• Is the State bent on ruining the
economy of Riverton? If you were
employed at the Ballard Company, would you rather fish and
swim in the river or would you
rather have possib ly higher pay
and job security? What are the
costs to you personally of a polluted river - more sickness in
your family, a longer distance to
travel for recreation?
• Is pollution ju st the price of
" progress"?
• You are the editor of the Riverton Times. The pollution story is
big news and deserves an ed itorial.
What do you write?