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Stat 411/511 THE RANDOMIZATION TEST. Charlotte Wickham. stat511.cwick.co.nz. Oct
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1 Stat 411/511 THE RANDOMIZATION TEST Oct Charlotte Wickham stat511.cwick.co.nz
2 Today Review randomization model Conduct randomization test What about CIs? Using a t-distribution as an approximation to the randomization distribution.
3 Read: in Sleuth Display 1.1 p. 2 Creativity scores in two motivation groups, and their summary statistics Motivation Group Assigned randomly by researcher Intrinsic Extrinsic score 4.1 points 19.3 higher 24.3than the 16.8 extrinsic Does intrinsic motivation improve creativity? The intrinsic group has an average creativity Sample Size: Average: Sample Standard Deviation: group = 4.1
4 Display 1.2 p. 3 Questionnaires given creative writers, to rank intrinsic and extrinsic reasons for writing INSTRUCTIONS: Please rank the following list of reasons for writing, in order of personal importance to you (1 = highest, 7 = lowest). You get a lot of pleasure out of reading something good that you have written. You enjoy the opportunity for self-expression. You achieve new insights through your writing. You derive satisfaction from expressing yourself clearly and eloquently. You feel relaxed when writing. You like to play with words. You enjoy becoming involved with ideas, characters, events, and images in your writing. List of extrinsic reasons for writing List of intrinsic reasons for writing INSTRUCTIONS: Please rank the following list of reasons for writing, in order of personal importance to you (1 = highest, 7 = lowest). You realize that, with the introduction of dozens of magazines every year, the market for free-lance writing is constantly expanding. You want your writing teachers to be favorably impressed with your writing talent. You have heard of cases where one bestselling novel or collection of poems has made the author financially secure. You enjoy public recognition of your work. You know that many of the best jobs available require good writing skills. You know that writing ability is one of the major criteria for acceptance into graduate school. Your teachers and parents have encouraged you to go into writing.
5 The randomized experiment model Key idea: there is no population, and no sampling! get treatment 1 Some experimental units assigned at random observed responses for units assigned to treatment 1 Doesn t matter where they came from. get treatment 2 observed responses for units assigned to treatment 2 Chance only enters through the random assignment of units to treatments
6 Remember: Statistical testing 1. Set up the null hypothesis (and alternative hypothesis) 2. Calculate the test statistic 3 Evaluate the evidence against the null hypothesis by comparing the test statistic to test statistics expected under the null hypothesis, the null distribution. To do a test all we really need to know is the null distribution. I.e. the randomization distribution if the null was true. The evidence is summarized by a p-value, the probability we would see such an extreme test-statistic if the null hypothesis is true. 4. If the p is low, the null must go! Reject or fail to reject the null hypothesis
7 Randomization Distribution The randomization distribution is the histogram of all values for the statistic from all possible ways the experimental units could have been randomly assigned to groups. In the sampling model, the reason there is variability in a sample statistic is because we induced variability by taking a random sample. We describe the variability using the sampling distribution of the statistic. In the randomized experiment model, the only reason we see variability in group statistics is because we induced variability by randomly assigning people to groups. We describe the variability using the randomization distribution of the statistic. In randomized experiments it s the relationship between the randomization distribution and the effect of the treatment that allow us to make inferences.
8 subject 1 subject 2...
9 500,000 test-statistics, from 500,000 random regroupings An approximation to the distribution we would expect from chance alone null distribution 1302/ are as small or smaller than / are as large or larger than 4.14 The value from the data two-sided p-value = ( )/ =
10 A statistical summary There is strong evidence that the effect of the intrinsic questionnaire is not the same as the extrinsic questionnaire in this set of subjects (randomization test, p-value = 0.005). no population inference
11 Randomization test Procedure We pick a test-statistic and calculate the observed value. To get a p-value we compare our observed teststatistic to the randomization distribution of teststatistics obtained by assuming the null is true. The p-value will be the proportion of teststatistics in the randomization distribution that are as or more extreme than the observed teststatistic. Explain the steps in a randomization test for testing for a treatment effect in a controlled experiment.
12 The Randomization test No sampling from a population, so no assumptions on a population. Assumed random allocations to groups. We used the difference in sample averages as our test statistic, but we could have used something else. Null hypothesis: there is no difference between treatments (for any subject) What s the alternative?
13 Alternative hypothesis: there is some difference between treatments for at least one subject. Some ways the alternative could be true: one treatment induces a fixed additive change in response, δ, for all subjects (a.k.a the additive treatment model) one treatment induces a larger mean response across subjects one treatment induces a larger variance in response across subjects one treatment induces more skewness in response across subjects We might tailor our test statistic to the type of deviation from the null we expect to see, but different test statistics don t change the alternative hypothesis
14 Confidence Intervals There are no parameters of interest so, there are no confidence intervals of interest. We could assume a particular type of alternative that is parameterized. Then we could make confidence intervals on that parameter. (e.g. additive treatment model). this is what the Sleuth does Section 2.4.1
15 The additive treatment model The additive treatment model, says: A subject s response on treatment 2 is their response on treatment 1 plus some fixed number, δ, that is the same for everyone. In math, consider subject i Y i1 = Observed value of subject i under treatment 1 Y i2 = Observed value of subject i under treatment 2 Y i2 = Y i1 + δ for all i unknown parameter If we have random allocation to groups and we are willing to assume the additive treatment model, then our hypotheses in the randomization test become: Null hypothesis: the treatment effect is zero, δ = 0 Alternative hypothesis: the treatment effect is not zero, δ 0
16 Creativity case study Let s assume the additive treatment model. Creativity score given Intrinsic Questionnaire = Creativity score given Extrinsic Questionnaire + δ Let s also use the t-statistic, instead of the difference in sample averages, as our test statistic. Y 1 Y 2 SE Y 1 Y 2
17 subject 1 subject 2... Actual grouping Extrinsic Intrinsic sample avg sample sd sample n two sample t-stat = 2.92 Another grouping 1 2 sample avg sample sd sample n two sample t-stat = 1.37
18 A histogram of 500,000 t-statistics, from random regroupings of the creativity study. a t-distribution curve with d.f. 45 value of the t-statistic The t-distribution is a very good approximation to the randomization distribution of the t-statistic
19 In a randomized experiment, The result from a two sample t-test is approximately the same as a randomization test, when: you assume the additive treatment model the observed responses aren t too non-normal This is pretty amazing! The two sample t-test arose from a completely different model, random sampling from populations.
20 This means we have increased the number of situations we can do a t-test. We can do a two sample t-test when we have samples from Normal populations, and when we have a randomized experiment of two treatments, with data that isn t too non-normal. more on too non-normal later... The scope of inference (population or causal) is still completely restricted by the study design.
21 > t.test(score ~ Treatment, data = case0101, var.equal = TRUE) Two Sample t-test data: Score by Treatment t = , df = 45, p-value = alternative hypothesis: true difference in means is not equal to 0 95 percent confidence interval: sample estimates: mean in group Extrinsic mean in group Intrinsic
22 Creativity case study A statistical summary based on the t-test There is strong evidence that the effect of the intrinsic questionnaire is not the same as the extrinsic questionnaire in this set of subjects (two sample t-test, p-value = 0.005). We estimate the effect of the intrinsic questionnaire is to add 4.14 points to the creativity score compared to the extrinsic questionnaire. With 95% confidence, the effect of the intrinsic questionnaire is to add between 1.29 and 7.00 points to the creativity score compared to the extrinsic questionnaire. note the language of an additive treatment model the effect is to add
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UNAM increased international prestige in 2017
The National Autonomous University of Mexico (UNAM) announced that in 2017 the presence and international prestige of the educational institution highly increased as 12 agreements with foreign universities and international organizations were signed and UNAM was awarded several prizes.
Particularly, the collaborations with Pierre and Marie Curie University (France), University of Alberta (Canada), Ben-Gurion University of the Negev (Israel), and University of Arizona (United States) stood out.
It should be noted that a series of universities from France, the United States, Canada, the United Kingdom, Spain, China, and the Netherlands opened representation offices in Ciudad Universitaria setting the path for international collaboration.
In 2017, 1,532 professors and 3,632 students carried out academic and research residences at institutions abroad, while UNAM welcomed 1,892 professors and 6,935 students from abroad.
UNAM awarded María Francisca Atlántida Coll Oliva, María de las Mercedes Guadalupe de la Garza y Camino, Luis Esteva Maraboto, Víctor García de la Concha, Enrique González Pedrero, Jaime Labastida Ochoa, Eduardo Matos Moctezuma, Leonardo Padura Fuentes, Ranulfo Romo Trujillo, Silvia Torres Castilleja, and Josefina Zoraida Vázquez Vera the title of Doctor Honoris Causa.
Overall, UNAM researchers participated in several projects and scientific initiatives of great global relevance such as the Gulf of Mexico Research Initiative or the International Ocean Discovery Program in 2017.

subset: commoncrawl


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|THE NEGATIVE CHARACTERISATION OF PHYSICALISM, Mark Bradley – University of Leeds.
|One recent attempt to capture the content of physicalism involves characterising it negatively in terms of the non-mental. This thesis is criticised on the grounds that it fails to provide a sufficient condition for an adequate characterisation of physicalism, since, from a global physicalist perspective, it has both nothing to say about other so-called non-physical entities and fails to exclude them from the fundamental entities that such an account must posit. This latter problem is also faced by a more local form of physicalism – one that restricts itself to just the mental domain. Some possible responses from the physicalist are briefly discussed and dismissed, and it is suggested that the physicalist must have some implicit idea of what she means by 'the physical', an idea which must amount to more than simply 'the non-mental'.
|NATURALISM AND TRIVIALITY, Attila Tanyi – Central European University.
|The paper examines Derek Parfit's claim that naturalism trivializes the agent's practical argument and therefore abolishes the normativity of its conclusion. In the first section, I present Parfit's charge in detail. After this I discuss three possible responses to the objection. I show that the first two responses either fail or are inconclusive. Trying to avoid Parfit's charge by endorsing irreductionist naturalism is not a solution because this form of naturalism is metaphysically untenable. Non-descriptive naturalism, on the other hand, does not answer the pressing concern behind Parfit's charge. I conclude that we had better turn to the third response: Peter Railton's vindicatory reductionism. However, I also argue that naturalism can only avoid triviality in this way if it is able to respond to further challenges concerning the vindication of the reduction it proposes. Hence, though not a knockdown argument as it is intended to be, Parfit's charge can still pose a threat to naturalist accounts of normativity.
|FREQUENCY-DRIVEN PROBABILITIES IN QUANTITATIVE CAUSAL ANALYSIS, Federica Russo – University of Kent.
|This paper addresses the problem of the interpretation of probability in quantitative causal analysis. I argue that probability has to be interpreted according to a Bayesian framework in which degrees of belief are frequency-driven. This interpretation can account for the peculiar use and meaning of probability in generic and single-case causal inferences involved in this domain.
|NATURALISM AND THE BUCK-PASSING ACCOUNT OF VALUE, Francesco Orsi – Scuola Normale Superiore, Pisa.
|It has been thought that the prospects for non-naturalism about normativity may be significantly advanced if non-naturalists take the relation of being a reason as the basic normative entity, and so if, inter alia, they endorse a buck-passing account of value. This is thought to yield theoretical benefits regarding (i) the open question argument, (ii) the defence against the charge of queerness, and (iii) demands of parsimony. In the paper I contest these claims. Non-naturalists need not focus on reasons, and so need not, as non-naturalists, endorse a buck-passing account of value. They can choose to hold evaluative notions to be the basic ones, or to have a (reasoned) plurality of basic normative concepts and properties. The debate with the naturalist in those three respects is not going to be significantly influenced by such preliminary conceptual decisions.
|Gerald K. Harrison – The Concept of a Plural Society.
|Georgette Taylor – Cabinets for the Curious: Looking Back at Early English Museums.
|Matthew Bennett – What Philosophy Is.
|Matthew Conduct – Action in Perception.


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People's Choice Award 2018
The People's Choice is an online competition where you can cast a vote for your favourite finalist. It's a great way to get involved, show your support for the finalists and go into the running to win one of ten Gift Packs, courtesy of Earth Choice.
Vote for your favourite finalist in one or more of the ten award categories for your chance to win. Winners will be drawn from those who voted for the People's Choice most popular finalist in each category. You can only submit one vote per category and need to agree to the terms and conditions when you cast your vote.
The People's Choice does not form part of the awards official judging, nor does it influence the actual winners of the Premier's Sustainability Awards, which are announced at the awards ceremony on Thursday 11 October 2018.
Voting is now open and closes 5pm on Friday 21 September. Winners will be announced on Wednesday 3 October 2018.
Simply select a category below to start voting.


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These are just some of the many comments received about the 2010 Festival through Facebook, customer surveys or in person. Keep adding your photos and comments to the Festival's Flickr and Facebook sites!
See, you lot sneered at me when I moved to Milton Keynes but here I am with The Magical Menagerie . . .
As an artist, I am taking part in many festivals but Milton Keynes International Festival was one of the best I have ever been to.
It's been fantastic! 10 historic days! It all went too quick!
I discovered Asleep At The Wheel today; profoundly moving as an experience, has really inspired me to get more involved in IF. Thanks to all involved in setting this up and making it happen.
Walked into Janek Schaefer's 'Asleep At The Wheel' with an open mind and walked out with a whole new perspective on life.
The Orkestra were fantastic . . . haven't danced so much on a Tuesday night for a looong time. Glorious venue as well, that Spiegeltent. Nice one, IF-MK folks!
Show of Hands in the Spiegel Tent was brilliant last night. I hope the IF happens every year . . . Ade Edmonson and Bellowhead to come this week, and then The Prodigy. 4 gigs in a week. I'm loving MK!!!
Amazing! Visited this weekend from Bognor Regis and it was so worth the trip! Mirazozo has been my favorite so far - I want to move in! Magical Menagerie had my husband mesmerized for ages - Asleep at the Wheel was simply thought provoking and something really different.
What an amazing opening night for inStallation! 1st class - cannot be praised highly enough. If you don't have tickets already - shame on you!!! Get some today!
Congratulations on delivering a fantastic Festival in the worst recession since the 1930s!
It was quite simply the most stunningly beautiful, aesthetically pleasing and well rounded thing I have ever seen. The visuals, the great music, the great singing and the crowd just made it one thing I doubt I will ever forget.
The range of projects and events was simply staggering and I've heard numerous stories about how well run it was with original events attracting a broad range of people to try something they haven't before.
Congratulations on a wonderful first IF Festival. The quality of programme and production throughout the festival was noticeable – none of that usual shabby festival stuff - plus brilliant and cheerful volunteers!


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Family holds war memory dear
MEDALS from Queensland's last surviving World War I veteran are cherished by the Smout family.
William and Samuel know how significant today is as they hold the medals of their greatgreat-grandfather, Ted Smout, while sitting with their greatgrandfather, 92-year-old Westy Smout (pictured) – a WWII bomb navigator in Britain.
Their mum, Kate Persijn, said it's "hugely" important for her young sons to understand then th what they go through now," n she said. "With Remembrance Day, D I feel it's really important, a especially for the kids of today, to to understand why it is that we stop and remember b them for just a minute. It's It really emotional." Mrs Persijn said she felt proud p to be born with the the h sacrifices ifi es their loved ones Smout Smo surname, as both her made to keep Australia the grandfathers served in the war, safe and free nation it is today. and her "pop Ted" had been "It's so important that they awarded a Legion of Honour remember what veterans had medal, now displayed at the to go through, for a start, and War Memorial in Canberra.


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Gay quote christian values
Christians expect their God is all-good and all-loving. Atheists sideboard that, according to Christian's own Bible, God is instead "the most unpleasant property in all fiction: desirous and braggart of it; a petty, unjust, uncharitable control-freak; a vindictive, bloodthirsty ethnic cleanser; a misogynistic, homophobic, racist, infanticidal, genocidal, filicidal, pestilential, megalomaniacal, sadomasochistic, capriciously malevolent bully" (as Dawkins puts it). For example: Craig says these atrocious commands of God are a peculiar event related to the seduction of Canaan. Even the few examples I gave above are not concentrated on the conquering of Canaan, and thither are hundreds more atrocities performed by God or at his command, strewn God only commanded genocide "a few times" during the success of Canaan, would we and then be even in calling him all-good? At the really least, so much a god momentarily nonchurchgoing into an anti-social sufferer fit.
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Do Christians REALLY Believe?
They anticipate their son, whom they love dearly, is going to be tortured forever. They're troubled that I cull their way of life as some deluded was a Christian. And let's say this information came from a actual tried and true source, so that you this was departure to happen. Would you just mention this to your friends and family unit in passing, and send away them the occasional tract with information on the threat of the Nazis? Maybe you would drive out there and try to convert them of the threat until you were chromatic in the face. I go through if would do some pretty drastic property to salve my friends and family. Sure, they're distressed that their son has rejected all but of the values and "truths" they tried to instill in me. The Nazis were going take everybody off to concentration camps in chains, and possibly devastation them. This is not a business for attacking religion beliefs or promoting irreligious views. Maybe you would waste matter to leave until they came away with you. But this is not what Christians do for their friends and kindred who they really believe are on the boundary of tumbling into eternal torture, even though they this stuff, but they don't act same it.
T.D. Jakes Comes Out for 'Gay Rights' and 'LGBT Churches,' Says Position is 'Evolving' | Christian News Network
Every house of prayer has a different opinion on the issue and every gay person is different," he replied. outbuilding says that homosexuals should go with congregations that substantiate their fashion and that politics do not need to reverberate sacred writing ethics, adding that his bodily property on homosexuality is both "evolved and evolving." During an interview with the Huffington Post on Monday, privy was asked by a viewer if he believes that homosexuals and the black place of worship can co-exist. I consider it is going to be various from christian church to church. "And I reckon that to utter that the church—the negroid church, the segregated church or any sympathetic of church you wanna cry it—are all the same, is completely not true." "LGBT's of different types and sorts have to find a noesis of hero-worship that reflects what your views are and what you believe look-alike anyone else," he outlined.
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Spring is right around the corner. Time to start getting into shape. 4 Years of college, sitting in front of a computer have physically worn me out. I'm determined to get back on track. Running, Biking & Swimming. I have missed it. While I'm at It, why not take some cool shots as well.
Up at Dusk
After The Sunset
After so many attempts, with amazing results every single time; I finally caught a clear shot. Impossible to look at and impossible to capture during the day without getting an over exposed photograph. The Sun, our primal source of energy, one amongst many stars in the universe. Many secrets to life lie in it; without the sun we wouldn't be alive. Now that I know it, the question is; how do I manage all that energy?
Take a Minute and Look Up!
Is there almost every night, except for those cloudy and rainy nights. Do we ever take a moment to appreciate its beauty? Funny fact, there has been a star west of the moon for the past few days. Is it always there? maybe, is also the biggest and brightest star of them all. Doing some research I just found out Venus can be seeing at dusk and dawn, therefore I don't think that bright star west of the moon is Venus. Does anybody know what star is it?
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text: I have used Tiny firewall everysince it was really tiny lol. 2.0 At the present I'm still using TPF 2005 Pro on my XP-Pro Computer and I love it. I havn't really been keeping up with firewalls lately and was wondering if I should maybe start lookin for another more up to date firewall? Also I may be building a new second computer so I would be needing a firewal for that one. What firewalls compare well to tiny 2005 pro? Do all the newer firewalls offer loopback control? I remember some of them didnt used to give users control of that? Are there any out there that offer the power and adaptability that Tiny has? What should I be looking at? Michael


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NEW YORK (CBS.MW) - ATI Technologies atyt filed to sell up to $500 million worth of securities in Canada and the U.S. The securities could include common and preferred stock, debt, and/or stock warrants. Shares of the 3D graphics and digital media company closed Thursday down 58 cents at $16.36.
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Changing market trends in the global industry study
Market segmentation details
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Further in the report:
Different factors such as the technological developments, threats, economic factors, and opportunities have in detail covered in the report. The performance of Two Shot Injection Molding market throughout 2017 to 2022 has forecasted in this report. Besides, upstream raw materials, equipment, downstream client survey, marketing channels, industry development trend and proposals are also covered in this report.
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3 Dots Malayalam Movie Info
Three Dots Malayalam Movie is directed by Sugeeth. produced by B. Satish and Sugeeth under the banner of Ordinary Films. This Is The Second Movie Of Sugeeth after Ordinary.
3 Dots Movie Complete Details
|Release Year
|Directed By
|Produced By
|B. Satish & Sugeeth / Ordinary Films
|Rajesh Raghavan
|Film Genre
|Comedy / Musical
|Kunchacko Boban , Biju Menon, Prathap K. Pothan, Narain , Krishna Kumar , Janani Iyer, Anjana Menon , Vanitha Krishnachandran
|Music By
Vishnu , Pappan and Louis are three ex-convicts who live together at Pappan's abode, trying to pick up from where they had let their lives off before being jailed. After many unsuccessful efforts to find employment, they appeal to Dr. Isaac , who was a counsellor in the prison.


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Added by 1 of our members
A novel by Graham Masterton
Two young girls are haunted by the spirit of their dead sister.
Little Peggy Buchanan is dead, drowned in the family swimming pool on an icy winter day. When her sisters recreate her image in the snow, they have no idea of the eerie forces they are unleashing.
Peggy had always imagined herself as Gerda in The Snow Queen. Now she has been resurrected in the form of Hel, the legendary being supposedly responsible for death by freezing. Anyone who threatens or even gets close to the sisters risks a - literally - chilling death...
'One of the most original and frightening storytellers of our time' PETER JAMES.
'A true master of horror' JAMES HERBERT.
Similar books by other authors
The Heirloom
Thomas Luke
Shadows Over Main Street
Doug Murano and D Alexander Ward
Used availability for Graham Masterton's Spirit
Hardback Editions
May 1995 : UK Hardback
Paperback Editions
May 2017 : UK Paperback
November 2001 : USA Paperback
October 1995 : UK Paperback
Audio Editions
April 2011 : USA Audio CD
Kindle Editions
May 2017 : USA, Australia, Canada, UK Kindle edition


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Let the people decide what they want, not the Government
As long as humans have lived in an organized civilization, we have attempted to make lives the best that they could possibly be for everyone involved that is willing to do the same to one another. The thing is, we as a species have become much too advanced to partake in communal behavior any longer. In fact, this has been the case for several centuries. At a point, population has gotten above what it had needed to be, in order for our species to survive. We came to this, because of our very nature, and what makes us human. This where we began to fail. Human nature has always been about self interest, no matter what form that comes in. We do things to make our lives as good as they can be, whether that is stealing from others to get what you want, or being nice to others in order to get what you want. The way many nations have set up their system, is a way that allows a select few; a small group of people to rule over the vast majority of the population. This elite group in these nations don't have to be nice to get what they want. They have acquired "political" power, which allows them to do whatever they want to the rest of the population, unless a very specific, and secure system is put in place. In this essay, we will talk about government, and how it can become detrimental to the general population, even when governments start out with the best of intentions. It will be about how intervention can easily turn into devastation. But it will not all be bad. There will also be a conversation about the solution to the problem, and how we can avoid the things government has done to humans in the past, and make sure they never happen again in the future.
Free Market Economy, and how it operates: Let us first talk about what the financial world would look like if government played a minimal role in the way markets operated (The reason I say minimal, and not none, is because there does need to be a bit of regulation, and laws in place to make sure the market continues to run smoothly. An example would be making sure certain products are safe for consumption, and using proper labeling for products). What would happen is market equilibrium. This is when the suppliers of a product are making the exact quantity of product demanded by the consumers, and the price of the product is dictated by how much the consumers demand said product.
Producers would never make more of something than is demanded, because they would lose money. They would either have a bunch of product left over that didn't sell, or they would have to drop their price on the product low enough that people will buy them. On the other hand, consumers would never buy something that they couldn't afford, or buy a product that didn't work the way it should because they would also lose money. This relationship between consumers and producers is very beneficial. Consumers are always going to demand the best thing, and producers will compete with each other to put out a product that will sell.
This, over time, makes more and more advanced products more and more affordable to everyone. Think about the evolution of the car. It started out as a machine built by hand by one person. They started out as very prestigious machines, only available to the rich. But over time, producers saw a way to make cars on a large scale, for less and less money. This made the car available to almost everyone. On top of that, the factories where cars are made gave jobs to millions of people over the world, who helped in making this product available to everyone. Now we even have cars that can drive themselves. This revolution of transportation all started from one idea, and the competition amongst people with great ideas, and the determination to make them work.
Now imagine if this system were disrupted. There were restrictions put on different parts of the system. Things would be fixed, and the system would not function properly. Who would disrupt the system you ask? Well, the answer is the political power. The people involved in the governmental establishments. Why would they do this? Because (this is what they say), they want to help everyone. To improve the lives of the less fortunate. Although this may sound like a great thing, and it is a great thing to help others out, when governments interfere with the free market, it becomes a really bad thing pretty fast. Let's talk about a few things government does that leads to bad things.
Government Intervention in Financial Operations: The first topic will be about price ceilings and price floors. The government imposes something on a product, saying that it can't go above or below a certain dollar amount. The problem is, this dollar amount could be above or below market value. When a product is above market value, there are very few consumers that are willing to buy that product at that price (this situation could also be said that there is a low consumer surplus). At the same time, these producers are suffering, if they are producing that product. No one is buying it, and the firm suffers. The sum of these two things happening is what is called market inefficiency, which leads to slow, zero, or even negative growth for the economy as a whole. That is, if enough products/services have them. The same thing happens when a product is below market value, because there are so many people willing to buy it (high consumer surplus), but the producers cannot afford to make it, because they are not turning out a large enough profit for it to be worth it.
Market inefficiency is the reason economies do poorly. If producers don't get a chance to compete, or there are certain restrictions that hinder their ability to grow, there is no hope. But this is where the government steps in. After putting laws in place to make the market perform poorly, they attempt to get more power to improve the situation that they created, and most of the time, it has ended up being very negative for the population all together.
Governments claim to collect taxes so they can improve the wellbeing of the population. The thing is there is a cycle when it comes to collecting them. Market inefficiency is brought on by government intervention, so the government decides to step in even more than before, resulting in more market inefficiency, and more government intervention, and so on and so forth. Allowing taxes to be imposed on businesses is slowing them down, thus, slowing down the economy. The worst thing is, the government imposes these taxes on people to help out the ones at the bottom (so they say), but it actually ends up fixing the system. Putting something in place to keep the people where they are.
Let's think about the concept of indirect tax, and how it affects large businesses and small businesses differently. With an indirect tax, the government requires that a certain dollar amount be charged per unit of product that may be sold at a store. Large businesses typically sell a wide variety of items, and people are already more inclined to go to their store because they know about their company. They also have much more capital than a smaller business. A large store can afford to do what's called "eating" some of the tax, meaning they pay for some of the tax, and only make the customer pay for some of it. But a small business cannot do this. They cannot afford to eat any of the tax for a wide variety of reasons. For one they don't carry a very wide variety of products, because typically small stores cannot afford the square footage to store and display them. They are small stores, and can only carry a select number of things. Another reason, is they don't have a well know name like bigger businesses do. This means that there are not as many people going to their store, therefore there is not as much revenue being made by their store, versus the franchise stores. The final reason, is they don't usually have multiple locations. They rely on one store doing well, while the corporations can charge different amounts for their products, because they can count of one store doing well, even when some other stores are not.
But if there was not a tax on product, there would be real competition between the small business and the large business. People would go out of their way to go to the small store if they knew it was charging less for the same product that was being sold at the larger store. Like I said earlier, all this competition results in every product being cheaper over time, as well as a higher quality product, because businesses offer what people want to buy.
The Humanitarian Side of Government Intervention: Now that we have covered some basic financial consequences that come with the role governments play in our everyday lives, it's time to talk about the human consequences.
Plain and simple, government intervention, if not kept under control, will evolve into horrible machines of misery for the entire group of people that particular government has jurisdiction over. Don't believe it? Read a history textbook. Every great mass human tragedy had direct, or atleast ties to government intervention. Every genocide, mass murder, and war crime was done because a government took over what the population was allowed to do.
The Soviet Union started off with an intention to give everyone the same amount of wealth, and same quality of life. In order for this to be possible, no one owned any private property, meaning everything was owned by the USSR. It came to be, because of a revolution that ended essentially a feudal system in this part of the world. The transition from this system to the USSR caused a famine This famine killed 5 million people in the region.
From there, a man named Joseph Stalin came to power in the USSR. He attempted to industrialize the country, and tried to make the union the world super power. This forced development resulted in the first man made famine in history. If you did not follow his directions, you would either be killed, or forced to work in labor camps called gulags. It is estimated that Joseph Stalin had a total of 40 million people killed. 20 million in World War II alone. Let's now look at the work of another Socialist party, turned mass murder.
The Nazi Party, also known as the National Socialist German Workers Party, was broken into a series of different levels of power in order for its leader, Adolf Hitler, to remain at the top. Hitler divided the country into 36 districts, imposing a very successful bureaucracy. He began his rule in 1932, wanting a Nation State, made up of only Aryan peoples (blonde hair, and blue eyes/Northern European ancestry).He attempted to go through with this by doing a number of different things to the country's people.
Perhaps his most dark achievement was the creation of concentration camps. He rounded up everyone that defied his idea of a great nation, and had them killed in these camps. These groups of people were made up of homosexuals, the mentally ill and physically handicapped, as well as Jewish individuals. Hitler blamed the financial hardship the country was facing on the Jewish people. By the end of World War II, Hitler was responsible for 7 to 9 million people becoming refugees, as well as the murder of about 10 million. Fortunately he was defeated, and his plans of exterminating the Jewish population failed.
The reason I told you about these two governments is so you could get an idea of what could happen if governments get too much power to themselves. This is the alternative to Capitalism. Of course not every government will result in mass murder, but it is true that they always have the potential to do so.
Just think of today's oppressive governments. Maybe just focus on one in particular for the sake of this essay's length.
Bashar al-Assad's Syria has been ruled by al-Assad for 16 years now. He began his rule by promising his people a free and democratic state, giving everyone a chance to succeed. But, this has not been the case. Over the years, this government has been responsible for state controlled media, censoring things that may paint a bad picture of its rule.
Caesar (a cover up name) has reported that there are thousands of people dead, holding the Syrian government responsible. Al Asad has had thousands of people tortured, starved, beaten, and shot to death. Al Assad has also killed thousands of innocent civilians, claiming he is fighting off terrorist groups.
If this has not been enough information, here is a link for all the dictators of the 20th century. From there you can research on all of them, and all of their crimes against their people…:http://www.cbv.ns.ca/dictator/default.html. You will find that all of them used their governments to carry out their horrible agendas.
As you can see, the free market economy is really the best choice. It allows people to compete for the chance to be successful. It also creates a higher quality of life over generations. From there, we looked at the alternative to Capitalism. We saw that government intervention often results in tragedy. This includes mass murder, genocide, displaced people, famine, and many other things. It also brings the development of new technologies to a halt, because production is controlled by the state, and not what the people demand. So in the end of all this, I will leave you with a question: Would you rather have the free market pick what is best for its people, or put a few people in charge of a country, and hope for the best?
Works Cited
CNN. Cable News Network. Web. 06 Nov. 2016.
"Bashar Al-Assad's Crimes against Humanity, Caught on Camera." The Economist. The Economist Newspaper, 16 Dec. 2015. Web. 06 Nov. 2016.
By the End of 1920, the Nazi Party Had about. "Holocaust Timeline: The Rise of the Nazi Party." Holocaust Timeline: The Rise of the Nazi Party. Web. 06 Nov. 2016.
Ghosh, Palash. "How Many People Did Joseph Stalin Kill?" International Business Times. 18 Mar. 2013. Web. 06 Nov. 2016.
History.com Staff. "Joseph Stalin." History.com. A&E Television Networks, 2009. Web. 06 Nov. 2016.
Rand, Ayn. Capitalism, the Unknown Ideal. New York: New American Library, 1966. Print.


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Ships To
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