Question

In The Wonderful Wizard of Oz and his other books about the Land of \(\mathrm{Oz}, \mathrm{L}\). Frank Baum observed that if people's wants were limited enough, most goods would not be scarce. According to Baum, this was the case in Oz: There were no poor people in the Land of \(\mathrm{Oz}\), because there was no such thing as money.... Each person was given freely by his neighbors whatever he required for his use, which is as much as anyone may reasonably desire. Some tilled the lands and raised great crops of grain, which was divided equally among the whole population, so that all had enough. There were many tailors and dressmakers and shoemakers and the like, who made things that any who desired them might wear. Likewise there were jewelers who made ornaments for the person, which pleased and beautified the people, and these ornaments also were free to those who asked for them. Each man and woman, no matter what he or she produced for the good of the community, was supplied by the neighbors with food and clothing and a house and furniture and ornaments and games. If by chance the supply ever ran short, more was taken from the great storehouses of the Ruler, which were afterward filled up again when there was more of any article than people needed.... You will know, by what I have told you here, that the Land of Oz was a remarkable country. I do not suppose such an arrangement would be practical with us. Briefly explain whether you agree with Baum that the economic system in Oz wouldn't work in the contemporary United States.

Short answer

While Baum's economic system seems idyllic, it appears impractical for the contemporary United States. Differences in population scale, scarcity of resources, human nature of ambition and competition, and substantial government's role in the economy are factors that challenge its implementation.

Step-by-step solution

Understand Baum’s economic system

Reading carefully through the passage, one can understand how Baum's economic system works. In the Land of Oz, people’s wants are limited, goods are not scarce, everyone is given freely by their neighbours what they require for their use, and everything is divided equally among the population.

Understand the contemporary United States economic system

Secondly, one needs to have a basic understanding of how the present economic system works in the United States. The U.S operates on a mixed-market economy, where most decisions are made by the market (suppliers and consumers' demand), but the government also plays a significant role.

Comparison

Finally, it's time for comparison. Is the unlimited supply of all resources, equal distribution, and free availability of goods, observed in Baum's Land of Oz, practical in the United States? One can argue by considering factors like population, resources availability, government policies, citizens' lifestyle, and consumption habits.

Key concepts

Scarcity

Imagine a world where you could have everything you wanted without ever worrying about running out. That’s the enchanting idea in the Land of Oz. In reality, the concept of scarcity plays a critical role in economic systems. Scarcity refers to the fundamental economic problem of having seemingly unlimited wants but limited resources.
Resources such as time, money, and raw materials are finite. Therefore, choices must be made about how to use these resources efficiently.

• Scarcity forces individuals and societies to make decisions about what to produce, how to produce, and for whom.
• Resources are allocated based on their availability and necessity.

In practical terms, scarcity means that people cannot have everything they want, which leads to the need for prioritization and trade-offs. Unlike the fantasy world of Oz, where scarcity doesn’t exist, real-world economies must tackle this issue daily to ensure that needs and desires are met as effectively as possible.

Mixed-Market Economy

A mixed-market economy is like a balanced recipe, where both free-market principles and government intervention are blended to achieve economic goals.
In a mixed-market economy like the United States, several key components play together to shape how resources are allocated. The government intervenes to regulate or support certain industries, provide public goods, or protect the environment, while still allowing markets to function freely.

• The balance of power between market forces and government can vary significantly from country to country.
• Market-driven factors include supply and demand dynamics, competition, and consumer choice.

This combination aims to provide the benefits of a free market with oversight to avoid economic disparities and ensure that public interest is maintained. Mixed-market economies strive to balance efficiency with equal opportunity and fairness—offering a blueprint far different from the idea in Oz, where community needs dictate the distribution of goods without interference.

Resource Distribution

Resource distribution is the method and approach used to allocate resources among individuals and groups within an economy. In the fictional realm of Oz, goods were freely shared among everyone, ensuring that all had what they needed at all times. However, in today's world, resource distribution is much more complex.
In modern economies, various factors determine who gets what, when, and how much, including:

• Market competition, where resources are distributed based on consumer willingness to pay.
• Government policies, which may include redistribution via taxes and public goods provision.
• Social and cultural influences that can affect who has access to certain resources.

The ultimate goal of resource distribution is ensuring that the needs of the population are met while also promoting economic growth and stability. As seen in real-world settings, this often involves balancing efficiency with equity—a challenge not witnessed in the idyllic land of Oz.