An Example of a Turn from the Simulation
Students who had been randomly assigned to the Upper Middle Class would be given the descriptions of all the social classes this problem at the beginning of the week. They would be asked to bring to discussion section the decision that they thought their character would make with a justification of their choice.
Turn 1—1790—Conditions in Premodern Europe—Upper Middle Class
Alfred Geldmacher Economic Points: 350
Age: 62 Status Points: 350
Wife: Frieda Geldmacher
Children: Ludwig (32), Gretchen (30), and Gernot (25)
Grandson: Wolfgang (6 months)
Problem
You, Alfred Geldmacher, are a small grain merchant in Dresden, whose family has dealt in rye for several generations. Your family has never risked what money it had by speculating on grain futures, believing that traditional business practices are soundest, though they may never bring fame and fortune. This conservative philosophy is consistent with that of the other merchants of Dresden, and consequently there is little disparity in wealth among this segment of the upper middle class. Although you are comparatively well off, especially in respect to guildsmen such as the Grobschmieds, who are blacksmiths, you have never enjoyed either the wealth or the prestige of the aristocracy, who monopolize the offices in the lavish court of the King of Saxony, Friedrich August III.One day you sit down with your friend Fritz Unternehmer at the Königbräu, your favorite beer house Herr Unternehmer deals in linen. He directs a cottage industry in which he rents equipment to peasants in the nearby village of Keindorf and sells the cloth they produce. Through this "putting out" system he can avoid the stiff guild regulations that apply in Dresden and make a good profit. As he quaffs his beer, Fritz's tongue loosens and he confides in you that he intends to speculate heavily in the grain market. For the past two years there have been terrible harvests due to a killing frost and to a blight which destroyed much of the crop. As a result, there is a severe shortage of grain this year and prices are steadily rising. Men in other towns have reputedly made huge profits already. Now it is apparent that Dresden merchants, too, wish to capitalize on the famine. If they are successful and you do nothing, you fear that your economic position will be threatened and your status will decline considerably. In order to uphold your family's honor, which of the following options should you choose?
1) Although your area has had very poor harvests, there are rumors that there are places across the Saxon border which are having their best harvests ever. You realize that you could take the money you have saved over the past several years, cross the border and buy grain, import it back to your community, and sell at a large profit. You know that you will have to pay tariffs when you cross any of Germany's many borders but you hope that the tariffs and the bribes for customs officials will not offset profits.
2) By speculating on the grain market, you might make a lot of money and make the family name famous. You might, on the other hand, lose everything and bring the family into disgrace. You decide to carry on business as usual, not making a great profit but making a little bit more than normal. You follow the Geldmacher tradition of risking no money on an uncertain investment. Instead, you offer your son in marriage to the beautiful Monika von Steinherz, a Dresden aristocrat's daughter, knowing that a family tie with the aristocracy will immediately boost your status in Dresden and consequently your business reputation.
3) By being conservative you have managed to save a little bit each year, even though the harvests have not been good for several years. You now have quite a tidy little sum set aside. With the prices rising quickly you know that a wise investment now could result in a handsome profit in a very short time. Failure in this venture, however, would ruin your family. Take ¾ of the money you have set aside and buy as much grain as you can, although this goes against all the traditional business practices of your family. Buy all of this grain in the surrounding neighborhood, where your business dealings will not be hindered by tariffs and bribes to customs officials.
In discussion section the students would get the results for all of the characters, and they can see the consequences of the decision that they have made.
Turn I—1790—Conditions in Premodern Europe—Upper Middle Class
Results
1) The tariffs are high, but the customs officials are willing to look the other way after you give them a solid bribe. The bribes and shipping costs cut heavily into your profit, but you make a good deal and gain a lot of status in the community because you are now seen as a shrewd businessman. You become the leading businessman in the community.Economic Change +50___
Status Change ______+25__
2) Herr von Steinherz is amused by your pretensions and laughs heartily because he ejects you from his posh doorstep. Your failure to marry into the aristocracy has slightly marred your status in Dresden, to say nothing of your ego. However, only a very exceptional merchant can cross the barrier into Steinherz's class, given the social conditions in pre-industrial Germany. You find some solace anyway, in the good profit which you make with your conservative business practices.
Economic Change ______+10___Status Change __________-10___
3) Without warning there is a revolt in the countryside, and the peasants go on a rampage, trampling fields and looting grain storehouses. You lost most of your savings and some status. Although everyone in the community sympathizes with your misfortune, they criticize you for risking as much as you did.
Economic Change _______-20___Status Change __________-10___ Turn 1—Conditions in Premodern Europe—Lower Middle Class
Results
1) Harassed by the police with whom you must register in every town, you are also unable to find work as a journeyman and are forced to join the urban proletariat in Chemnitz. Not only have you become destitute from having severed relations with your father but you have also lost a great deal of status in your move from the lower middle to the working class. One of your friends has died of consumption and the other has taken off his own way. You live with Gertrude, but she is not too well and is pregnant. Play rest of simulation as a member of the Urban Proletariat.
Economic Change ___-70___Status Change _____-140___
2) Your decision to remain in Dresden means that life will continue for you as it was before, since you have elected not to take the risks which rioting or tramping would involve. You do receive your expected beating for associating with the "scum" at the Königbräu.
Economic Change ____0___Status Change _______0___
3) Rioting may provide an important psychological release valve for you, but it does nothing to improve either your economic position or your status. Herr Unternehmer calls in the police to quell the disturbances in his street and you are promptly arrested and jailed. Though your father is able to obtain your release, you realize that an immediate improvement in your home situation is highly unlikely. You set out for Chemnitz to find work as a member of the urban proletariat, and take Gertrude with you. Play rest of simulation as a member of the Urban Proletariat.
Economic Change ___-70___Status Change ______-140___