Well since this was my idea lets get this started...
Economic Lesson 1- Supply and Demand
Sam, although we have had several discussion about this specific lesson I thought it might be helpful for you to have it in writing as well.
So when we started the potty training exercise it quickly became clear that there should be remuneration for your ability to "produce". In the beginning your production of #1 flowed freely and we were more than happy to give you a treat every time your production was localized in the proper receptacle. I even enjoyed shopping for matchbox cars to pay you for your "work".
Unfortunately you became so efficient and productive in producing #1 that our willingness to pay dropped due to this excess supply. Now at the same time you were having trouble delivering #2 to the desired location and therefore we raised the stakes and offered you a trip to the toy store where you could have whatever you desired. In summary this is an excellent example of what happens in a free market system: ceteris paribus - excess supply will cause a drop in value while limited supply will lead to an increase in value.
On a side note - I hope by the time you read this, the ramblings of John Maynard Keynes will no longer be viewed as economically viable. If for some strange Keynes is still required reading in your education journey, please also read Ludwid von Mises.
God Bless, Dad
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